Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Access to Workplace Saving is Key


20 October 2003


Access to Workplace Saving is Key

The Retirement Commission says the amount of people in workplace retirement savings has fallen to “concerning levels”, and both the Government and business community need to act to improve the situation.

Commenting today on the debate between Finance Minister Michael Cullen and business representatives, Retirement Commissioner Diana Crossan says workplace saving is one of the most effective ways to make financial provision for retirement.

“The Government needs to make it easier for businesses, and businesses need to commit to helping their staff,” Ms Crossan said.

She said saving through the workplace can be one of the easiest and most effective ways for people to save, as it takes savings directly out of pay before people are tempted to spend it.

“The number of people now participating in employer saving schemes has fallen from 20% since the late 1990’s – down to 13.6% of the workforce.”

“We need to make it easier for employers to offer savings schemes to their staff in the first place.

“There are compliance costs that act as a disincentive to employers, who obviously need to be more focused on running their business than dealing with the complexities of providing schemes,” Ms Crossan says.

The Retirement Commission is working with Business New Zealand, the Council of Trade Unions (CTU), ISI (Investment Savings & Insurances Association), and ASFONZ (Association of Superannuation Funds of NZ), to look at ways of encouraging workplace saving. This includes measures such as reducing the disadvantageous tax rates for employees on low incomes experience when contributing to a super scheme.

The Retirement Commissioner says the issue is also high on the agenda for the Periodic Report Group, which will report to Government in December this year.

“Despite these issues employers need to be aware that there are some simple ways they can provide their staff with access to savings schemes run by others. The benefits to staff are significant for very little cost and just a small amount of time,” says Ms Crossan.

To employees her message is clear, “If your employer offers you access to a scheme in your workplace definitely check it out. Even if you’re in a job for a short time being in a workplace scheme can be worthwhile, especially if your employer offers a top-up or pays the fees,” says Ms Crossan.

The Retirement Commissioner says like any other investment or saving decision you make, you need to find out as much as you can about your company super scheme before deciding whether it's the best option for you.

The Retirement Commission’s Sorted website www.sorted.org.nz/at work has information to help both employers and employees make saving decisions.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>