The Alliance Party has released its Retirement and Aged
Care Policy, which keeps the pension universal, lifts the
couple rate to the highest level the law allows, and commits
to ending the asset test for rest home care.
The
Alliance’s health spokesperson, Ethan Gullery, says too many
people spend their whole working life saving for retirement
only to end up losing their independence.
“People
spend their whole life working and saving to own their home,
and then they end up having to spend it on care before the
state will help.”
Under current policy, a person is
only entitled to government funding for rest home care once
their assets, including the family home, have fallen to
$300,811. With care costing around $1,500 a week, someone
whose home and other assets are worth $650,000 would pay for
about four and a half years of care before the state
contributes.
Mr Gullery says Super already shows a
better way to do it.
“We don’t means test Super.
Everyone gets it, and that’s a big part of why it’s
survived. Long-term care should work on the same
basis.”
The policy includes a long-term approach to
supercharge KiwiSaver into a true superannuation fund,
completing the promise of the 1974 Superannuation Act. The
first step includes a $10,000 endowment to new KiwiSaver
accounts, ringfenced for retirement or terminal
illness.
“The repeal of the Superannuation Act in
1975 was one of the worst economic decisions ever made in
this country, and we have been playing catch up as a nation
ever since. The best time to set up a superannuation system
that works was decades ago – the second best time is now. As
no one else will take up the mantle of forward-thinking
people like Norman Kirk, the Alliance Party will do so
proudly.”
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“Our changes to KiwiSaver will take
decades to bear fruit in full, but will ensure future
generations are supported to live in dignity and security
through their retirement.”
The Alliance Party also
promises to increase New Zealand Superannuation for couples
to 72.5 percent of the after-tax average wage. Parliament
put that upper limit in the law. The Alliance would use it,
and adjust Super every quarter.
The policy
also:
Keeps the age of entitlement for Super at
65
Funds independent advocates to support older people
dealing with agencies and providers
Sets up a
dedicated Ministry for Senior Citizens
“We are a
workers’ party,” says Mr Gullery. “And after working most of
their lives, workers deserve the security of knowing that
they can enjoy a healthy and happy retirement without the
fear of financial
insecurity.”
