fiscal sustainability

The case for raising the age of eligibility for NZS; and how we can do it. 

I support raising the age of eligibility for NZS but not, primarily, for reasons of fiscal sustainability. Rather it needs to be increased for equity reasons. Longevity is increasing. When the Old Aged Pension was introduced in 1898, life expectancy at the age of 65 was 13 years; today it is 20 years, and it will continue to rise.

As times goes on the government will spend more on healthcare. That means higher taxes. Is there an alternative?

I was on the Treasury external panel which advised on its last Long Term Fiscal Projections. The great challenges arise from rising demand for government funded services and the aging population.