Budget initiatives a great start: AMP

The Government’s initiatives outlined in the Budget for the universal KiwiSaver workplace savings scheme and the moves to improve the taxation of managed funds are a crucial step in the right direction.

Sunday, May 15th 2005, 9:00PM

New Zealand’s level of savings is the lowest in the OECD and, as a nation, we save less than countries that have a lower standard of living than we do. Yet the reality is, says Greg Camm, managing director, AMP Financial Services, that New Zealand has one of the most innovative and pragmatic populations on the planet.

It really has begged the question, why isn’t the average Kiwi better off? So, these initiatives are encouraging. They are a first step on the road to bringing us closer to a New Zealand where everyone is able to participate fully in society and, ultimately, enjoy the future they want.

Achieving that vision is possible. but to do it we need policies such as these that both encourage asset accumulation and enable New Zealanders to become more sophisticated in planning for their own financial future. The $1,000 Government contribution is a good start to encourage this, however we look forward to seeing more moves in this direction in future.

As the leading provider of workplace savings, AMP knows first hand that workplace savings schemes are successful in achieving significantly higher personal wealth. It’s about shifting New Zealanders. attitudes to long-term saving,. says Mr Camm, .and providing all New Zealanders with access to opportunities and, ultimately, the future we all want . a comfortable, secure retirement, greater control over our own destiny and overall financial well-being. This choice should - must - be available to all Kiwis.

The Government is taking the right steps but it.s important to keep things simple. We are particularly pleased to see that integration with existing workplace schemes has been a key consideration so far and look forward to this continuing as development progresses. Simplicity for both employees and employers will be crucial in the success of these initiatives.

As far as the Government’s investment tax changes announced in the Budget, AMP also applauds that move . For too long, New Zealanders have faced disincentives to investing, particularly in the area of managed funds. .Having a real stake in the future of New Zealand through shareholding is an essential ingredient in any long-term savings plan. It’s not just about property!

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Tyndall applauds workplace super scheme »

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