NZers confused about policy
New Zealander confusion about Retirement Income Policy reinforces the need for long-term policy stability.
Thursday, October 14th 1999, 12:00AM
"Currently there is no means testing of New Zealand Superannuation payments, yet over 50% of New Zealanders think there is," says Ms Foulkes.
"People also generally underestimate the level of current New Zealand Superannuation payments," Ms Foulkes says. "Almost no-one in our survey got the payments right, with many people being more than $50 out."
The current weekly payment to a single person living alone is $212.69, and the payment to a married couple is $325.58.
"These results are not surprising given the number of changes to retirement income policy over the last few years", she says.
"People tell us every day they are fed up with continual changes to New Zealand Superannuation, and that they want the Taskforce to deliver some kind of stability – so that they have the confidence to plan for their retirement."
The Taskforce’s research also shows that New Zealanders have differing expectations and preferences about when they will retire.
"A considerable number of people feel that 65 is not a relevant retirement age. Some want to retire earlier, some later, and a few not at all," says Ms Foulkes.
The research showed that 45% expect to retire under the age of 65, 28% at 65, 5% over 65, and 14% were unsure or volunteered different answers.
"Perhaps not surprisingly, amongst New Zealanders who are not yet retired, there were also differences between when people would prefer to retire and when they expect to retire."
- 50% would prefer to retire before 65 but only 44% expect to.
- 16% would prefer to retire when they reach 65 years but 28% expect to.
- 24% would prefer to keep working after 65 but only 5% expect to.
- And amongst those who expect to retire at 65 only 30% would prefer to retire at 65
- 41% would prefer to retire before reaching 65 and 22% to keep working after 65.
"These figures show that there is a complex dynamic around when New Zealanders retire. and for most of those 44% who expect to retirem before the age of 65, they’ll be relying on their own private provision, until they reach the age of 65."
"While the Taskforce has made some gains in informing New Zealanders about retirement income issues, the reality is there is still a lot of work to be done to ensure they have the necessary information to take part in the retirement income debate," says Ms Foulkes.
"We need an increased level of communications so people can make informed decisions about retirement income policy, when the Taskforce comes out with its proposal in November 2000, or when politicians are making changes in the future," she says.
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