MEDIA RELEASE
19 December 2003
PRG Report Welcomed
The Investment Savings and Insurance Association
("ISI") today welcomed the release of the Periodic Report Group's Retirement
Income Report 2003.
The industry will need some time to study the report, and will
comment later on the detail, but ISI is encouraged to see the priority given to personal
savings.
'The PRG Report has recognised the key position of New Zealand
Superannuation in planning for retirement for those people who are unable to save, but we
welcome the importance it has given to the encouragement of personal savings, said Simon
Swanson, Chairman of ISI.
'We are particularly pleased to see the recommendation for a
Work-based Savings Group, said Mr Swanson.
This is in line with the recommendations of the ISI and the
outcome of the Saving NZ Forum held in July. It recognises that the need to increase the
level of personal saving in New Zealand is too urgent to leave to 6 yearly Periodic
Reporting Group reviews, and acknowledges the contribution that can be made by groups such
as employers, unions and the financial services industry.
"ISI strongly supports the PRG’s recommendations that
existing tax disincentives which create barriers to savers should be removed. At the very
least a neutral taxation regime must exist for savers."
'Changes in lifestyle and work patterns (such as marital
breakdown or redundancy) mean there is a real risk that today's workers will not have the
same level of assets when they retire as current retirees have, noted Mr Swanson. The
recommendations of the PRG Report should give the need for personal savings a much higher
priority in public policy, and signal the Government's commitment to helping New
Zealanders improve their level of personal savings.'
"The approach of the PRG in detailing specific
recommendations to form a work programme provides a platform for progress", said Mr
Swanson.
ENDS
For further information contact:
Simon Swanson, Chairman
