Govt urged to address ageing population issue

Paul Newfield

A retirement investment specialist believes New Zealand should take a leaf out of Australia's book when it comes to the retirement policy.

In this month's budget, Australia's Treasurer Wayne Swan announced that the age a person is eligible to receive a pension will rise from 65 to 67 by 2023.

In addition, retirement tax benefits for higher-paid individuals would be reduced and the Government would stop matching contributions to low and middle-income earners to pay for a weekly increase for current pensioners.

Retirement investment consultant Paul Newfield says New Zealand's Government must also address the issue of an ageing population.

He said currently around 11 per cent of the population is over 65 but in 2051 the number will rise to 25 per cent.

Newfield said raising taxes will be unpopular but the Government will be aware the power of the 'grey vote' will grow in the coming years.

He said as the population increases, the issues associated with an ageing population will be exacerbated.

- NEWSTALK ZB