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

 

Mercer gives Budget pass mark

Media Release

Mercer gives Budget pass mark for improving New Zealand's super future

Thursday 19th May 2011

Today's New Zealand Budget revealed continued baby steps towards a more sustainable retirement income system for New Zealand, and although it missed the opportunity to significantly improve our retirement savings environment, it provided positive steps in terms of managing the increasing economic pressure of an ageing population according to Mercer.

Mercer's Head of New Zealand, Martin Lewington, said in terms of KiwiSaver, the Government has passed the baton quite firmly to individuals and the private sector, which we believe was inevitable. We welcome the increase in the employee and employer KiwiSaver contributions from 2% to 3% by 2013.

"We believe KiwiSaver needs to be as attractive as possible to keep New Zealanders in the system and increase the probability of them enjoying the lifestyle we aspire to in retirement. So, as a short-term step an increase in contributions is good, but even at 6% we don't believe this is enough to significantly improve adequacy and contributions will need to continue to rise in the longer-term.

"The good news is that KiwiSaver remains an attractive savings vehicle for New Zealanders with employee contributions still matched by employers and reduced member tax credits remaining," he said.

Mercer also welcomes the recommencement of funding to the NZ Superannuation fund, planned to resume as of 2016.

"Pre-funding or fully funding superannuation is a core component to ensuring the sustainability of the current system," said Mr Lewington.

"The world's best retirement income systems are judged on their adequacy, sustainability and integrity. Today, the Government has taken steps to improve the adequacy of our system with increased KiwiSaver contributions and the sustainability with the resuming of funding to the NZ Superannuation fund - these are positive steps for New Zealanders' retirement security," he said.

The introduction of a range of new investment options open for New Zealand investors is also good news according to Mercer.

"We are particularly encouraged to see the introduction of inflation linked bonds, which we believe play a part in the annuity market and are a key component in inflation proofing any investor's portfolio, something we've been doing for some time in our own portfolios.

"The introduction of new investment options creates more opportunity for New Zealanders, for many via their KiwiSaver accounts, to invest in great New Zealand companies currently owned by the government," Mr Lewington concluded.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election