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Speaker 1: Afternoon, we're being warned we are not taking the unaffordability

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Speaker 1: of superannuation seriously enough. The warnings come from the boss

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Speaker 1: of an investment company who says the age of the

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Speaker 1: pension may need to rise not to sixty seven, but

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Speaker 1: maybe seventy two or seventy three. Rupert Carline is the

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Speaker 1: managing director of Codo walthen is with us. Hi, Rupert, Hi,

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Speaker 1: do you agree seventy two or seventy three?

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Speaker 2: If that to be honest, I think if we want

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Speaker 2: to keep it at the four hundred and fifty dollars

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Speaker 2: a week, it's going to have to grow to seventy

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Speaker 2: three seventy four. The bigger question I've got though, is

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Speaker 2: four hundred and fifty dollars a week enough for people

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Speaker 2: in today but definitely not in the future.

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Speaker 1: Well, no, it isn't. But I mean, is that even really?

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Speaker 1: Is it a realistic possibility that we have to raise it?

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Speaker 2: Hi? It definitely is it? Even under the sixty seven scenario?

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Speaker 2: Ends it super as a percentage of GDP is expected

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Speaker 2: to go from four and a half percent all the

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Speaker 2: way up to seven percent, So that means we're going

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Speaker 2: to have to find another two and a half percent

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Speaker 2: of GDPN taxes just to pay for that. And so

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Speaker 2: if we want to keep it at at steady rate,

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Speaker 2: then it's going to have to go much high than

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Speaker 2: sixty seven.

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Speaker 1: Okay, if it's not full fifty, where should it realistically sit?

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Speaker 2: Well, I think most people so sorry. The Retirement Commissioner

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Speaker 2: said the minimum you need to live is about eight

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Speaker 2: hundred and fifty dollars per week, and that's largely if

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Speaker 2: you own your own house. So there's still a massive

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Speaker 2: gap for people between those two. I mean, if you

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Speaker 2: think about now where even if you got if you

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Speaker 2: own a house, you pay rates, you pay insurance. That's

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Speaker 2: the first hundred hundred and fifty dollars a week gone

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Speaker 2: before you've even started thinking about food and all the

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Speaker 2: other stuff.

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Speaker 1: Okay, So you say seventy four is maybe where it

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Speaker 1: needs to go to how quickly.

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Speaker 2: Well, that's the big question. I think that is going

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Speaker 2: to have to take time because we still do have

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Speaker 2: forty percent of kiwis that rely on inside super in

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Speaker 2: their retirement. I'm a publicly I'm a big fan of

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Speaker 2: means testing because I think that means that we can

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Speaker 2: make the change today. That also means that we can

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Speaker 2: direct the money to the people that need it, so

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Speaker 2: we can actually give people that need it seven hundred

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Speaker 2: dollars a week rather than trying to give everyone four

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Speaker 2: hundred and fifty. But fundamentally, the current proposal to move

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Speaker 2: it to forty seven over twenty years, I mean sorry,

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Speaker 2: sixty seven over twenty years, is just far too slow

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Speaker 2: because the damage is already going to be done by then.

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Speaker 1: All Right, Rupert, it's good to talk to you. Thanks

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Speaker 1: for your perspective on that. Rupert Carline Coder, Wealth Managing Director.

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