Super, scheme ‘affordable’

Press, 29 December 1986, Page 14

Super, scheme ‘affordable’

PA Wellington The national superannuation scheme would remain affordable as long as people with substantial incomes contributed their share, said the 60s-Up movement. The movement’s president, Mr Bill Sievwright, said assertions that the scheme could not be sustained indefinitely by a slowly ageing population were ridiculous and did not acknowledge wider issues. A recent report from the Planning Council’s population monitoring group predicted that one in five New Zealanders would be at least 60 by the year' 2011, and the resulting rise in the cost of superannuation would be insupportable. Mr Sievwright said it was more important to look at future incomes than at the superannua- . tioij scheme. “What these commentators overlook is the total

wealth society must produce to support incomeearners and financial manipulators as well as beneficiaries and superannuitants.” “It will be the excessive salaries, interest, capital gains and Social Welfare payments received by those’ in the higher income bracket that are the greatest threat if present trends continue.” The superannuation scheme was sound and should riot be changed dramatically on the ground that it would be unaffordable in 25 years time. Politicians should work to ensure that people nearing retirement could plan activities within the security of, the scheme. “A united, firm appoach is neederi to recognise that a universal super-, annuation scheme such as we have is not only viable but essential in a sophisticated society,” Mr Sievwright said.