CORRESPONDENTS' VIEWS

Auckland Star, Volume LXXVI, Issue 2, 3 January 1945, Page 4

CORRESPONDENTS' VIEWS

ENCOURAGING THRIFT (To the Editor) In a recent interview given in your columns a pioneer made reference to the lack of consideration shown to the thrifty who made their own provision for old age. There are many men and women who have helped to make this country what it is and who, with a sturdy sense; • of independence, have striven and* '; succeeded in making modest pro-, vision for declining years and now wonder if the struggle was worth while. While in many cases ekeing out a frugal living on a small fixed income, they are called upon to pay full social security tax, though past pension age and unlikely to come on the fund. When Mr. Nash was drafting the Social Security Bill he asked electors to make constructive i suggestions. I was moved to write ' urging consideration for those reach-" , ' ing pension age who preferred to carry on, though eligible, by exempting them from tax up to the amount they could draw by coming on the fund. I used as illustration two men of pension age, one in a small business worth £300 drawing £4 a week who preferred to carry on while able, and yet who is now re- • quired to pay tax of 10/ a week. The other man, worth £3000, buys home and furniture at cost of £2000, and places £500 iel bank in his own and wife's name. " He can come on the " fund for the full pension, tax free, fc bank interest counting as income for which an extra £1 a week is allowed. ' The whole trend at present is to ' make people pension-minded and to | discourage the practice of ■ thrifts -. ■Mr. Nash's reply was evasive. . .>, Jj C. A. FRENCH, *vl