Tauranga NZ First List MP Clayton Mitchell is critical of Prime Minister Bill English's announcement to raise the retirement age from 65 to 67. Photo/file
The eligibility age for superannuation will rise to 67 by 2040, Prime Minister Bill English said yesterday, and Tauranga politicians are divided on the controversial move.
In a major development, English promised to begin progressively lifting the threshold from 65 to 67 in 2037.
That meant the changes would affect people born after June 30, 1972.
This Government have not put any money forward into the Cullen Fund and now they are starting to panic.
The Government would not act on the promise until after the general election in September. English said the major change would be legislated for next year.
"New Zealanders are healthier and living longer so adjusting the long-term settings of NZ Super while there is time for people to adapt is the right thing to do," English said.
In justifying the change, English noted that even someone who retired at 67 was likely to receive NZ Super for longer than someone who retired at 64 today.
"That is because average life expectancy is increasing by about 1.3 years each decade."
Tauranga MP Simon Bridges said he supported the move.
"It would give us for a country more choice in the long run in regards to Government spending so we will be able to spend more on things like health and education."
The proposed changes would strike the right balance of when they came into effect, he said.
NZ First MP Clayton Mitchell said he would not support anybody who wanted to raise the retirement age.
It was a joke that New Zealand could not afford for its citizens to retire at 65, he said.
"This Government have not put any money forward into the Cullen Fund and now they are starting to panic.
"It is affordable at 65. It would be very easily achieved providing that money is put where it supposed to be for a fund which was set up exactly for this rainy day that is approaching."
Tauranga's Labour candidate Jan Tinetti said her party had committed to not raising the retirement age.
"The leadership of Labour have done their homework that we don't believe it needs to go up because we are putting the money away and working the money right then there isn't that necessity to put it up," she said.
Tauranga Grey Power president Jennifer Custins and Age Concern chairwoman Anna Bones refused to comment in the story.