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.”
“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 per cent 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.”
The Alliance
