MEDIA RELEASE
5 November 2003
GOVERNMENT MOVE SUPPORTED
The Investment Savings and Insurance Association supports the
Government’s initiatives to develop retirement savings for state sector employees.
"Saving by deduction from salary is clearly the most
effective and efficient method for most New Zealanders to create personal savings,"
said Vance Arkinstall, Chief Executive of the Investment Savings and Insurance Association
(ISI).
"The Government is sending a powerful signal to the country
on the importance of personal saving by making it easier for state employees to put a
little aside out of their pay," said Mr Arkinstall.
"Traditional company superannuation has been in decline for
a decade now. This is the first positive sign that the Government wishes to reverse that
trend. The announcement made by Government establishes a model for all employers to adopt.
It is to be hoped that private sector employers will be encouraged to offer similar
savings packages," Mr Arkinstall said.
As New Zealand enters an era of an ageing population, it is a
concern that New Zealand Superannuation forms the major portion of retirement income for
the majority of New Zealanders. At best, New Zealand Superannuation will only provide the
basic necessities for those who have enjoyed an average income or better. The only way for
most New Zealanders to maintain the lifestyle they can enjoy and continuation of some
luxury in retirement is by raising individual savings. Government efforts to encourage
increased personal saving responsibility in the state sector is to be applauded.
Ends
For further information contact:
Vance Arkinstall, Chief Executive
Investment Savings and Insurance Association
