National Superannuation

Press, 24 July 1987, Page 22

National Superannuation

A combination of economic circumstance and political perception, has led to the present National Superannuation Scheme. A large number of people are now concerned that it will no longer be affordable in its present form within the next two or three decades. The cost of National

Superannuation voted for the 1986/1987 year is 53536 M. This is gross expenditure before income tax and the surcharge on other income of superannuitants. The net expenditure is likely to be over $2500M and represents a cost of about $5lOO for each superannuitant. The net ex-

penditure is about 22 per cent of direct taxation receipts and over 15 per cent of total taxation receipts from all sources.

Demographic trends have become important in assessing future costs of National Superannuation. One of the most authoritative studies appears to be that carried out by the University of Waikato. It predicts that the scheme costs will double in the next 40 years. Currently, about 14 per cent of the population is over the age of 60. By the year 2016 the study indicates that almost 21 per cent of the population will be over the age of 60, and by the year 2041 that level will have increased to over 30 per cent. The Department of Statistics population projections support the Waikato study. By 2001 it is expected that there will be more than 587,000 people over the age of 60 years. Curently, there are about 503,000 or about 15 per cent of the population. In 10 years time the percentage will be closer to 16.5 per cent.