When I’m 64: What do New Zealanders want in a retirement income policy?

Abstract

It is difficult to choose policies when people have diverse preferences over outcomes and many alternative policy settings are available. To do this well, policymakers must understand underlying preferences and rank policies according to these preferences. In this paper, we use multi-criteria decision analysis techniques to understand the relative attractiveness of retirement policy reforms in New Zealand. Using a nationally representative sample, we estimate individual preferences over seven aspects of retirement policy, characterise the diversity of these preferences, and rank three different policy options. We find that a policy which raises taxes to prefund the government retirement income scheme would be supported by a majority of people of all ages and income groups, and would be much more popular than a policy that raises the age of eligibility. The results suggest multi-criteria decision analysis has considerable potential to help policymakers develop policies that are aligned with people’s preferences. Show more