The Mercer international review of international pension schemes has just been published. The top scoring countries with an A rating were Netherlands, Iceland, Denmark & Israel – each of which were classified as a “first-class and robust retirement income system that delivers good benefits, is sustainable and has a high level of integrity.”
While New Zealand, received an overall B Rating it has fallen in the international ratings from 25th to 28th on the “Adequacy” assessment. . “The primary objective of any pension system is to provide adequate retirement income. Hence, this sub-index considers the base (or safety-net) level of income provided by each system as well as the net replacement rate at income levels ranging from 50% to 150% of the average wage.”
Grey Power continues to advocate for those wholly dependent on NZS in retirement as being insufficient to allow a retiree to live in dignity especially if they are living alone or renting. Accommodation supplement eligibility and subsidy rates have needed an urgent overhaul for over 5 years.
For more background read the recent article from RNZ, or the full Mercer Report.