Friday, May 29, 2009

Killing superannuation

How much of a hole does National's "suspension" of payments into the Cullen Fund make? A whopping $35 billion:

“Closer analysis of Treasury’s figures by Labour has revealed that in 2031, when withdrawals from the fund commence, the fund will be short by $35 billion dollars,” Phil Goff says.

“It shows that on top of the shortfall of $19.5 billion of contributions to the fund, earnings and interest of around $15 billion will also be lost.

“This decision has effectively killed the Fund which many New Zealanders are relying on for their retirement.

The graph speaks for itself:

That's quite a hole - and if contributions are not restarted, it is likely to mean the death of New Zealand Superannuation as we know it. National just tried to kill your pension - and they weren't even honest enough to say it.