Mike's Minute: We can't get out of our own way on Super

From the "we can't get out of our own way" file comes the question, as posed this week by the Retirement Commissioner, as to whether people who have money in the bank should get the pension. 

The first part that is wrong with that is I thought we had decided many a decade ago, rightly or wrongly, that Super is an entitlement. 

Its trigger, rightly or wrongly, is age, therefore the other criteria you might like to add to the equation like height, weight, job, brain power or savings, are null and void because age is what does it. 

So are we changing that, are we? Because that is the inference in the question. 

The inference is also this sneering socialist bend some people have around success. 

"Don’t be too successful" is the message, and that’s what savings generally are. You had a plan, you worked hard, and you put a few dollars aside. 

Interestingly the numbers are depressing. This is where the question came from. 

There are 33,000 over the age of 65 who earn between $100-200k a year. There are 9,000 who earn more than $200k. 

That’s not a lot of people. It shows you how poorly paid we are, how bad at saving we are and how expensive life is to stop you saving. A whole bunch of stuff leads us to not being a very well-off sort of country. 

I have said this many times – I'm not fussed. I didn’t join KiwiSaver and I'm not relying on a pension. 

Why? Because when I started work in 1982 it was very well established that the pension may or may not be around at all, so why take the risk? And in 1982, on the minimum wage as I was, I had 45 years to get my act together and do something about it. 

The problem with keeping on asking these questions is it messes with people and their intentions. 

Governments have been bad enough already with their constant changing of the rules and their contributions, the last thing we need is thought bubbles on what should be a long term, leave it alone, get out of the way, understanding among us all that the pension is our society's recognition of a life's work. 

Change the age if you want. But penalising success is the opposite of what we want to promote. 

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Episode Transcript

Speaker 1 (00:00):
From the we can't get out of our own wavefile
comes The question has posed this week by the Retirement
Commissioner as to whether the people who have money in
the bank should get the pension. Now, the first part
that is wrong with that is I thought we had
decided many a decade ago, rightly or wrongly, super is
an entitlement. It's trigger rightly or wrongly is age. Therefore,

(00:21):
the other criteria that you might like to at a
later stage add to the equation, I don't know height, weight, job,
brain power or savings are null and void because age
is what triggers it. So are we changing that? Are
we all of a sudden because that's the inference in
the question. The inference is also this sneering socialist bent
that some people have around success. Well, don't be too successful,

(00:42):
and that's what savings generally are. You had a plan,
you worked hard, you put a few dollars aside. Interestingly,
the numbers are depressing. This is where the question comes from.
There are three or thirty three thousand who earn each
year between one hundred and two hundred thousand dollars a year,
nine thousand more than two hundred thousand. Now that's actually
not a lot of peace people. It shows you how
poorly paid we are in this country, how bad at

(01:03):
saving we are, how expensive life is. To stop your
saving in the first place, a whole bunch of stuff
leads us to not being a very well off sort
of country. Personally, I've said this many many times. I'm
not fast do whatever you want with superannuation. I didn't
join KEYI saver. I'm not relying on a pension. Why
Because when I started work in nineteen eighty two it
was very well established even then that the pension may

(01:24):
or may not be around at all. So why take
the risk in a nineteen eighty two as I was
on the minimum wage, as I basically worked out, I
had forty fivesh years to get my act together and
do something about it. The problem with keeping on asking
these questions is it messes with people and their intentions.
Governments been bad enough already with their constant changing of
the rules and their contributions. Last thing we need is

(01:45):
thought bubbles on what should be really a long term
leave it alone, get out of the way. Understanding among
us all that the pension is our society's recognition of
a life's work, change the age if you want, but
penalizing success is the opposite of what we want to
actually promote. For more from The Mic Asking Breakfast, listen

(02:06):
live to news Talks it B from six am weekdays,
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