How much capital do I need to retire comfortably on ?

[Aaron]

As you say, just pointing out the obvious. It's also obvious that income tax isn't the only source of funding for NZ Super - many taxpayers contribute more through GST than income tax. Also obvious that the the bulk of income tax has always been paid by a minority of taxpayers - hence that "average Kiwi" is a mythical creature, taxwise. Obvious too, that NZ Super wasn't designed as a welfare benefit but as a universal payment. Needless to add, I didn't find that article very enlightening.

To contribute more through GST they would have to spend more than they earn (not including rent and financial services in the spend as they are exempt from GST) so I imagine that wouldn't be many people. GST only makes up roughly 26% of govt revenue. The bulk is source deductions such as income tax, rwt etc. No one is arguing that NZ Super wasn't designed as a universal payment the issue is that it may be unaffordable in the future and if that issue is addressed now changes may not need to be so drastic in the future. I think people would rather stick their head in the sand and you are probably right I shouldn't worry about this until it is actually a problem. Like I have said in the past it will probably become a problem a couple of years after the last baby boomer attached to the taxpayer nz super tit much like the cost of tertiary education.

Also we are ignoring that govt also provides healthcare, education, roading etc etc which has to be funded as well.