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Raising pension age no panacea: Key

18:21 Mon Jun 18 2012
AAP

Raising the pension age to 67 wouldn't make a lot of difference to the government's finances and National won't change its policy of keeping it at 65, Prime Minister John Key says.

Opposition parties say national super will become unaffordable unless the age is raised but Mr Key disagrees.

He says "factually incorrect" information is being spread by those who compare New Zealand with other countries which are changing their policies.

"Of the 31 OECD countries, 15 are looking to raise the retirement age up to 65 or beyond 65," he said on Monday.

"Of those 15, 14 of them have a current superannuation cost of 9 per cent of GDP - ours is 4.6 per cent, we have a substantially different position to those countries."

Mr Key says some people are simplifying the debate.

"Simply raising the age to 67 doesn't deliver the economic panacea some people think it would," he said.

"It would save 0.7 per cent of GDP."

Mr Key says the government has carefully considered its policy, it has been funded and costed "and we're really comfortable with it".

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