Work-based savings focus of PRG

Under the superannuation Accord the Government has to establish a Periodic Review Group (PRG) every six years to assess how well the superannuation and savings regime is working.

This year's PRG, which being headed by Investment Savings and Insurance Association chief executive Vance Arkinstall has a tighter focus than previous reviews as it specifically looks at the issue of how to encourage work place savings.

"With an ageing population, financial planning for retirement is an issue that affects all New Zealanders. Therefore I would encourage people to take the time to write a submission because it’s important a wide range of views are considered when advising on retirement policy for the future." Arkinstall says.

Finance minister Michael Cullen told a superannuation conference in Wellington yesterday that there is a focus on workplace savings as research shows that is an area where people can be influenced to save.

He says research shows it is much harder to get people to save voluntarily.

Currently there is a lot of concern in New Zealand about the falling numbers of people who are saving through work-based schemes.

Auckland University lecturer Susan St John says the PRG is vitally important this time around for two reasons.

She says New Zealand has a unique savings environment and it is important we make sure that it is working properly.

Also, she points out that the next PRG in 2009 takes place just one year before the first of the baby boomers hit retirement.

If any changes need to be made to the system to account the burden of the baby boomers retiring then they need to be made now.

Written submissions will be accepted up to 5.00pm on 30 May 2003.

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