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It was very clever of the Government announcing that it was going to pump $12 billion into defence before saying anything about where the money鈥檚 coming from.
A lot of us got all excited about the defence money because, even if you鈥檙e a pacifist, you would have to agree that our defence force has been running on the smell of an oily rag for a very long time. That鈥檚 just a fact.
And we kind of accepted that there would have to be trade-offs. We just didn鈥檛 know, and we still don鈥檛 know, what those trade-offs are going to be.
Today though it鈥檚 being proposed that NZ Super should be the Peter that pays Paul, and that we need to sort out the elephant in the room and make people wait longer before they get the pension. And I agree.
It鈥檚 come from economist Cameron Bagrie who has been trying to find out where the defence spend money is coming from. Without any detail forthcoming from the Government, he鈥檚 suggesting the Super scheme.
He鈥檚 saying: 鈥淲e cannot continue to shy away from that rising expense if other priorities, such as defence, are going to be met.鈥
He鈥檚 not the only one talking about the pension scheme needing a reworking.
The NZ Herald鈥檚 head of business Fran O鈥橲ullivan says it was a National Government that increased the entitlement age for NZ Super from 60 to 65.
But that the current National Party leadership is sticking with the idea of not doing anything about the eligibility age until 2044. The party鈥檚 current commitment is to keep the age at 65 for another 19 years.
Fran O鈥橲ullivan describes that as 鈥渘onsense鈥. And I agree with her too. There is no way we can afford to keep paying the pension to anyone and everyone once they turn 65 for another 19 years.
National鈥檚 policy at the moment commits it to increasing the age of entitlement to 67 after 2044, which means no one born before 1979 will be affected. So someone who is 47 now, for example, would still get the pension when they turn 65. Crazy.
There鈥檚 also nothing in National鈥檚 policy about doing something about the other nonsensical part of all this 鈥 where people still get the pension if they keep working beyond 65.
Because the pension 鈥攚hen it comes down to it鈥 is to help stop people falling into poverty after they retire. That鈥檚 what it鈥檚 designed for. It鈥檚 not there to pay for some joker鈥檚 beer on a Friday and Saturday night, who doesn鈥檛 need it for anything else because he鈥檚 still working and earning a salary or wages.
Or he might be someone who鈥檚 made a truckload of money running a business and still earns a dividend or maybe even still draws a salary.
Back to Cameron Bagrie. He鈥檚 saying today that health and NZ Super make up 37% of government operational expenses and that things are only going to get tighter with more defence spending.
He says: 鈥淲e now have a new pressure in the mix: national security - which is being prioritised. No credible political party can ignore that.鈥
Referring to the pension, he says: 鈥淲e cannot continue to shy away from that rising expense if other priorities, such as defence, are going to be met.鈥
It鈥檚 not something former National Prime Minister Jim Bolger shied away from.
Somehow, he managed to convince New Zealanders that increasing the qualifying age for was 鈥減lain common sense鈥, because people were living longer and receiving the pension for a lot longer.
Age eligibility went up to 61 within a year of that and it鈥檚 been 65 since 2001.
And just like it was looking less affordable then, it鈥檚 looking even less affordable now.
That's why we need to have the same fortitude - or our politicians do - and they need to bite the bullet, instead of ignoring it.
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