Means tests ‘seem unavoidable’

Press, 12 July 1988, Page 6

Means tests ‘seem unavoidable’

PA Wellington Means tests for State superannuation seem unavoidable in the long run, according to the Minister of Social Welfare, Dr Cullen. “This will need to be done in such a way to ensure that all New Zealanders still receive an adequate retirement income to sustain them in their later years at a reasonable level of comfort and dignity,” he said. Because of a continuing rise in the number of people aged over 60, the present system of Government superannuation would cost so much that it would be virtually unsustainable beyond the year 2006.

Dr Cullen said he was a committed defender of the Welfare State, but could not allow the nation

to become so poor that many elderly people would live in dire poverty as a consequence.

The Government recognised the State would always need to play a part in providing income support for retired people.

Dr Cullen said his speech on retirement policies to a Policy Studies seminar several weeks ago had prompted many people to write to him suggesting what could be done to improve the longterm security of superannuation.

Those suggestions included raising the eligibility to 65, not providing superannuation for people under 65 who had fulltime jobs, introducing a type of compulsory savings for retirement, and creating an environment which encouraged people to provide for themselves.