David Carter National Finance Spokesperson

20 March 2002

Cullen's superfund increasingly discredited

"There are some very worrying signs in AMP's latest Superwatch survey released today," says National's Finance spokesman David Carter.

Mr Carter says of real concern from the AMP survey is the trend decline in the number of people saving for their own retirement.

"This number is down from 49 per cent in July 2000 to 42 per cent today.

"I am really concerned that people think there is more to the Government's flawed superfund than there really is and they are scaling back their own savings plans accordingly."

Mr Carter says this is just what Treasury told Finance Minister Michael Cullen would happen, when he first proposed his super fund.

"Evidence is increasing that the Cullen fund is backfiring badly and is having the perverse effect of turning people off private savings."

However, Mr Carter says he was encouraged by the fact that 94 per cent of survey respondents still think they should take some responsibility for retirement provision, and that 32% of people on incomes under $50,000 who were already saving for retirement.

"This is the sort of behaviour National is keen to encourage," he added.

"National's policy of introducing tax incentives to encourage long-term savings puts us in the position of having the only credible retirement income policy available to New Zealanders."

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