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


Savings Crisis Could Be Worse Than Power Crisis

Save Or Sink - Savings Crisis Could Be Worse Than Power Crisis

Sovereign today challenged other financial services institutions, the Government and New Zealanders to wake up to a serious savings issue facing the nation.

“Our saving behaviour is spiralling towards a serious crisis despite New Zealanders’ belief in saving, the great work of the Retirement Commissioner in trying to alter attitudes towards saving and various other government initiatives,” says Vena Crawley, Head of Marketing, Sovereign.

“We have an ageing population who believes in saving but aren’t actually doing it, while a younger generation is emerging loaded with debt for the first time in New Zealand’s history. The younger generation, which is a smaller group, is faced with paying off debt early in their working life, saving for themselves and paying for a growing number of retiring New Zealanders.

“Recent industry research has consistently shown that New Zealanders are not saving, there is a growing number who believe the Government will provide an adequate retirement income and New Zealanders have no idea how much they need to save for their retirement.

“There is a great need to address this issue with the same tenacity we are addressing power savings, because it has the potential to have a long-term adverse effect on the economy and New Zealand. That’s why Sovereign is in full support of the Saving New Zealand project launched today by the Investment Savings and Insurance Association (ISI),” he says.
New Zealand has one of the lowest private savings rates of any OECD country. New Zealand’s savings as a percentage of GDP declined from 3.8% in 1996 to 1.1% in 2000.

“Coming up with a savings framework for New Zealand is only possible through partnership and buy-in from a wide cross section of New Zealand—it will not be achieved if it is only backed by one group or sector,” says Mr Crawley.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news