Big savings in super?
Tens of thousands of well-off pensioners are claiming up to half a billion dollars in superannuation every year.
With government debt at more than $60 billion, critics say the wealthy are asking their children and grandchildren to fund their so-called retirement.
Ministry of Social Development figures revealed more than 26,000 people with total income of more than $70,000 a year claimed superannuation last year. At current rates, this could add up to $570m a year before tax..
From last year in the Herald via me
Imagine the public outrage if it were discovered that more than 80,000 New Zealanders were receiving wages, salaries and investment incomes of more than $6 billion a year, but were also receiving a benefit from the Government.
…
Income figures this week from Statistics NZ show more than 80,000 New Zealanders over the age of 65 receive wages, salaries and investment returns of more than $6.5 billion a year while claiming NZ Super.
The benefits to those 80,000-plus seniors are costing poorer taxpayers at least $1.3 billion a year. Many of these beneficiaries will be retired judges, politicians, chief executives, doctors, diplomats and lawyers who are well able to look after themselves.
It seems the problem is only half as bad now, without any policy changes. Either that, or people really don’t know where they would like to draw the line.
Thomas Lumley (@tslumley) is Professor of Biostatistics at the University of Auckland. His research interests include semiparametric models, survey sampling, statistical computing, foundations of statistics, and whatever methodological problems his medical collaborators come up with. He also blogs at Biased and Inefficient See all posts by Thomas Lumley »
The recent one looks at the 26,000 people earning $70k or more a year and collecting super. The older one looks at the 80,000 people who receive super plus money from somewhere else. So a generalised look at the issue, then one which focusses of those who clearly do not need super.
The only issue I can see is the claim that ‘many’ of the 80,000 are retired judges and so forth. Really? Many? I accept that judges might live longer than average, but they’re still a tiny minority.
11 years ago
In many cases they will be funding their own superannuation, at least partially. A single person living alone will be getting $19k per year after tax in super. If you earn $70k per year you are paying tax of $14k per year, and if you earn $100k you are paying tax of $24k.
11 years ago
Actually, if you earn and spend $70k a year you are paying tax of more like $24k. GST is just as real as income tax. But I don’t see why that should all be counted as going towards your super and none towards the rest of public expenditure.
11 years ago