1 00:00:00,120 --> 00:00:04,000 Speaker 1: Yesterday's State of the Nation address didn't really tell us 2 00:00:04,000 --> 00:00:05,760 Speaker 1: anything that we didn't already know, but there was one 3 00:00:05,800 --> 00:00:08,480 Speaker 1: comment that made everyone go, oh, he's going there and 4 00:00:08,560 --> 00:00:12,160 Speaker 1: made everybody prick up their ears. First, to support New 5 00:00:12,240 --> 00:00:16,320 Speaker 1: Zealander's financial security against the backdrop of an aging society 6 00:00:16,680 --> 00:00:20,240 Speaker 1: and an inevitable list in the retirement age, an inevitable 7 00:00:20,320 --> 00:00:24,160 Speaker 1: lift in the retirement age. So if super needs to change, 8 00:00:24,160 --> 00:00:27,440 Speaker 1: how should we do it? Jonathan Erickson, as a retirement 9 00:00:27,480 --> 00:00:31,080 Speaker 1: expert with fifty years of experienced superannuation policy, he joins her. 10 00:00:31,120 --> 00:00:35,080 Speaker 2: Now are the Jonathan yeah moo and Andrew as. 11 00:00:35,000 --> 00:00:38,000 Speaker 1: The Prime Minister? Right, the raising of the retirement age 12 00:00:38,200 --> 00:00:39,360 Speaker 1: is inevitable. 13 00:00:40,640 --> 00:00:44,640 Speaker 2: No, no, with respect to the Prime Minister, there's a 14 00:00:45,120 --> 00:00:47,839 Speaker 2: better way of doing it, which is to change the 15 00:00:47,960 --> 00:00:54,240 Speaker 2: tax ranging from TT to ee T, which means making 16 00:00:54,560 --> 00:00:59,960 Speaker 2: contributions exempt for the employer and having a very low 17 00:01:00,120 --> 00:01:02,960 Speaker 2: rate of tax on the investment income and then tax 18 00:01:03,120 --> 00:01:08,160 Speaker 2: and benefit. And by doing that we grow our superannuation pot, 19 00:01:08,360 --> 00:01:12,399 Speaker 2: get a lot more like Australia in fact, and mean 20 00:01:12,520 --> 00:01:15,280 Speaker 2: that we can keep the retirement age of sixty five, 21 00:01:15,840 --> 00:01:20,360 Speaker 2: which is clearly better for Pacific Islanders. Iri and a 22 00:01:20,400 --> 00:01:25,280 Speaker 2: lot of hard working people whose backs give out before 23 00:01:25,360 --> 00:01:28,000 Speaker 2: age sixty five, so we don't even have to raise 24 00:01:28,040 --> 00:01:30,480 Speaker 2: the age. And the beauty of the system although it 25 00:01:30,520 --> 00:01:33,440 Speaker 2: all defer tax for a while, means you don't have 26 00:01:33,520 --> 00:01:36,440 Speaker 2: to change too many things and you can implement it quickly. 27 00:01:37,520 --> 00:01:39,399 Speaker 1: So it seems simple to you. How come the government 28 00:01:39,440 --> 00:01:41,560 Speaker 1: doesn't know about this idea? And have you told them 29 00:01:41,560 --> 00:01:42,040 Speaker 1: about it? 30 00:01:43,720 --> 00:01:47,680 Speaker 2: I've tried to for years, but they don't want to listen. 31 00:01:47,960 --> 00:01:51,680 Speaker 2: They're said in their ways, they're very short term focused. 32 00:01:52,200 --> 00:01:54,800 Speaker 2: They're trying to win the next election, and I could 33 00:01:54,800 --> 00:01:57,880 Speaker 2: assure Christopher Luxen this is not the way to do it. 34 00:01:58,680 --> 00:02:01,400 Speaker 1: I would suggest that actually even suggesting that they're going 35 00:02:01,440 --> 00:02:05,000 Speaker 1: to raise the retirement age would make them lose the election. 