MEDIA RELEASE
FOR
IMMEDIATE RELEASE
11 June 1998
ISI
Report - A "Wake Up Call"
An ISI (Investment Savings & Insurance
Association of New Zealand Inc) report to be released next week builds on the work of the
Todd Task Force and Periodic Reporting Group, and aims to address the complacency that has
developed around the retirement income issue.
"ISI members are concerned that the
work of Jeff Todd has been interpreted by many people to mean there is plenty of time.
That is a risky, and ultimately wrong, assumption," said Roger Gill, Chief Executive
of the ISI.
"What we have is a ‘window of
opportunity’ which gives us time to act. If we don’t use that time
constructively it is more than likely some future government will have to take drastic
action to resolve the issue," Mr Gill said.
The ISI wants to put the retirement income
policy back on the political agenda and stimulate public debate on policy options. That
debate should include issues such as the role and future structure of NZS. If New
Zealanders want the status quo to remain they need to understand what that could mean in
terms of cost.
"What we will be saying in the report
is that we have an opportunity to get things right and the sooner action is taken the
greater the benefits for all New Zealanders, at the least cost," Roger Gill said.
"We will be proposing a sound policy
framework and issuing a strong challenge to Government to give the development of stable
and long term savings policy the priority it demands."
The fallout over the current policy
uncertainty is coming through in surveys of public attitudes towards retirement savings.
The latest Saver Pulseä research* shows a drop in
the number of people who believe that saving for the future is extremely important, from
41 per cent in the previous quarter to 36 per cent this quarter.
Other findings were:
- The vast majority of those surveyed do not believe that the
Government will provide them with an adequate retirement income;
- Three out of four believe they will have saved enough to
support themselves by the time they retire;
- More than half (52 per cent) support some form of
compulsory saving scheme.
The ISI is an industry association
representing 30 major institutions in the financial services sector. Its members manage
around $20 billion in investments for some 1,500,000 New Zealanders.
* Survey involved 711 interviews, randomly
selected adults over 18 years of age, from throughout NZ. Survey conducted from
January-March 1998.
Roger Gill
Chief Executive
ISI
