National and Labour are committing to having some serious discussions on superannuation and the age of eligibility in the hopes of achieving cross-party accord - with both saying if elected, this will be a priority within their first 100 days in government.
The age of superannuation, KiwiSaver and New Zealand’s retirement system as a whole remain contentious topics - they’ve also become heavily politicised, with political parties proposing to increase contribution rates and bring in compulsion.
Raising the age of superannuation eligibility has been hovering around the edges with parties like Labour and NZ First against increasing the age, while the likes of National and ACT want to see an increase to 67 from 65.
The discussion on superannuation resurfaced after Labour finance spokesperson Barbara Edmonds and National finance spokesperson Nicola Willis, on Sunday during TVNZ's Q+A’s finance debate, both agreed to a cross-party accord on the future of NZ’s retirement system.
And speaking to reporters after National released its fiscal plan on Monday, National leader Christopher Luxon says it’s not a political issue, it’s a Kiwi issue.
“There are some issues that you do need to have real certainty on [and] political alignment around. And I think we should at least die trying, trying to find common ground," he says.
While National is a party that believes the superannuation age should lift for “good reasons”, Luxon says, “the reality is, we’re also being very pragmatic and acknowledging that it requires political consensus, and we don’t have that currently”.
Luxon says he thinks it’s "unhelpful" for parties to come with their own “preordained or predetermined outcomes around that”.
“I think we should sit around and actually try and find common ground. We’ll have our own views on that as parties … It’s a matter that’s really of huge importance to New Zealand going forward and it’s something that actually does require bipartisanship. And I think parties working in a cross-party way would be very good.”
Willis says discussions around superannuation and the age of eligibility were bigger than one election campaign.
“This is about New Zealanders’ future entitlement and their retirement. And I want them to have security about that. So let’s work together on it.”
In the spirit of finding cross-party accord, Willis says she is open for discussions about what a sustainable future for superannuation looks like.
“And if other parties wish to bring specific ideas to the table, then of course, as Finance Minister, I would consider those in good faith.”
Upfront about her position, Willis has made clear she thinks the best thing to do is “gradually and progressively increase the age” and that superannuation should be a universal entitlement.
"I think every New Zealander at retirement should get New Zealand superannuation. I think together we can work out settings that achieve that. But I'm inviting other political parties to come to the table."
“I think it should be a priority within our first 100 days to kick it off [if elected] … We will have to consult on a terms of reference and parties will each have to come to the table in the spirit of finding an enduring solution so that New Zealanders can plan with confidence," she says.
Labour finance spokesperson Barbara Edmonds says she would like to see a Parliamentary accord put in place.
Asked if Labour would commit to starting a working group on superannuation within its first 100 days if elected, Edmonds says she would love to and she was committed to this discussion.
Labour has been clear about keeping the superannuation age at 65. Asked what the point was in an accord if National and Labour disagree about the age of eligibility, Edmonds told reporters: “We are keeping it at 65 because it all comes down to affordable choices.”
“The one area where the government is not looking is around revenue to support the increasing age of our population,” she says.
“But there are key areas where we can agree,” Edmonds says, using KiwiSaver employer contributions reaching 6% as an example between Labour and National.
“Other parties don’t, so we want to try and where we can find agreement, we should find agreement.”
“There will be areas we don't agree on, such as the age of eligibility but there are other aspects that we should be discussing and should be trying to get some agreement, so that people can plan for their retirement,” Edmonds says.
On whether there were other areas that could potentially have a cross-party working group, Edmonds pointed to climate adaptation.
“At some point, that for me is a fiscal risk for our country’s books, where when you have mortgages that go out to 30 years, you’ve got insurance that’s only annual premiums."
“We should be having that conversation about, at what point is there a line in the sand and that’s something that needs to be done across the House.”
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