Superannuation is unlikely to be a large issue in this year's election campaign, as there is little differentiation between the political parties, the Association of Superannuation Funds says.
ASFONZ says the parties have largely coalesced on what has been one of the political hot potatoes of the last 30 years. The differences on public provision (New Zealand Superannuation) are now confined to the details.
There is no difference between National and Labour on the design of New Zealand Superannuation, both now and in 20 years time. The other parties would see either smaller increases (Progressive) or larger (New Zealand First) in the annual amounts payable (or none at all) while Act is the only party now saying that we should review the whole design.
The major parties part company on private provision. The parties supporting the government favour the new KiwiSaver proposal for compulsory, opt-out workplace superannuation – only National and Act say that KiwiSaver would not proceed if they had any influence.
The Maori Party has seemingly not decided what it thinks about KiwiSaver while New Zealand First wants to expand the idea.
Only New Zealand First favours compulsory private provision and tax incentives for private saving.
The Greens say we should give tax breaks for saving – the parties who have signed up to KiwiSaver also support the subsidies that are now re-named “sweeteners”.
Other than that, savers cannot expect direct intervention in the saving decision – other than through KiwiSaver.
All eight parties supported the work of the Retirement Commission and some form of regular review, such as the work done in the past by the Periodic Report Groups.
“Much political blood has been spilled on the superannuation issue since 1975”, ASFONZ councillor Michael Littlewood says “but it seems no longer to be a defining issue in 2005. KiwiSaver aside, it looks as though the parties will be focussing on other issues in 2005.”
“That’s probably a good thing as the politics of election campaigns are peculiarly ill-suited to resolving complex superannuation issues. New Zealand does seem to have learned something from the disruptions of the last 30 years.”
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