| Long Term Certainty Essential for Super |
The Investment Savings & Insurance
Association (ISI) is pleased that Government is taking superannuation seriously and
welcomes the opportunity to be part of any group that is formed to look at superannuation
issues, provided it has broad-based political and public support to ensure certainty and
stability over the long term," says Vance Arkinstall, Acting Chief Executive of ISI.
"We have
always advocated the need for clear and sustainable policies on superannuation that have
broad acceptance. We also invested considerable time and resources to produce a
comprehensive research report into retirement savings, which built on the work of the Todd
Task Force and Periodic Reporting Groups," Mr Arkinstall said.
The
ISI Report on Retirement Savings: A Wake-Up Call outlined the fiscal risks and economic
problems posed by New Zealand’s ageing population. The conclusions which flow from
this research seem stark and obvious and are based on six key policy areas that needed to
be addressed if NZ Super is to be put on a more stable footing:
- improving economic growth;
- improving the efficiency of
private sector investment decisions;
- limit government spending;
- consistent immigration policies;
and
- removing distortions which
influence private savings;
- enhance access to adequate
retirement income for those in greatest need.
The
ISI Report confirmed the finding of the Todd Reports – that while we have time to
address the issue of future costs of New Zealand Superannuation, the current ‘window
of opportunity’ should be used constructively to set in place long term plans.
"The longer we delay, the more drastic the action which would be required."
"The public
have consistently indicated that they want certainty and stability to plan for their
retirement with confidence the goal posts won’t be moved at some later point.
If we do not take
this opportunity and put aside political point scoring we face a real risk of returning to
the super auctions that characterised general elections of the past," said Mr
Arkinstall.
Editors Note: The
ISI is an industry association representing 29 major institutions in the financial
services sector. Its members manage around $20 billion in investments on behalf of some
1.5 million New Zealanders.
For more
information contact:
Vance Arkinstall
Acting Chief Executive
ISI
