The aim of UnitedFuture’s seniors policy is to continue the full involvement of people 65+ in society: at work (should they choose it), with good health, secure income and strong involvement in the community.
Superannuation
It is UnitedFuture policy to:
- Introduce FlexiSuper, which gives people the option of choosing to receive New Zealand Superannuation at reduced rates from age 60-64 or at increasingly enhanced rates if they hold off until ages 66-70;
- Introduce compulsory Kiwisaver, which will increase the saving rate of New Zealanders, deepen the investment pool and provide financial security and certainty in retirement;
- Change the formulation of NZ Super, by calculating it based upon the anticipated forecasted changes to the consumer price index and increases in the average wage for the following 12 months. The current formulation creates a lag that cheats our over 65s of their full entitlement. Any unforeseen changes to inflation or wages will be adjusted at each April, in favour of superannuitants.
Social Security Act 1964 Section 70
Section 70 of the Social Security Act 1964 requires the rate of any New Zealand benefit or pension to be reduced by the amount of any overseas benefit or pension that:
- are administered by or on behalf of an overseas government; and
- form part of a programme providing benefits, pensions and periodical allowances for the same circumstances for which New Zealand benefits and pensions would be paid (for example old age/retirement, invalidity and survivors pensions)
In UnitedFuture’s view, the provisions of Section 70 should only apply where the overseas pension in question has been fully funded from general tax revenues. Overseas pensions that are based on either a compulsory individual contribution, or are in the form of a national insurance scheme, or which may be a combination of both and are deemed to be equivalent to a national pension, should be exempted from the requirements of Section 70 and therefore should be paid in full to the recipient without impacting on the entitlement to New Zealand Superannuation.
This would mean that the only pension arrangements to be captured by the provision of Section 70 would be national tax-payer funded pension schemes in other countries. Contributory pensions, regardless of whether they are on a compulsory national basis or not, and private pensions, should, in our view, be exempted from the provisions of Section 70.
The Cost of Living
It is UnitedFuture policy to:
- Subsidise the power bills of over-65s by $50 per month for the three coldest months of the year - June, July and August - so seniors can afford to keep warm;
- Adopt a national strategy, including private sector funding, to insulate all NZ homes, prioritising the homes of those on low and fixed incomes, including superannuitants;
- Promote co-housing as an option for older people to join together to create and manage their own shared accommodation.
Involvement in the Community
It is UnitedFuture policy to:
- Ensure that our seniors continue to be actively engaged in the community by promoting business mentoring by retired & semi-retired professionals;
- Increase the assistance available to Grandparents Raising Grandchildren, and ensure that Work and Income caseworkers are aware of these entitlements;
- Undertake a campaign to raise expectations of older workers and break-down any negative attitudes of employers and the broader community towards them. The government can lead by taking steps as an employer to retain older public servants and to give them flexibility in their working lives;
- Fund training programmes that are specifically targeted at up-skilling older New Zealanders who find themselves out of work due to the use of new technologies.
see also UnitedFuture Policy on Seniors Health and Aged Care