Pension crisis looming

New Zealand may have to take drastic measures, such as slashing benefits, increasing taxes and moving the eligibility age to 68, to ensure the survival of the government's pension scheme
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|hrreporter.com|Last Updated: 03/10/2004

N

ew Zealand is facing an age crunch that could lead to increased taxes, longer working lives and shrinking pensions, according to a report prepared for the government.

Drastic steps could be necessary to pay for the future retirement of young New Zealanders. The numbers of those aged 65 or more will grow from the current 12 per cent of the population to 27 per cent in the next 50 years, according to published reports in New Zealand.