36 00:02:05,120 --> 00:02:06,440 Speaker 1: I thought it was quite a bit. I thought he 37 00:02:06,520 --> 00:02:07,960 Speaker 1: was taking quite a risk to say this. 38 00:02:08,040 --> 00:02:12,200 Speaker 2: Now, well, President Macronz had to change the prime ministers 39 00:02:12,200 --> 00:02:14,920 Speaker 2: in France three times in a few months because they 40 00:02:14,919 --> 00:02:17,240 Speaker 2: were trying to put the retirement age up to sixty 41 00:02:17,240 --> 00:02:18,200 Speaker 2: four in France. 42 00:02:19,560 --> 00:02:22,880 Speaker 1: Yeah, so if it is so, look if it is 43 00:02:22,919 --> 00:02:27,120 Speaker 1: so inevitable, And honestly, I've been saying this since Bulger 44 00:02:27,240 --> 00:02:30,200 Speaker 1: actually raised the age from sixty to sixty five. I thought, eventually, 45 00:02:30,200 --> 00:02:31,760 Speaker 1: we're not going to be able to afford this if 46 00:02:31,800 --> 00:02:35,400 Speaker 1: it has been so inevitable, when is the right time 47 00:02:35,919 --> 00:02:39,200 Speaker 1: to take the chance to actually introduce this while also 48 00:02:39,280 --> 00:02:40,000 Speaker 1: winning an election. 49 00:02:42,360 --> 00:02:45,280 Speaker 2: Well, the time is now. The whole world is in 50 00:02:45,320 --> 00:02:48,760 Speaker 2: a state of flux. You've got countries not knowing whether 51 00:02:48,840 --> 00:02:53,320 Speaker 2: they're an authoritarian regime or a democracy. And you know, 52 00:02:53,480 --> 00:02:57,000 Speaker 2: all's all over the place except town here, and we 53 00:02:57,080 --> 00:03:00,440 Speaker 2: need to get on and get New Zealand better to 54 00:03:00,680 --> 00:03:04,080 Speaker 2: the retirement savings in Australia. I just happened to be 55 00:03:04,160 --> 00:03:07,880 Speaker 2: in Parliament buildings in Canberra yesterday and looked at the 56 00:03:07,919 --> 00:03:11,520 Speaker 2: portraits of Bob Hawk and Paul Keating. And in nineteen 57 00:03:11,639 --> 00:03:15,640 Speaker 2: ninety one they introduced their compulsory super with a three 58 00:03:15,680 --> 00:03:20,600 Speaker 2: percent employer contribution levy. And now they've got trillions in 59 00:03:20,720 --> 00:03:24,720 Speaker 2: super in Australia and that's funding all their infrastructure and 60 00:03:24,800 --> 00:03:28,239 Speaker 2: a lot of their development in tourism and other things 61 00:03:28,320 --> 00:03:31,120 Speaker 2: which we desperately need to grow our country. 62 00:03:31,280 --> 00:03:32,840 Speaker 1: Jonathan, I got to go, but can you just tell 63 00:03:32,880 --> 00:03:34,680 Speaker 1: me what EET stands for? 64 00:03:35,840 --> 00:03:41,640 Speaker 2: Exempt? Exempt text? So you exempt the contribution income, you 65 00:03:41,880 --> 00:03:45,560 Speaker 2: exempt the investment income and you tax the end benefit 66 00:03:45,920 --> 00:03:49,320 Speaker 2: and by taxing it you actually offset the costs of 67 00:03:49,400 --> 00:03:54,280 Speaker 2: New Zealand superannuation to some extent without changing the retirement age. 68 00:03:54,360 --> 00:03:56,280 Speaker 1: Okay, Jonathan, I thank you so very very much. It's 69 00:03:56,320 --> 00:04:00,280 Speaker 1: News Talks MP For more from early edition with Ryan Bride. 70 00:04:00,440 --> 00:04:03,840 Speaker 2: Listen live to News Talks it'd be from five am weekdays, 71 00:04:04,120 --> 00:04:06,120 Speaker 2: or follow the podcast on iHeartRadio.