| Annual Review 1999 - Key Issues |
THE CHAIRMAN NOTED IN HIS REPORT
THAT THE KEY ISSUES FOR THE ISI CONTINUE TO BE
retirement savings and taxation.
We have been encouraged
by active interest in the area of retirement savings following the release of the ISI
Report on Retirement Savings (The ‘Wakeup’ Report) in June 1998.
That report stimulated considerable debate on the policy
issues involved in ensuring sufficient retirement income provision for New Zealanders
retiring in the first half of next century.
Following on from the ‘Wakeup’ report the
Minister of Finance authorised a study by Treasury in association with the ISI and Inland
Revenue, to determine the levels of saving in New Zealand and the factors which determine
the pattern of investment.
The report on stage 2 of the study has recently been
released and work has started on stage 3.
The ISI also participated in the work of the Steering
Group on Net Worth and Savings Statistics which reported its recommendations to the
Government in December 1998. As a result of those recommendations the Government approved
funding of $2,589,000 over 3 years to enable the collection of data on the saving
behaviour and net worth position of individuals, families and households.
December 1998 also saw the formation of the
Superannuation 2000 Taskforce, including 2 members also represented on the ISI Board.
The Taskforce is an indication of the Government’s
willingness to re-examine the issues surrounding retirement income provision, and to
listen to the views of the public. Its success would be more assured if it had been
possible to obtain cross-party support as, without political acceptance, it will not he
possible to build a long-term policy framework on which the public can rely.
The ISI welcomed the establishment of the Superannuation
2000 Taskforce, noting that almost 10 years have gone by since the Todd Taskforce was set
up in 1990. We look forward to the possibility of some real progress in the development of
sustainable policies.
