MEDIA RELEASE
FOR
IMMEDIATE RELEASE
9 March 2000
GOVERNMENT RIGHT TO TACKLE SUPERANNUATION
"The Investment Savings & Insurance Association agrees
that New Zealand faces a major challenge from an ageing population as expressed by the
Minister of Finance in his Budget Policy Statement. The importance of recognising that the
ratio of those aged 65 to those in the working age population would increase over coming
years, was a key finding of our research report "Wake-Up Call","
said Vance Arkinstall, Chief Executive of the Investment Savings & Insurance
Association (ISI).
"ISI research identified that to reduce the fiscal and
economic problems resulting from an ageing population a number of policy areas need to be
addressed. These include the need to raise economic growth, limit Government spending,
avoid distortions which influence private savings, develop a consistent approach to
immigration, enhance the efficiency of private sector investment and enhance access to an
adequate retirement income for those in greatest need," said Mr Arkinstall.
"Both Government provided New Zealand Superannuation and
private superannuation have been the subject of numerous changes over recent years. This
has created complexity and uncertainty which has made it difficult for some people to
enter a long term savings plan with confidence. It is essential further change is part of
a long term sustainable policy that has widespread public and political consensus. It is
crucial that we achieve a foundation that will not be subjected to ongoing political
involvement," Mr Arkinstall said.
"The industry will continue to work with the Government and
all political parties to remove the tax disincentives that currently exist which
discourage savings. It will continue to be important for New Zealanders to develop
voluntary savings plans in addition to any compulsory or Government superannuation if they
are to achieve the living standards that they seek during their retirement years,"
said Mr Arkinstall.
Ends
Vance Arkinstall
Chief Executive
ISI
