Steady improvements for retirement system

Media release

9 October 2013

Steady improvements for retirement system

BusinessNZ has welcomed the Review of Retirement Income Policies released today by the Commission for Financial Literacy and Retirement Income.

BusinessNZ Chief Executive Phil O’Reilly says the Commission’s consultation has produced some practical recommendations to help New Zealanders better prepare for retirement.

“New Zealand’s mix of private and publicly funded savings is a good framework that can be strengthened further with the Commission’s proposals for greater voluntary KiwiSaver enrolment, indexation of National Super against wages and prices, plans to encourage more use of annuities and more focus on financial literacy training.”

Mr O’Reilly said readying the system to cope for demographic changes was important.

“Having a quarter of the population aged over 65 around the middle of this century means the system must undergo some change.

“The Commission’s proposed plan of raising the age of eligibility according to life expectancy forecasts - with regular reviews checking against the forecasts - would allow for the age of eligibility to be raised gradually, along with average lifespans, over coming years.

“The Commission’s proposals would allow for steady, prudent improvements to a sustainable system for retirement provision.”

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