15 September 2004

Super Savings Essential Says Peters

Rt Winston Peters says the latest proposal from the Government to set up a limited central superannuation savings scheme is a small step in the right direction but it does not go nearly far enough.

Mr Peters has campaigned for many years to set up a compulsory, state administered, savings and superannuation scheme to provide both a guaranteed retirement fund and investment finance for New Zealand projects.

“The present level of superannuation is not enough to support many people in their retirement,” said Mr Peters.

“Rising local body rates, insurance costs and interest rates, as well as increasing health care costs have meant that current saving levels provide only the bare minimum retirement income.

“The automatic enrolment of new staff in a savings scheme is encouraging, but people have the option of withdrawing from this if they choose.

“Being able to opt out of the savings scheme means that we can’t guarantee sufficient retirement funds.

“A compulsory saving scheme or an employer-based retirement scheme is a way to ensure that people will save for their retirement – even if they do so begrudgingly,” concluded Mr Peters.

ENDS

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