This report highlights the unprecedented fiscal challenges that New Zealand politicians will face in coming decades.
The report recommends that:
- The government better manages expectations about what New Zealand can afford in the future by mapping out the types of spending and taxation policies that will change.
- Taxes and government spending are changed soon to start spreading the costs of the ageing adjustment over several years. Broadening the tax base and reorienting welfare back to those most in need are good starting points.
- Political parties seek a bipartisan agreement on addressing New Zealand’s future superannuation costs.