Debate on superannuation focuses on the eligibility age and long-term fiscal sustainability. Only rarely is the connection made between superannuation and retirement savings policies, and economic performance.
Since around 1950 New Zealand has been in relative economic decline, and its productivity has been stagnating for many years. Key to this has been low domestic saving rates, which translate into thin capital markets, investment short-termism and to a low ratio of capital to labour, constraining labour productivity. Low domestic savings rates mean high real interest rates and a real exchange rate that weakens our tradeable sector.
The National Party’s policy is that the entitlement age for superannuation goes up to 67 from 2044. In contrast, Carmel Sepuloni in her 27 May address to the Labour Party’s Congress confirmed that Labour will not lift the eligibility age for New Zealand Superannuation (NZS). She indicated it was affordable as long as we keep…
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Utopia, you are standing in it! 
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