| Action Needed On Super Policy |
25 September 1998
New research shows debate and publicity
since the time of last year’s super referendum has failed to encourage more people to
save. The Investment Savings & Insurance Association (ISI) has received research
indicating there is no evidence more people are saving for their retirement than were
doing so a year ago.
Findings from the Saver Pulse™
research, conducted by Research Solutions Ltd and FPG Research, included:
- More than a quarter of the population (27%) have not
started saving for retirement;
- 84% feel that Government will not provide them with an
adequate retirement income;
- Support continues to build for some form of compulsory
savings with 53% now in favour of compulsion, up from 52% and 47% over previous quarters.
ISI Chairman Ross McEwan said he was
disappointed at the lack of tangible action on the part of the Government but pleased that
the issue was now being discussed again by many of the political parties including
National.
"The Government wants New Zealanders
to lift their savings rates and plan for retirement, but seems to think there is plenty of
time to put in place the stable policy framework that is desperately needed if people are
to plan with confidence and certainty that the rules won’t change in the
future," said Ross McEwan.
"Back in June we released the ISI
Report on Retirement Savings: A Wake-Up Call, which called on the Government to use
the current ‘window of opportunity’ to address the super question. Six months on
from the report, little action has been taken to recognise the long term savings problem
New Zealand has," said Mr McEwan.
The ISI Report outlined six
key policy areas that need to be addressed if superannuation is to be put on a more stable
footing, including:
- Containing government spending;
- Policies to enhance economic growth – without
impacting on inflation or the balance of payments;
- Consistent immigration policies;
- Policies to lift individual savings rates, which include
looking at the role of NZ Super as a ‘safety net’ only;
- Policies which create ‘level playing fields’ for
all types of investment;
- Retirement policies which allow people to access the equity
in their homes.
"Where action in these areas is being
taken, it seems more driven by tactical responses to the effects of the global situation,
rather than a long term strategic focus on minimising the fiscal impact of an ageing
population," Mr McEwan said.
"A priority must be a simple and fair
tax system that doesn’t favour one type of investment over others. The Saver
Pulse™ research showed a $1.8 billion drop in the value of housing assets as prices
fell over the last quarter," said Mr McEwan. Many New Zealanders still see their home
as their savings for the future. Such a view needs to change if New Zealand wishes to see
sustainable growth in the economy and more long-term savings.
It is critical for individuals and the New
Zealand economy that our level of savings increases, but it will only do so through
stable, long-term policies from the Government.
For further information contact:
Ross McEwan
Chief Executive
National Mutual |
Vance Arkinstall
Chief Executive
ISI |
