Review of Retirement Income Policies tabled in Parliament

The three-yearly Review of Retirement Income Policies was tabled in Parliament today. The Review was first released as a discussion document in October by the Commission for Financial Literacy and Retirement Income, and has been finalised after a two month consultation period.

Retirement Commissioner Diane Maxwell said the Review process was an important opportunity to raise awareness of retirement income issues as New Zealand enters a period of unprecedented demographic change. That awareness needs to extend to young people, many of whom view planning for the future as overwhelming.

“Both our discussion document and this report feature young people throughout, because they will be the most affected by our action or inaction. Our policy response now will shape their paths as workers, taxpayers, parents, grandparents and superannuitants.”

Ms Maxwell said the volume of response to the discussion document was heartening, albeit ‘a diverse mix of the insightful and the considered, the angry and the mildly xenophobic’.

“Some clear themes emerged throughout the work; that tomorrow competes with today for our time and energy, and that being 65 today is not what it was 50 years ago. Today’s 25-year-olds believe it will be different for them again. They’re probably right,” she said.

Ms Maxwell said the Commission regarded the tabling of the report as just the starting point.

“New Zealand has time to signal policy change and in doing so, give people time to prepare.

“Our goal is to help New Zealanders prepare for retirement across a lifetime and to do that we need to understand and deploy global best practice in driving behavioural change. The private sector also has an important role to play as the custodians of many financial decisions and the architects of financial products.

“And lastly New Zealanders have a key role to play in keeping this conversation alive, focussed and smart, with the right combination of urgency and measure, bravery and conservatism.”

See the report here: http://www.cflri.org.nz/retirement-income/policy-reviews

ENDS

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