Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

AXA CEO Sounds Warning For Workers' Savings

MEDIACOM-RELEASE-AXA-NEW-ZEALAND

AXA CEO SOUNDS WARNING FOR WORKERS' SAVINGS

New Zealand workers are at serious risk of losing access to workplace superannuation warns Ross McEwan, Chief Executive of AXA New Zealand.

In an address to members of Association of Superannuation Funds of New Zealand (ASFONZ) in Auckland and Wellington this week, Mr McEwan raised concern at the dramatic fall in the number of company superannuation schemes in New Zealand as many firms downsize, contract out, move offshore or lose interest in superannuation.

Mr McEwan said it was discouraging to see employers sidelined from the superannuation market. With 90% of New Zealand business now employing less than ten people, only 17% of these employees have any workplace superannuation.

"Superannuation is simply not a major priority for small employers and, as long as that remains the case, our market will not grow."

Mr McEwan indicated that, while most employers are genuinely concerned about their employees' retirement savings, they often face barriers in the form of government action. "If it hadn't been for increased costs, tax anomalies and compliance burdens imposed by successive governments, we would not now be in this environment of decline," he said.

However, Mr McEwan maintained that superannuation providers could no longer afford to wait for the government to get it right. He urged members of the industry and associations such as ASFONZ to assert their leadership role in actively addressing changing clients needs and promoting the logic of workplace savings among small employers. "No-one can deny that it will always be easier to deduct savings at source, rather than to prise the money out of investors' hands, " he added.



In particular, in response to recent changes in the employment relations environment, he welcomed that opportunity to work more closely with unions in offering superannuation benefits to union members.

He also suggested that the industry should be more active in providing financial advice and education at the workplace. With the economy currently experiencing strong growth, the workplace was the ideal point of focus in helping to increase the national savings rate.

In terms of the superannuation industry itself, Mr McEwan indicated that significant changes lay ahead in the face of growing competition for workplace superannuation savings. The likely result would be a wider range of innovative products and distributors and further alliances and mergers with some companies choosing to quit the industry altogether.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Sunday Fruit Fly Update: Devonport Fruit And Veg Lockdown

Work continues at pace on the biosecurity response following the discovery last week of one male Queensland fruit fly in a surveillance trap in the Auckland suburb of Devonport. More>>

ALSO:

Digital Services Tax: Government To Plan Tax On Web Operator Income

New Zealand is to consult on the design of changes to tax rules which currently allow multinational companies in the digital services field to do business here without paying income tax. More>>

ALSO:

Reserve Bank Holds Rate: Dollar Jumps As Potential Hike Wrong-Foots Traders

The New Zealand dollar jumped just over one US cent after the Reserve Bank's bias towards eventually hiking interest rates - rather than cutting them - wrong-footed traders who were more wary about global risks. More>>

ALSO:

Dolphins, Albatross, And... Four Endangered Sea Lions Dead In Nets In One Week

Forest and Bird: Four endangered NZ sea lions have been killed in commercial fishing nets in one week, making this the third day in a row endangered animals have been confirmed dead at the hands of the commercial fishing industry. More>>

ALSO: