As New Zealand grapples with the fiscal and societal challenges posed by an ageing
population the need for policies that transcend political cycles is more pressing than
ever.
A cross-party agreement on the retirement income system is something I’ve been
calling for, as the Retirement Commissioner, for some time. It’s what’s needed to
provide certainty for future generations of retirees and to encourage evidence-led
decision-making.
The bipartisan approach being delicately mooted around infrastructure is showing it’s
possible. And this week, we saw a glimmer that might also be possible relating to
retirement, when the Minister for Finance Nicola Willis invited Labour’s Finance
spokesperson Barbara Edmunds to have a discussion about NZ Super. It was quickly
played down but I encourage politicians to think hard about what the retirement income
framework looks like, how it can be improved, and how to secure a stable plan for the
future that rises above individual parties. As citizens and taxpayers we need this
stability.
NZ Super is a taonga that protects New Zealanders from poverty in old age. Currently
around two out of every five people over 65 rely on NZ Super with little or no other
income.
This means it would be difficult to change NZ Super settings without risking a sizeable
increase in pensioner poverty, particularly among groups who have smaller KiwiSaver
balances, such as women and Māori.
Treasury’s Dominick Stephens recent speech highlighted the potential impacts of what
increasing longevity might mean for public finances in New Zealand.
Every day around 80 people turn 65 and 20 people turn 85.
By 2050, these numbers will be 95 and close to 60.
The over 65s will increase from just over 900,000 now to 1.4 million in 2050.
As a share of the total population, they will go from 17% to 23%.
These numbers don’t tell us is how life in retirement is changing and going to change.
For decades, measured poverty among the 65+ population was close to zero. NZ Super
was enough to ensure pensioner incomes were above the poverty threshold.
This is not the case for all pensioners anymore.
While pensioner poverty is still lower than the population as a whole, it has been
growing. We believe that around 1 in 10 over 65s are in poverty (we’ll be getting
updated data soon). These people are more likely to be renters, single women, and
Māori.
Another big change is work. Around half of people aged 65 to 69 are in work, up from
around 15% at the beginning of this century.
For some this is because they want to; for others because they must. Should working
pensioners also receive NZ Super? Could there be a model where, say, income from
working between 65 and 69 is means tested (like Australia) and from, say 70 and
beyond it is not?
If the point of discussions around NZ Super is fiscal worries, (which are debateable),
then what other ways are available to reduce the spend than the very blunt tool of lifting
the age?
From a demography and public spending point of view, New Zealand starts in a
relatively good place.
Compared to other countries we are, for instance, only around the middle of the pack for
the age of our population.
And by international standards our government spending on pensions (and public debt)
isn’t especially high.
But this doesn’t mean we shouldn’t be thinking about what the next generation of
retirement income policies for New Zealand should look like.
So, how could we do this? And, as the problems are already well known, how do we
encourage a focus on the right solutions?
The first step is to focus on the long game. People are more likely to cooperate with a
reform process if they know where it is heading, and they think it is fair.
The second step is to look at all options, not just the seemingly easy ones. And that
means really look at them so we can see the strengths and weaknesses of each option.
Impartial and principled policy evaluation is essential.
This includes looking at who benefits policy change, and who is harmed by it, and what
mitigations need to be in place.
The third step is to not to view NZ Super in isolation. The retirement system relies on
both NZ Super and private savings. This is why I am also arguing for a review of
KiwiSaver.
While the scheme has become instrumental in encouraging retirement savings, New
Zealanders - and their employers - are simply not contributing enough. We could
improve this with a higher default contribution rate and look at increasing the
government contribution for those who do not benefit from employer matching, like the
self-employed.
It’s a bit salutary that Australian employers contribute 12% to employees' pension pots.
The consequent size of those individual pots is one reason why Australia can means
test its public pension.
And we shouldn’t forget how much uncertainty there can be over projections for the
population and the economy, and in turn fiscal costs, when looking over decades.
Reform is hard. There isn’t a silver bullet.
However, what is critical is that any major changes need to be signalled well in
advance. People can’t prepare for retirement overnight.
We need hard thinking on a wide range of options – including the thorny issues such as
income testing – and public engagement on the trade-offs inevitably involved in reform.
The three-yearly review of retirement income policy run by the Retirement Commission,
government stewardship documents, such as long-term insights briefings, and
modelling tools developed by the Treasury can all help with this.
And the fact that reform is hard doesn’t mean we should avoid it. To paraphrase the
philosopher Søren Kierkegaard, population ageing is not a problem to be solved, but an
opportunity to be taken.

Two years ago, we surveyed you, our members, to learn more about your thoughts about Kāpiti Coast Grey Power and to gather ideas and insights for the Board to concentrate on in our Business Plan. The Board at the time believed that our priorities should be focused on members’ principal concerns.
We promised to survey our members regularly, so here we are. The results will be summarised and published in the November edition of Super People. Your Board will work them into the 2024/25 Business Plan.
We ask you to rank seven topic areas for us to focus on in our lobbying efforts, in our magazine, and at our regular social meetings.

Please click the following link to complete this survey on line:

https://forms.gle/o79srDnesjHjRF7S9

Kapiti Coast Grey Power's financial year ends on 31 December.
Our Annual General Meeting to report on this was held on Wednesday 24 April 2024.
At that meeting, the financial statements for the 2023 financial year were accepted, Board members elected for the following 12 months, and membership fees set for the 2025 membership year.

