Superannuation is shaping up to be a hot
election issue. Along with many of you, I belong to the post-World War II generation known
as the baby boomers. Most of us boomers, born between 1945-65, will be retiring over the next couple of decades. Unfortunately the generation coming after the boomers, the so-called generation X-ers, are not as numerous. This means we've got less taxpayers paying for superannuation. Many countries in Europe, North America and parts of Asia are facing the same situation as New Zealand.
To address this situation and smooth the costs of an ageing population, last year the government passed the New Zealand Superannuation Act. The act created a guaranteed superannuation fund, which the government is currently paying $23 million into each fortnight.
The New Zealand Super Fund is one of the most important political initiatives in decades. It will be of benefit not just to those who are of retirement age today, but also to the superannuitants of the future - the people who are now in their mid-fifties and younger.
National say they are prepared to guarantee superannuation at current entitlements to people who are now in or near retirement. But they are refusing to state where their cut-off point would be and who would miss out. Remember, they cut superannuation in 1998. And also remember that a future National government would likely include ACT as a coalition partner - a party who are on record as supporting a raise in the qualifying age for super from 65 to 68.
It's time for National to set out a clear policy on superannuation as without it we can't have an honest debate about super.
As the population ages, more and more people will be looking at spending their twilight years in retirement villages.
With this in mind the government is proposing legislation - the Retirement Villages Bill - to protect the elderly from the small percentage of retirement village operators who put profits before the interests of their residents.
Under this legislation villages would be required to provide a comprehensive disclosure statement which will outline information that must be presented to intending residents, including the recommendation that people seek legal and/or financial advice before signing up to live in a village.
It will also require residents to have a 10-day "cooling off" period, giving them a chance to think about their decision before buying into a village.
Also contained in the legislation will be provisions setting out a Code of Resident's Rights, a Code of Practice for the operators and penalties if the legislation is breached.
With these pieces of legislation this government hopes to ensure that our older citizens are able to live out their twilight years in relative comfort and with dignity.
If you would like to discuss these or any other matters further, please phone me at my Taita electorate office on 576-0156 or my Upper Hutt electorate office on 528-5715. I am also available at my Parliament Office on 470 6565. If you prefer you can write to me C/- Parliament Buildings, Wellington (no stamp required).