Rethinking NZ Super: Expert Challenges Age Rise

In a recent NewsTalk ZB interview, Jonathan Eriksen - retirement policy veteran of 50 years - responded to the PM's State of the Nation hint at lifting NZ's retirement age.

'Inevitable? No.' he asserts. Eriksen’ advocates ditching the current TTE (Taxed-Taxed-Exempt) for EET (Exempt-Exempt-Taxed) treatment for KiwiSaver, exempting employer contributions and investment income while taxing only withdrawals. This means more for investors and the government at tax time, thanks to the magic of compounding interest. 

Why EET Wins 

This mirrors Australia's success, since they introduced compulsory super at 3% employer levies in 1991, their super funds now total trillions, fuelling infrastructure without raising the age and without extra taxes.

NZ could implement this quickly, deferring tax short-term but growing peoples’ savings (and the future tax take) massively - crucial for an ageing population and equity for Māori, Pacifica people who often stay working for longer due to lower lifetime earnings, and manual workers, who often have to stop working sooner because of the impacts of aging and physical labour. 

Governments shouldn’t prioritise elections over reform. We need good, research-led, long-term and bipartisan policies from our people in power. Meanwhile in France, the failed push to increase the retirement age to 64 saw three PMs sacked in months. 

Act Now for Your Future 

Eriksen’ urges alignment with Australia amid global flux. At EriksensGlobal, we guide clients through super strategies. Contact us to review your lifetime financial plan.

Full interview available here: Expert offers "better way" of bolstering superannuation fund.

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