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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news