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Proposal to Increase Superannuation Eligibility Age

Diane Maxwell, Retirement Commissioner is arguing to lift the eligibility age for the NZ Superannuation to 67 by the year 2034. Maxwell said: "The increase in eligibility age reflects the fact that people are living longer and receiving New Zealand Superannuation for a longer time. Longevity has increased for men and women, with average life expectancy going up by more than 20 years over the past century." Click here to read more about Maxwell's proposal.

In fact, 67 probably isn't high enough. Given that 65 was set when the proportion of people reaching that age was more like the proportion reaching their late eighties today. I am glad we live in a society where people don't have to routinely work that long, but we do need to be more careful with the money we spend supporting people as longevity lengthens. Having said that, other safety nets should be available for people who get disabled earlier. Having good insurance definitely helps. Insurance planning should probably be geared around a working life finishing at 70 these days, rather than 65. 

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