UNIVERSAL SUPERANNUATION

Otago Daily Times, Issue 24261, 1 April 1940, Page 6

UNIVERSAL SUPERANNUATION

Commencing to-day, Social Security makes an advance, albeit quite a modest one, towards that “ universality ” envisioned by the Government. All persons of 65 years or over who are not in receipt of an age benefit, may now apply for a benefit of £lO in the current financial year, payable in quarterly instalments, there being no other test of eligibility than a ten year’s term of residence in the Dominion. In the following year, 1941-42, the benefit will be increased to £l2 10s, and there will be annual increments thereafter until a maximum benefit of £7B a year is payable to all persons of the qualifying age. The number of elderly people who will make claim to this benefit, or bonus, can only be conjectured. It is impossible, however, not to view with some concern the increasing expenditure upon pensions and benefits

which has to be met by the people of the Dominion. Ten years ago the old-age pensioners numbered 26,909, and the amount paid to them was £1,107,993. In 1937-38, prior to the introduction of Social Security, the number of pensioners was 59,953, and the amount paid to them £3,235,057. In January of the present year the number of age beneficiaries was 92,645, and the annual value of their benefits had reached £6,992,381. With the commencement of “ universal ” benefits both the number of beneficiaries and the total payments in age gratuities must be increased considerably, and this increase will be progressive. The question is not whether the payment of benefits to all elderly people, irrespective of their means, is right, but whether the Social Security funds will be able to meet the increasing demand. The answer is that they will not, unless there is an increase in New Zealand of wageearners —and hence of contributors to Social Security—which is not at present in sight, and cannot be provided out of the present population. This, however, seems to be a problem that does not greatly concern the Government. With the medical benefits for which the people are contributing still in abeyance, there is presumably a sufficient Social Security income to meet immediate demands* and the Government is apparently content to leave the future to solve its own problems, not the least of which will be that arising out of the constantly increasing number of those entitled to benefits.