Lifting the age of eligibility for superannuation to 67 could result in savings of at least $100 billion by 2061, consulting and investment services company Mercer says.
The double whammy of an ageing population and global financial crisis had highlighted the need for the Government to address the adequacy of retirement savings, and reduce reliance on NZ Super, Mercer says.
Lifting the eligibility age to 67, and removing disincentives to encourage the take-up of annuity products were solutions that could potentially address the problem.
In a report, Securing Retirement Incomes - Time to Act, Mercer included raising the age of eligibility as a recommended option, with an alternative being fixing the NZ Super age of entitlement as a percentage of life expectancy.
Prime Minister John Key has said he would resign as a member of Parliament if the age of eligibility for superannuation did not stay at 65.
Mercer also suggested means testing for NZ Super, and the creation of an annuity products market.
Mercer also suggested fairness could be improved by allowing people to defer the receipt of NZ Super and remain in the workforce, then receive a one-off increased payment later on.
It proposed measures to protect small KiwiSaver accounts, to encourage savings to be transferred to KiwiSaver, and encourage salary sacrificing into KiwiSaver by lowering front-end taxes on employee contributions.
Other suggestions relating to KiwiSaver included the introduction of greater incentives for higher employer contributions, and possibly introducing compulsory savings for higher income earners.
"It's time for the Government to take some decisive action and balance the politics in the current debate with what's ultimately best for New Zealand . . ." Mercer New Zealand head Martin Lewington said.
