The Star.

Hawera & Normanby Star, Volume XLII, Issue 7543, 19 August 1902, Page 2

The Star.

Delivered every evening by 6 o'clock iv Hawera, Mantua, Normanby, Ckaiawa, Eltham, Mangatoki, Kaponga, A vatuna, Opunake, Otakeho, Mnnutalii, A. too, Hurleyville, Patea. and Waverley.

TUESDAY, AUGUST 19.

OLD AGE PENSIONS.

Whether there was an} truth in the rumour recently circulated that an effort ia to be made to induce Sir Robert Stout to re-enter party politics has not yet appeared, but there has not been a lack of evidence that his activities are not wholly employed by his judicial work. His latest excursion into the field of controversy is an article in the isew Zealand Times on the subject of old age pensions. Starting out with the declaration "our old age pension scheme is not popular ; many refuse to take the pension ; it is really oharitable aid ; " and having shown that it is inoreasing in cost, Sir Robert outlines a scheme for voluntary pensions or annunitiep. Briefly the idea ia I that people should Jze encouraged when they are young to purchase a right to a pension or annuity, and he gives calculations made by actuaries to show how for a comparatively small sum paid at twenty years ol age every person could secure free of the test of poverty or character, or any other limitation an indefeasible right to an old age pension or annuity of annual value equal to that now granted by the State on the qualification of poverty. Not limiting the amount to 10s a week, he would have the Government encourage provision for payments up to £100 a year ; and indeed would popularise the system of annuities purchasable at any age. But his main purpose is to show that by a small sacrifice in youth provision could be easily made by most. "It may be asked," he saya, '? flow can our working people afford to pay £20 or £25 at the age of twenty 1 Suppose a parent put by one penny every day for a child and invested it at 3 per cent, this would give more than the required sum. At 2£ per cent the amount at twenty would pome £38 17s 7d, and is that too much to ■■ ask a parent to endow a child with % Suppose a man only set aside one penny a day during 240 days in the j year from the birth of his child and I he invested it in the savings bank he would have when the child became twenty the sum of £25 10s lOd." But supposing that the whole sum had to be found at the age of 20 or 21 without previous accumulation Sir Robert remarks " how many of

our young lads are able to buy bioyolos, etc Might not many of them be induoed to invest in annuities, and thus be enabled to look forward to their old age being free of \*ant." Sir Eobert Stout thinks that indirectly there would be the further advantage that by a system of pu chasing annuities money for publio works would be supplied by our own people and we should ba paying our own people for loans instead of paying interest to the outside creditor. The proposal revives a question of great interest, and it is obvious that if Sir Robert B tout's ideas could be given effeot to tb.9y would tend to add to the happiness of the people, and also promote thrift and self-reliance.