Finance Minister Bill English has given an intriguing insight into what a different Government without John Key as Prime Minister might do about New Zealand's age of entitlement for New Zealand Superannuation, which is currently set in stone at 65.
Key has promised to resign if he ever changed his mind on keeping 65 as the retirement age for New Zealand Superannuation, effectively shutting down debate about the retirement age, despite calls from the Treasury and the Retirement Commissioner in previous years to consider an extension of the policy.
Labour has already promised to phase in a later retirement age. English was asked about an expected gap opening up between the retirement ages in Australia, where the Government is increasing it to 70, and New Zealand, where it is stuck at 65.
English was speaking at a joint luncheon function with Australian Treasurer Joe Hockey. English and Hockey were asked if the gap would encourage Australians to migrate to New Zealand to take advantage of the earlier retirement age.
"I've got nothing new to say about the pension age. We made a committment. It's now become a matter of trust, as much as policy. The Prime Minister said he would resign if the age changes. If the age changes and he doesn't resign, no one would trust him ever again, even if they support the policy," English said.
"We're not changing it. A future Government may well do that (increase the retirement age)," he said.
Key comments
Key was later asked before Parliamentary question time if "trust" was the only issue preventing a change.
"It's one factor. I have worked pretty hard over the course of the six years I have been Prime Minister to make sure I campaign on issues," Key said.
"I do what I say I am going to do, and I don't think you can find examples where I've broken that," he said. "But actually we've put it into our models and it's totally affordable in our models," Key said.
"The reality of Labour wanting to increase the age of super is not because they are doing something altruistic, it's because they want to spend the money somewhere else," he said.
"So they are saying as an elected choice they are wanting to make New Zealanders work longer so they can spend money in a different place."
(Updated with comments from Key)
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