Minister urges National Women to vote YESYouth Affairs
In a speech to the Picton National Party Women's Club, the Hon Deborah Morris urged members to vote "yes" for the Retirement Savings Scheme.
Deborah Morris believes that we need to focus the debate on the Retirement Savings Scheme on facts and not political rhetoric. She acknowledged the Todd Taskforce report, and recent comments by Simon Upton and Roger Sowry, who all agreed that the current NZ Super scheme is not sustainable in its present form past the year 2015.
"Young people will be up against a big voting block at the coming referendum. Those under 18, will not even have a say. Young people have the most to lose out of a NO vote.
"The young generations don't believe that the State will or should be there for them in retirement. Young people resent giving more and more of their independently earned money to a government system that doesn't work and which they can't see themselves benefiting from.
"It's a sad fact that more young people believe in UFOs than believe they will have a state funded pension!
"Some have claimed that young people couldn't afford to pay into a Retirement Savings Scheme. Let's look at the example of a person on a low income who is earning over the $5000 threshold. The chances are that that person will have to "pay" more than they are now - about $2.60 a week. That's about the price of a magazine. But what you have to remember is that by the time that person is ready to retire at 65, their weekly savings of $2.60 will have contributed to the accumulation of savings of $120,000 which will buy an annuity.
"I don't believe that you should count saving as expenditure.
"The only options proposed by opponents of the Retirement Savings Scheme are to increase taxes, raise the age of eligibility to at least 68 years, decrease the level of NZ Super, and introduce strict means testing. Quite frankly, I'm not prepared to sit back and offer future generations a dud deal like that," said Deborah Morris.