‘No certainty’ in retirement plan
PA Wellington The guaranteed retirement plan announced in last evening’s Budget fails to provide certainty for people’s retirement, the Life Offices Association says. The chairman, Mr Boyd Klap, said the plan would reduce the benefit, and increase the age at which people received it. “Quite simply, it gives you less at an older age,” Mr Klap said. The guaranteed retirement income, which will replace national superannuation from next April 1, will be aligned with the rate of the new universal benefit, also announced in the Budget. The G.R.I. plan stipulates the portion of a person’s existing tax that is going towards the retirement income fund. The rate has been initially set at 7.5 c in the dollar. Mr Klap questioned how the Minister of Social Welfare, Dr Cullen, could read the future by saying the G.R.I. tax rate would be “roughly constant” over the next 30 years. He said the new retirement tax failed to encourage people to save for retirement. The only concession the Government had made was to reduce the surcharge on annuities and private schemes 50 per cent, he said
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Press, 28 July 1989, Page 3
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188‘No certainty’ in retirement plan Press, 28 July 1989, Page 3
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