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

 


KiwiSaver the bedrock for Kiwis to have the good life


2 July 2013


KiwiSaver the bedrock for Kiwis to have the good life – and a good retirement - with a few enhancements

The Financial Services Council (FSC), lobbying for an affordable, fair and attractive retirement income policy, says KiwiSaver is the key to a comfortable life after 65.

FSC, whose 21 members are managing more than $80 billion in savings and providing financial services to more than 2 million New Zealanders, says retirement savings is an urgent issue the country must recognise and address and is taking its arguments out to the community and the Beehive.

The Council has this week appointed one of the country’s leading communications managers, Susan Robinson-Derus, to further boost its efforts to have millions of New Zealanders engage in what has been described as “the most important conversation of our time”.

Ms Robinson-Derus, of Auckland, has had a successful career in journalism, corporate and consulting to multiple global organisations over the past 25 years. She has recently undertaken strategic communications work for Fonterra.

Ms Robinson-Derus would be working on ways in which to inform and engage people nationwide in the discussion on future options for retirement incomes.

The Council will also host a major forum in October involving overseas experts and New Zealand decision makers, to focus on how to more than double retirement incomes – while continuing to give people the choice to retire at age 65.

“KiwiSaver has been well supported in its first six years but we have to move now to make the scheme work harder for people so that they can have the house, the education, a lifestyle with choices and a comfortable retirement,” says FSC Chief Executive Peter Neilson.

“Recent life expectancy forecasts indicate that by 2055 New Zealand will have 1.7 million people aged 65 or older with an expected life span of 95. Superannuation, current rates of contributions for retirement under KiwiSaver and taxation cannot stretch that far so we must act now to change our financial behaviour and create the policies, including a more attractive taxation regime for long term savings, that make it easy for people to save today so they have surety for tomorrow.

“Something will have to give if we are to avoid large tax rises to pay New Zealand Super from age 65,” Mr Neilson says. “We have to look at the measures we need so people can keep retiring at age 65, and use KiwiSaver to fund the gap until New Zealand Super cuts in at a later age. If KiwiSaver became universal for all employees, this would see the pressure to pay future pensions eased, while for 18 to 40 year-olds on the median wage their retirement incomes would more than double to $48,000 a year.

“Scrapping a compulsory retirement savings scheme in 1975 is now one of the Zealanders’ greatest regrets. We need a fully informed national discussion on how we manage retirement incomes in future. KiwiSaver now involves more than 2 million employees and our research continually funds around 60% support among adults nationwide to make it compulsory.”

The FSC is undertaking further research on policy options which would make greater KiwiSaver coverage and higher contributions acceptable and affordable to those who have concerns. The proposal will be presented at the October Future of Super Conference followed by discussions with politicians to help strike a national consensus for a new multi-party agreement and provide secure policy for the future, Mr Neilson says.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news