Clear directions on superannuation

Media release 7 December 2010

Clear directions on superannuation

The Review of Retirement Income Policy contains a lot of clear thinking and straight talking, says BusinessNZ.

BusinessNZ Chief Executive Phil O'Reilly says the recommendation by the Retirement Commission for increasing the pension entitlement age to 67 by 2033 is sensible and likely to be accepted by most New Zealanders.

"Most would understand that the current arrangements are unaffordable and that some adjustment, with a reasonable lead-in time, is required.

"The Commission's statement that it does not support making KiwiSaver compulsory is also welcome.

"The Commission acknowledges that New Zealanders' rate of savings - including assets and homes - is not as low as commonly believed.

"The Commission's finding that compulsory saving would alter the composition of saving, but not necessarily the overall amount, is significant.

"Superannuation is an issue that is too often politicised and hopefully the Commission's Review will help get the issue debated widely so that we can reach a consensus as a country on the way forward for retirement provision."

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