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


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."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

PM In US: Christchurch Call Leaders’ Dialogue

In only four short months we have – collectively – made real strides toward both preventing and responding to the very real harm caused by terrorist and violent extremist content online.

I know colleagues will speak to the details of this announcement, so I will only note that the plan for a reshaped Global Internet Forum to Counter Terrorism (the GIFCT) is a substantial, meaningful commitment by industry.

This has been developed in conversation with partner governments and civil society, in the spirit of collaboration of the Christchurch Call. More>>


Minister's Speech: Arms Legislation Bill, First Reading

Mr Speaker, the terror attacks at the mosques are not the first mass shooting this country has endured. Successive governments have known since the Thorp review of 1997 that our gun laws were too weak... More>>


Abuse In Care Royal Commission: Minister's Confidence 'Has Been Shaken'

Internal Affairs Minister Tracy Martin has refused to express confidence in the leadership of the Royal Commission of Inquiry into Abuse in Care, after it was revealed a convicted child sex offender was involved. More>>


'Equity Index': School Deciles Gone In Two Years

School deciles will be replaced in 2021 or 2022 by an Equity Index that better aligns equity funding to actual levels of socio-economic disadvantage in our schools, Education Minister Chris Hipkins announced today. More>>


Gordon Campbell: On The RWC, And The Op Burnham Inquiry

Last week’s cross-examination of the military’s former top brass demonstrated in detail that the NZDF had consistently misled its Ministers (and the wider public) for years, over the impact of our military activities in Afghanistan. More>>

Call For Action On Expert Panel Report: Welfare System Needs Urgent Change

If we want New Zealand to be the best place in the world to be a child, the Government needs to increase benefits, remove sanctions, individualise benefits, and fix abatement rates now, says Child Poverty Action Group and ActionStation . More>>


First Data Releases: Mixed External Report On Census Fail Mitigation

The panel endorses the statistical approaches used to mitigate non-response... However, the unprecedented use of alternative government datasets to augment census data raises questions around ethics, social licence, cultural licence, and Māori data sovereignty. More>>


Aitches: Manawatū-Whanganui Region Spelling Corrected

The Manawatu-Wanganui Region will in future be correctly spelt Manawatū-Whanganui Region. The change also means the regional council will be known as the Manawatū-Whanganui Regional Council. Horizons Regional Council is the trading name for the council. More>>

PM In Japan: Jacinda Ardern’s Remarks Following Abe Summit

Today we discussed a wide range of topics. Broadly the themes were: a deeper, high-value trade and investment relationship, greater cooperation in the Pacific; and strengthening our security partnership. More>>





InfoPages News Channels