Policy position papers
We explore each of eight objectives of retirement income policy in a series of position papers which set out our view. The policy position papers are intended to help promote debate and understanding so New Zealand develops a consensus on what constitutes sustainable retirement income policy.
Retirement income policy objectives
The current review of retirement income policies, due to report in late 2013, considers the balance between eight separate objectives which overlap and sometimes even compete with each other.
We want to promote understanding and debate about these objectives, and to this end have prepared a series of papers which outline our position on each one:
- Income support: alleviate old age poverty and hardship
- Wellbeing in retirement: promote positive and active ageing
- Encouraging personal responsibility, individual choice and control: voluntary saving for retirement
- Longevity risk pooling: share protection against the risk of outliving savings, i.e. longevity risk
- The citizenship dividend: build and maintain social cohesion and national identity
- Lifetime consumption smoothing: maintain accustomed living standards
- Intergenerational equity (cohort self-funding): ensure equity or fairness between generations
- Fiscal restraint and investment: promote economic growth and efficiency
New Zealand has chosen a unique mix of these objectives for its retirement income framework, which is often admired by other countries. While this mix may change over time, overall policy needs to remain sustainable without frequent or unexpected changes. Future costs will have to be manageable and it is important to have a broad public consensus about policy directions.
We have also summarised the key ideas on how to ensure the overall sustainability of New Zealand’s retirement income policies.
Our position papers are mere “entrees” to what is quite a complex main course. You may be satisfied by reading the papers, and ready to contribute your thoughts. Or you may wish to sample further, by checking out either some of the references given at the end of each paper or New Zealand Treasury’s Long Term Fiscal process.
Download the policy position papers
You can download and print the policy position papers.
Income support (PDF 345.75 KB, Jan 2013)
Wellbeing in retirement (PDF 323.85 KB, Jan 2013)
Encouraging personal responsibility, individual choice and control (PDF 315.68 KB, Jan 2013)
Longevity risk pooling (PDF 330.29 KB, Sep 2013)
Citizenship dividend (PDF 312.66 KB, Sep 2013)
Lifetime consumption smoothing (PDF 322.11 KB, Sep 2013)
Intergenerational equity (cohort self-funding) (PDF 329.86 KB, Sep 2013)
Fiscal restraint and investment (PDF 488.49 KB, Jan 2013)
Overall sustainability (PDF 345.58 KB, Jan 2013)