Kiwis ready for action on Super
Thursday, May 3rd 2001, 2:51PM
More than half of working age New Zealanders would support some form of compulsory superannuation through their employer to help save for their retirement.
In AMP Financial Service's latest AMPSuperwatch survey 58 percent said they would support having a set amount deducted from their pay packet and made available at retirement.
AMPSuperwatch is building up a picture of New Zealanders' preferences for saving for the future, AMP Financial Services Managing Director, John Drabble says.
"Our earlier AMPSuperwatch survey in October/November last year, established that New Zealanders believed they need to save for their retirement, over and above whatever they would get from New Zealand Superannuation. They also strongly believe it is their responsibility to make this provision.
"This survey not only reinforces those findings - 92 percent currently believe they need to save - it now gives a clear indication of how New Zealanders would like to save," Mr Drabble says.
AMP conducted the AMPSuperwatch survey of 414 New Zealanders aged 18 and over during February-April this year.
The survey also found that the vast majority of New Zealanders (over 80 percent) would definitely be encouraged to save more for their retirement if they paid less tax on their superannuation savings.
"As we said to the Finance and Expenditure Select Committee last week, people recognise the need to save, they believe they have a responsibility, but something is holding them back from taking action," Mr Drabble says.
"However, they are giving us strong pointers for future action. According to this AMPSuperwatch survey, New Zealanders want two things. They want an environment which positively rewards long-term saving for the future, and they want a simple straightforward system for making those savings and their pick is employer-based superannuation."
As a way forward, AMP supports the internationally recognised three-pillar framework for retirement income endorsed by the OECD comprised of:
Pillar 1: Safety-net age pension
Pillar 2: Workplace superannuation, and
Pillar 3: Voluntary superannuation
Only a quarter of those surveyed currently have the option to save for super through their employer - yet this is an easy and efficient way to save.
A Master Trust is a hassle free one-stop shop for employers to offer super to their employees. A master trust is basically where many employers join one superannuation trust. The shared costs, reduced risk and easy access make them a popular choice for small business owners and large corporate employers alike.
AMP Superwatch also tells us that people want choice and control:
- Those of working age want information on super first from a professional adviser, and second from their own research;
- At retirement, around half plan to trust a financial adviser to manage their savings and a third will rely on managing their own.
"As a country we have been talking about how people are provided for in their retirement for over a quarter of a century now. This AMP Superwatch report is indicating that New Zealanders realise their responsibility. They want to get on with it and they want an environment which helps them do it," says Mr Drabble.
AMP Superwatch findings:
AMP Superwatch surveyed 414 New Zealanders aged 18 and over during February and April 2001. Research was conducted by Colmar Brunton Research.
AMP asked: The Government Super Fund is the fund the government proposes to establish, which will partly pay for the rising costs of NZ Superannuation in the future. Given that this Super Fund seems likely to go ahead, do you believe you still need to save in addition to this for your retirement?
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AMP asked: Does your current employer provide
a work place super scheme?
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AMP asked: Would you say that being part of an employer provided scheme makes you more inclined to save for your retirement, less inclined, or makes no difference to your desire to save for your retirement?
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AMP asked: If less tax was payable on the money you saved for your retirement, would that encourage you to save, or save more for your retirement?
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AMP asked: Would you support some form of compulsory employer provided superannuation where a set amount was deducted from your pay packet each week and available to you on retirement? This would be in addition to any Government funded pension.
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AMP asked: When you retire, do you expect to manage your own savings and investments or will you deal with an investment provider or adviser?
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