06-11_1000_PromptB3-9_OECD_NZSuperReport_GovernmentResponseCheck

The OECD Economic Surveys: New Zealand 2026 was launched at Treasury on 7 May 2026. Key superannuation/ageing recommendations: - Link pension eligibility age to life expectancy with a maximum age of 69 - Means-test super for the top 10% of earners - Tax reform: switch from current Taxed-Taxed-Exempt (TTE) to Exempt-Exempt-Taxed (EET) system (aligns with 31/38 OECD countries) - KiwiSaver expansion: increase contribution rates, restrict first-home withdrawals - Ageing will push NZ's health and pension costs up ~5% of GDP by 2060 - Without reforms, public debt on 'an unsustainable path' toward ~200% of GDP - Health and long-term care spending pressures intensify as NZ's population ages - A simple age increase could be regressive for Māori and Pasifika who have shorter average life expectancy - Transitional arrangements and redistribution needed for vulnerable groups - Support for older workers in physically demanding roles - No plans to raise eligibility age before 2026 election - Rejected tax changes: 'We are trying to get the books back in balance so radical tax reforms that require a deficit on the government books are not something we are exploring right now' - 'We are going to have to do something. If you're sensible, you listen to these facts.' - Demographic breakdown: 1960s: 7 workers per pensioner → today: 4 → 2065: 2 - Super spending currently ~16% of every tax dollar → projected >20% - **'They don't need to be as dramatic as the OECD suggest