7 May 2014

Elderly's taxes to pay for own super

6:21 pm on 7 May 2014

The former Minister for Senior Citizens, John Carter, says new research on older people in New Zealand shows they they'll be funding their own superannuation in coming decades, through their taxes.

John Carter.

John Carter. Photo: Leonie Carter

Mr Carter, who is now the mayor of the Far North, said a recent update to a report he commissioned in 2011 showed the country could afford to keep the retirement age at 65 for at least four decades.

Mr Carter said growing numbers of baby-boomers were staying in the workforce after 65, and by 2051, senior citizens would be paying nearly $15.6 billion a year in taxes.

He said far from being leeches on society the elderly will be funding their own pensions, and creating a surplus.

The updated Business of Ageing report projects that 31 percent of people over 65 will still be working, by 2051.

Last year, 612,000 people were receiving superannuation, at a cost of $10.2 billion.

The report can be found at on the Ministry for Social Development website: businessofageing@msd.govt.nz