Key rules out retirement age rise

Diana Crossan, Retirement Commissioner

The Retirement Commission has recommended increasing the retirement age gradually from the year 2020 so that it reaches the age of 67 by 2033 but Prime Minister John Key says there will be no change on his watch.

Retirement Commissioner Diana Crossan made the recommendation in a report released today, saying it was needed to keep superannuation affordable over the long term.

"We know that there's a huge number of baby boomer superannuitants coming, and we can't keep on ignoring this issue until it's too late," she said.

The age of eligibility for New Zealand Superannuation should rise by two months a year from 2020, reaching 67 in 2033, Ms Crossan said.

The National Party pledged not to raise the age of eligibility in the 2008 general election and Mr Key today said that stood.

He disagreed with the assertion the current age had to rise.

"For a variety of reasons but in my view, New Zealand super is sustainable at age 65," he said.

- NZPA