New Zealand’s credit downgrade stems from National’s failure to make the hard decisions; one of which is the growing unaffordability of superannuation, ACT New Zealand Parliamentary Leader John Boscawen said today.
“Standard & Poor’s specifically cited ‘emerging fiscal pressures associated with …[New Zealand’s] aging population’ as one of the factors that led to our downgrade,” Mr Boscawen said.
“This agency joins the growing list of people and organisations, like Retirement Commissioner Diana Crossan, that believe the NZ Super scheme is unaffordable, and confirms what the ACT Party has been saying all along.
“Ms Crossan recommends raising the retirement age from 65 to 67 over a period of 13 years. This is hardly an extreme policy and would give New Zealanders time to adapt and plan for the change. Rather than take a sensible approach, National’s refusal to address this issue means that all New Zealanders will be in for a short sharp shock in the future.
“The truth is, unless changes are made, superannuation costs will double in the next decade. It’s simply baffling that National continue to claim that it is affordable – as Prime Minister John Key did today – when an international credit agency can see right through these hollow statements,” Mr Boscawen said.