According to investment specialist Mercer, the Crown can save up to $100 billion over 30 years, if the age of eligibility for superannuation is raised to 67, to deal with longer life-spans and falling fertility rates.

Mercer is of the viewpoint that the dire need for the Government is to look at the adequacy of retirement savings; and reduce the reliance on Super, clearly highlighted by the double whammy of an ageing population and global financial crisis.

Martin Lewington, head of Mercer New Zealand said: "It's time for the Government to take some decisive action and balance the politics in the current debate with what's ultimately best for New Zealand particularly in regards to `hot potato' issues such as raising the eligibility age for NZ Super."

He added: "We need a holistic not a piecemeal solution, from a consolidated government body to address the issue of an ageing population and the challenge of ensuring the adequacy of our retirement income system."

Mercer says that there would be crucial effect on the government's ability to support pay-as-you-go super, against the backdrop of a rapidly ageing population, where the ratio of the working population to retirees will shrink from its current level of four to one, to two to one by 2051.

Mr. Lewington said that the obligatory framework and products to aid people deal with their money, via their retired life, were lacking in New Zealand, with many retirees drawing down a lump sum on retirement.

He added: "We are living longer, which is obviously good, but this also increases the risk of running out of money before we die."