Under-funded Super Fund

Clayton Mitchell
New Zealand First MP

The New Zealand Super Fund is punching well above its weight again, generating a 20.7 per cent return for the year to June 30, 2017, and adding another $5 billion to the total.

This should be celebrated. What should not be glossed over, however, is the fact that it could be doing so much better, and delivering so much more under different management.

In the nine years since National took power, not a single government dollar has been invested in the fund. In fact, since 2014 they've had the cheek to actually tax it. This makes no sense at all.

When they should have been putting money in, they've been taking money out.

If National had continued government investment in the fund, as they should, it would be more than $20 billion better off today and that 20.7 per cent return would have been closer to $9-10 billion for the year.

They have claimed the retirement age needs to be raised to 67 (but only starting in 20 years' time, so as not to put off their retiring voters). With continued, modest, and steady investment in the New Zealand Super Fund, there is, and will be, no need to raise the age of entitlement. A properly managed and supported fund will continue to ensure NZ Super is affordable for all future generations at 65.

The only consideration that should be given by the fund's managers is long-term investment in New Zealand infrastructure – as Winston Peters says “so it works for New Zealand's long-term interests”.

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