SUPERANNUATION DISCUSSED

Southland Times, Issue 23552, 5 July 1938, Page 6

SUPERANNUATION DISCUSSED

JUNIOR CHAMBER OF COMMERCE NECESSITY EMPHASIZED BY CHAIRMAN (Special to The Times) DUNEDIN, July 4. The importance of a national superannuation scheme to the young men of New Zealand was emphasized at the annual meeting of the Dunedin Junior Chamber of Commerce tonight by the chairman, Mr W. H. Masters, when moving the adoption of the annual report. That there was an urgent need for a sound national superannuation scheme would not be gainsaid by anyone, Mr Masters said. Statistics of a well-known life insurance society recently showed that out of 100 men aged 25, after 40 years had elapsed, five were still working, five were independent, 36 had died and the remaining 59 were dependent on pensions or charity. The tremendous growth of the New Zealand pensions bill in recent years showed the necessity for a contributory plan by which recipients would not only help to defray the cost, but would feel that their pension was paid, not as an act of State benevolence, but as a right irrespective of personal income. The fundamental principle of superannuation was that the contributions should be based on what the contributor was likely to receive in the way of benefits. F< this reason persons in receipt of incomes of over, say, £3OO a year should either receive a larger pension or should be excluded altogether. Apart from this, Mr Masters said, thousands of people had made provision for their old age by insurances and superannuation and it was unjust to them to contribute to the national scheme in addition to carrying their existing obligations. Another question was the cost, which might be greater than the country could bear. The cost of the scheme must increase tremendously in the next four years and it was questionable if the national income would increase proportionately and whether, with a declining population, the burden would be too heavy for the contributors.