Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

AMP On Super: New Zealand Can Learn From Australia

MEDIACOM-RELEASE-AMP-NEW-ZEALAND

An Australian superannuation specialist says that New Zealand should at least look at the Australian experience when developing a national superannuation framework for the future. Both countries face common issues, and there have been key successes in Australia which New Zealand should draw on, as well as some pitfalls to avoid.

Kevin Casey, Manager Superannuation Strategy for AMP Australia, was in Wellington last week to speak to Government officials, MPs, key policy people and media about the how Australia is preparing to look after its ageing population. He says that although there are areas to be ironed out, the country has adopted a three-tier system, which on the whole has been highly successful.

"The key is in shared responsibility," he says. "In Australia, responsibility for an individual's retirement income is shared by employers and individuals, as well as the Government. The system is geared to encourage people to supplement the assistance they receive from the Government, thereby confining direct Government support for the pension to around 3% of GDP. This compares to projections of 5-11% in New Zealand over the next few decades." (Source: Office of the Retirement Commissioner)

He says the Australian system offers a good amount of choice in terms of contribution levels, how the investment is managed and income streams in retirement. "The system has been well accepted by Australians, and a key contributing factor has been the agreement between political parties on key elements, ensuring stability of the core system. However Australia must now work on enhancing the system in areas which are not working well. In particular, compliance costs are far too high."



John Drabble, General Manager of AMP Financial Services New Zealand, says that there is no perfect solution or quick fix. "What is clear, however, is that like the Australians, we must achieve multi-party support to ensure that our superannuation solution builds momentum over time. In order to plan for their retirement well in advance, New Zealanders need stability and certainty and a clear long-term picture."

"We should draw on the lessons Australia has learned in recent years, and decide for ourselves what is right for New Zealand. The New Zealand solution will undoubtedly involve compromise, and we need to address the question of balance between incentives and compulsion. But the fact that the superannuation issue is complex and vexed should not in itself be an excuse for not moving ahead."

Mr Drabble says that Government, individuals, employers and financial services companies need to work together to ensure that everything is in place for New Zealanders as they retire. "No one group can solve the retirement savings challenge on their own. This is a shared responsibility, and we must work together to develop a solution for the future."

"Retired New Zealanders can't survive on just a lump sum. They also need income streams, which can take care of their needs in retirement. To achieve this, massive behaviour change is required and New Zealanders will need to become more `engaged' about their retirement savings. Such change is slow and difficult, but achievable."

Mr Drabble says that employer sponsored superannuation will be a key element. "Our experience is that employer-sponsored super schemes are amongst the most popular benefits provided by employers, and are a key determinant in encouraging retirement savings. We see this as an integral part of the total solution, and AMP is already working with employers around the country to provide this support for employees."

Mr Drabble says that many New Zealanders find it difficult to plan for the future. "But the reality is that they need to plan ahead carefully to have the life that they want in the future. AMP is committed to helping New Zealanders achieve this."

End

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Being Australia's Pacific Go-Fers

Inevitably, there was an aspect of ‘what might have been’ about the weekend’s meeting in Canberra between PM Jacinda Ardern and her Australian counterpart, Scott Morrison. If not for the surprise election result, Ardern would almost certainly ... More>>

 

RNZ: Trades Hall Bombing Case Re-Opened, Evidence Released

The cold case has been reopened and the police have recently revealed more details about the bomb's components - including that it was wrapped in a 1977 edition of The Evening Post. More>>

Safety: Govt Targets Fewer Deaths On The Road

“Most roads deaths and serious injuries are preventable and too many New Zealanders have lost their lives or been seriously injured in crashes that could have been prevented by road safety upgrades,” said Associate Transport Minister Julie Anne Genter. More>>

ALSO:

Pay Rise Delay: Teachers Unions Plan Legal Action Against Novopay

Both of the teachers unions - NZEI and the PPTA - have confirmed they will be taking legal action against Novopay. More>>

ALSO:

Emission Statement: 'Consensus Reached' On Agriculture

Today the Government launched a consultation document, informed by the work of the Interim Climate Change Committee (ICCC), on how to bring agriculture into the emissions trading scheme, a key part of the Government’s plan to tackle climate change and reduce New Zealand’s emissions. More>>

ALSO:

Gordon Campbell: On What’s Wrong With Wellington

For many Wellingtonians, it hasn’t been the normal hardships – the workings of central government and the lousy weather – that have recently pushed their tolerance into the red zone. It has been the inability of local government to maintain even the basics. More>>

ALSO:

$1m Compensation Paid: First Gun Ban Event In Christchurch

The Police Minister says the first ever firearms collection event in Christchurch over the weekend was a huge success. But Stuart Nash had concerns about whether the participation reflected the number of weapons in the region. More>>

ALSO:

The Kids: Youth Parliament 2019 Event Kicks Off

120 Youth MPs and 20 Youth Press Gallery members have gathered in Wellington to attend the two-day Youth Parliament event ... More>>

ALSO:

Friends Like These: Foreign Minister To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. today for talks with senior members of the US Administration, and to attend the Ministerial to Advance Religious Freedom. More>>

ALSO:

Gordon Campbell: On The Aussie Banks’ Latest Fee Hike Excuse

When the Reserve Bank sought feedback on its plans to require the country’s major banks to raise their capital reserves then you might have expected the banks to whine and complain. And so they have. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels