New Zealanders in retirement want it all...but are not saving for it

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Despite the Government's aim to increase certainty with the launch of the New Zealand Superannuation Fund, three out of four people surveyed by AMP Superwatch aren't confident that the present level of NZ Super will continue.

Tuesday, December 19th 2000, 4:22PM

 Despite the Government's aim to increase certainty with the launch of the New Zealand Superannuation Fund, three out of four people surveyed by AMP Superwatch aren't confident that the present level of NZ Super will continue.

John Drabble, General Manager AMP Financial Services, says: "These people aren't confident that a similar level will be around for them when they retire.

"They also believe it is primarily their responsibility to provide for their retirement, while only 19% believe it is the Government's," he says.

The December AMP Superwatch surveyed 470 New Zealanders aged 18 and over during September and October 2000.

"Most think the $208 per week in NZ Super (for a single person)* will cover day to day basic living expenses. But nearly everyone surveyed aspires to a lot more than just survival in their retirement, yet they are not saving enough to meet their intentions," says Mr Drabble.

78% expect travel or holidays

82% expect to pay for recreation activities

68% expect to financially assist their family

52% expect to buy a late model car

More than half expect to do all of these things

Those already retired have more modest expectations: 29% expect to buy a late model car; 55% expect to financially assist family. "Should we be looking to our retired parents and grandparents for a reality check on life in retirement?"

The December AMP Superwatch shows that although New Zealanders' attitudes to saving are changing, there is still a substantial shift needed for people to afford their dream of a comfortable and fulfilling retirement.

"People go to great lengths to plan and save for a 30-day holiday, but when it comes to the longest holiday of their life, the research is showing that New Zealanders think 'she'll be right.'

"The aim of the New Zealand Superannuation Bill currently before Select Committee is only to address a base level of superannuation. For 83% of people surveyed that won't be enough for their retirement, and many of them are not preparing for that fact," says Mr Drabble.

This shows an urgent need for people to gain a greater understanding of what they need to do to save.

"A significant proportion of people surveyed earn more than $60,000. They now have the opportunity to make a 6% tax saving through employer contributions to a super scheme. But many of these people are not aware of this opportunity.

"This is but one example. The question is, are the right vehicles in place to encourage people to save? Or, is it time New Zealand levelled the playing field to encourage saving in a diverse range of options that lend themselves to provide income in retirement?

"Some combination of education and encouragement would appear to be needed if we are to increase the number of people saving for the long term.

"We're encouraged by the tax review initiated by the Minister of Finance, and look to this review to take a lead and recommend ways to encourage long term saving," says Mr Drabble.  

 

AMP Superwatch asked: Which of the following do you expect to be able to do when you retire?

		Income		Age
Expect to be Able to Do When Retire	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
Have a debt free home	91	87	94	93	93	89	79
Financially assist family	68	61	74	74	67	63	55
Buy a late model car	52	40	61	55	55	54	29
Travel of holidays	78	73	81	82	78	80	62
Recreation e.g. golf, bowls, fishing, arts, fitness	82	79	86	86	87	73	64
Covering day to day basic living costs	91	89	93	92	92	92	76
None	1	1	-	-	-	1	2
Don't know	1	3	-	-	-	1	12

 

 AMP Superwatch asked: What are you currently doing to save for your retirement?

		Income		Age
Currently Doing To Save for Retirement	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
Paying off the mortgage on your home	45	39	53	34	66	37	12
Have a formal, long term superannuation savings plan	47	34	57	35	61	50	31
Bank or term deposit investments	33	30	34	17	37	51	45
Investing in shares	31	22	39	21	34	49	33
Residential property other than your own home	18	12	22	15	18	24	12
Unit trust investments	17	11	22	11	20	23	17
Investing in your own business	17	14	18	9	28	19	2
None	17	23	9	31	3	12	29
Don't know	1	2	-	-	1	-	7

 

AMP Superwatch asked: If you were retiring today, would the current level of NZ Superannuation be adequate to support you in your retirement?

		Income		Age
NZ Superannuation Adequate	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
No	83	74	91	78	90	81	74
Yes	16	24	8	19	8	19	29
Don't know	2	3	1	3	2	-	-

 

AMP Superwatch asked: Are you confident that a similar level of government pension will be available for you when you retire?

		Income		Age
Confident Similar Level of Pension Available in Future	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
No	74	67	80	79	87	60	24
Yes	17	21	13	14	10	33	33
Don't know	9	12	7	7	4	6	43

 

AMP Superwatch asked: Which of these do you feel should take some responsibility to provide for you in your retirement?

		Income		Age
Take Some Responsibility To Provide For You in Retirement	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
Yourself	92	90	95	94	95	87	81
The Government	54	59	50	56	49	58	62
Your employer	17	20	16	22	15	12	17
Your family	6	8	5	9	5	8	-
The community	3	5	3	2	4	4	5
Don't know	1	2	-	-	1	1	2

 

AMP Superwatch asked: And which of these should take the greatest responsibility?

		Income		Age
Take Greatest Responsibility To Provide For You in Retirement	% Total N=474	% <$50K N=186	% $50K+ N=246	% 18-34 N=176	% 35-49 N=178	% 50-64 N=78	% 65+ N=42
Yourself	74	65	82	74	80	65	64
The Government	19	27	13	22	11	26	29
Your employer	1	1	2	-	2	1	-
Your family	-	1	-	1	-	-	-
The community	-	-	-	1	-	-	-
Don't know	4	5	2	2	5	8	5

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