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


ING applauds savings initiative

ING applauds savings initiative

ING, one of New Zealand’s largest managers of superannuation monies, has reiterated its support for the positive steps government is taking to assist New Zealanders in saving for their retirement.

The praise comes after details of the Government’s proposed workplace savings scheme, KiwiSaver,were announced yesterday. The scheme aims to encourage those in paid employment to start or supplement a personal long-term savings account.

New managing director of ING (NZ) Limited, Marc Lieberman, says the workplace is the ideal place for most New Zealanders to get into the savings ethic in a relatively painless way.

“Numerous overseas models support this approach. However, it has to be recognised this is only a first step on the path to what we regard as the need for eventual compulsion.

“The same flexibility designed to get as many people involved in KiwiSaver as possible – namely the ‘opt in’ feature – could also be the scheme’s downfall if savers are later tempted back into the consumption mindset and choose to stop contributing.”

He also pointed out that while the scheme had the added merit of allowing savings to be used towards a first home, KiwiSaver has to be seen primarily as a long-term retirement scheme and not a fast-track home-buying plan.

Mr Lieberman noted that although the Government had reinforced its commitment to KiwiSaver through yesterday announcements, there were still many questions around the detail, including the process for electing providers and establishing default schemes.

“With 01 April 2007 only just over a year away, there is still much to be resolved by officials, the Ministry of Economic Development, product providers and employers.

“Given all of this, together with the planned review of the tax treatment of managed funds, there’s still a lot of work to be done. Nevertheless, these are necessary and positive steps if we want to improve our savings record and more importantly the living standards for those in retirement.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


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, Including Xtra: 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news