Retirement proposals

Press, 27 February 1986, Page 12

Retirement proposals

Sir,—J. P. Stuart (February 3) should be careful when he claims to support Mr Bill Sievwright in describing my superannuation proposals as ridiculous and unworkable. Mr Sievwright made such a claim on the basis that one needed to be a financial genius to turn $2OOO a year at 10 per cent into a worth-while retirement sum. Mr Sievwright obviously does not understand investment or the effect of compounding interest, whereas Mr Stuart at least recognises that the compounding effect would provide a large capital sum. He is incorrect in claiming that I have overlooked “the ever-present inflation rate.” In providing examples of my proposals, I have worked in Constant dollars for the sake of simplicity. Common sense dictates that the $2OOO would be indexed to inflation or preferably ,to any rises in the average wage. My figures are based on a 10 per cent return, very conservative by today’s standards. A higher -rate would maximise the total considerably.—Yours, etc., - JOHN GALVIN. N.Z. Party Leader, February 18, 1986. Priorities Sir, — I am disgusted by the way this Government holds back on such things as the school teachers’ pay claims, more police staff, money for health services, etc., yet gives the nod to the Ministry of Women’s Affairs to increase staff. As a family man and taxpayer, I see it as far more important that our children are back at school ‘than worrying about the expansionist plans of a few radical feminists. — Yours, etc.,

P. S. SMITH. February 25, 1986.