2024 Election of Board Officers
As at the closing date of 19 April 2024, the following nominations had been received for Board Officer positions:

• President: Roger Booth
• Vice President: Enrico Vink
• Secretary: Brett Sangster
• Treasurer: Brett Sangster
• Other Board Officers: Ian Burtt, Emiliia McDonald, Sonia Pratt, David Ogden.

As the numbers of nominations did not exceed the vacancies for any position, no election is needed.
​
2025 Subscription Fees
Current membership fees are:

• Single membership - $25.00
• Combined membership - $35.00

No change is recommended for membership fees for the 2025 year.

Copies of the Financial Performance Report and the independent financial reviewer's statement relating to that Report are attached as downloadable files.

Kāpiti Coast Grey Power (KCGP) is urging Kāpiti Coast District Council and Greater Wellington Regional Council to restrict any rates increase to New Zealand’s 4.7% consumer price index.

KCGP President Roger Booth said today that recent reports indicate the district council is planning a 12.5% increase, with the regional council also suggesting a double digit hike.

“This is unacceptable.

“The councils, as our community leaders, should be showing the way for fiscal restraint, not blithely passing their costs on to ratepayers who can ill afford it,” Roger Booth said.

“ASB economists say the average New Zealand household will have to find an extra $70 a week in 2024 just to cover their costs.”

Kāpiti Coast Grey Power advocates for a membership of some 2700 over-50s, but Booth believes that they speak for the whole community. “In our population of 55,000, 50% are over the age of 50,” he said.

“We’ve reminded both councils that increases in council rates impact not only property owners but also those renting as well as the businesses that employ our community. Insurances, borrowings, prices of foodstuffs, materials and even the separate rubbish collection service have all gone up for every household.

“It’s an ongoing spiral where increased costs are dumped on individuals facing exactly the same financial pressures as Councils.

“Many Kāpiti residents, especially those on fixed incomes, cannot afford the increases and are going through the painful exercise of where to pare back. And sometimes that means going without meals or relying on the Food Bank, not turning on the electricity, dipping into KiwiSaver accounts for daily needs and replacing clothing at the Op Shops.”
​
Roger Booth said that public consultation on rates rises is intended to take place in March. “Kāpiti Coast Grey Power will be at the forefront of pushing for councils to cut their cloth and care for their community – and put their pet projects on the shelf.”

​The rising cost of postage and printing has dramatically impacted on the cost of producing and mailing Grey Power Federation’s quarterly magazines. Kāpiti Coast Grey Power is an affiliated Association of Grey Power Federation, and its magazines will continue to be posted to its financial members.
 
This year postage alone has cost the Federation $134,419 for 3 issues – potentially around $180,000 for the year. With escalating postage costs, the magazine postage now consumes over 60% of the capitation fees from the membership, leaving far less for Grey Power Federation’s core business of advocating for older people.
 
For those members who are internet users, the Federation would like to encourage you to consider receiving your Grey Power Federation magazines online. You will be advised by email when a new issue is available, but you can visit the site at any time in between to keep informed.
 
While not for everyone, there are several advantages for those who choose the online option:
 

• Quicker delivery – the latest Federation magazine can be in your email inbox a week or more before the mailed copy arrives.
• Better for the environment – no wasted print, plastic, or delivery-related carbon emission impacts.
• Additional information and updates – once enrolled for the online version, members can opt to receive regular Grey Power Federation news updates and other information of interest.
• Savings to the Federation – four magazine issues per year can be continued, and savings can be invested in advocacy and membership services.
• More in-depth coverage – occasionally lengthy magazine stories and illustrations must be condensed to fit in the printed magazine. The digital version enables some content to be expanded upon and linked for reading on the magazine website for internet users who want more.

 
You can have a look online to see the smart format and layout of our magazine and test how easy it is to use Click here to view Magazine.
 
You can switch to the online version simply by providing your name, membership number, and email address on the following form – CLICK HERE
 
Grey Power members are encouraged to try the digital version. If they try it and decide it is not for them, they are free to go back to receiving the magazine in hard copy.
 
The Grey Power Federation will never require all members to be on email. Hard copies will always be available to members who, for whatever reason do not want a digital copy. The choice is yours.
 
 
Jan Pentecost
President
Grey Power NZ Federation

Our financial statements for our 2022 financial year ending 31 December 2022 have been independently reviewed.
These statements can be downloaded from the following link.

The Raumati South Repair Café will be running again, for the fifth time, on 23 July 2023, this time hosted at the Raumati South School from 10am-1pm.
This community-led event provides a space and support for volunteer experts to help the public fix their broken stuff. This includes sewing & mending, electrical repairs, IT troubleshooting, bicycle maintenance and small repairs, garden tool and knife sharpening, jewellery repairs, and, where possible, general repairs.
During the May 2023 Repair Café, 79 participants brought 157 items for repair or advice. The Raumati South Scout Hall was abuzz with people lining up clutching items in disrepair. Many (74%) were able to leave the hall with freshly fixed things, and perhaps a sweet treat from the cafe run by a local school classroom as a fundraiser. In May, the event prevented 202kg of waste from entering the landfill and prevented 1,356kg of carbon dioxide emissions.