Labour's plan to slash pensions lacks conviction

So, Mr Goff is going to slash pensions in 20 years time.

"Labour would also gradually raise the age of eligibility for New Zealand superannuation from 65 to 67. That would be done over 12 years between 2020 and 2033 giving people time to plan". NZ Herald

I agree with his plan to slash pensions but is it really a political winner when it will be the very people who you say you back and will vote for you that will be the ones that lose big-time -albeit in 20 years time when Phil will be collecting the full whack from his heavily taxpayer subsidized pension - no not really.

I don't think he has the courage of his convictions with this policy. Otherwise the lead-in time would have been much sooner. It is more of a I'm different, look at me, look at me, grab for media attention.

He got the attention today but what the heck is he going to do next to surprise us?

Go back to the asset selling that he did in the 1980s?

NEW - From Fishpond.co.nz | Think Bigger, By Michael Hill

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Darren Rickard 2011

Labour kick employers in the guts with Kiwisaver.

Interesting that Labour's policy released today that advocates making Kiwsaver compulsory and raises the employer contribution to 7% from 2% and keeps employee contributions the same is about saving.

"The KiwiSaver change "for all workers" would take effect from 2014.

Employee contributions remain at 2 per cent, "because we know families are finding it hard to make ends meet right now, let alone save".

However, employer contributions would increase by 0.5 per cent a year from 3 per cent in 2014 to 7 per cent by 2022.

"Making KiwiSaver universal will make it simpler for Kiwis to save and build a retirement nest egg", "Universal KiwiSaver also reduces our reliance on foreign lending. It builds up our own pool of savings which can be invested in New Zealand businesses and create jobs for Kiwis."

To make the policy more affordable for the Government, Mr Goff said Labour would phase in the $1000 kick start for all new members at $200 a year". NZ Herald

The $1000 every kiwisaver will get via a State handout will be borrowed from China and gather interest. The employee contributes a tiny amount and the employer gets socked the most.

The merits of saving via kiwisaver have yet to be shown. So far it has been a gigantic failure in terms of saving and returns.

The big kick in the guts though is for employers who will struggle to make this contribution and to kick our business in the guts at a time of severe recession is just plain idiotic.

The taxpayer is a net loser from this policy.

NEW - From Fishpond.co.nz | Think Bigger, By Michael Hill

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Darren Rickard 2011