Watch out for Super assault
Superannuation barely featured in this year's budget, but be warned it will hit the headlines soon.
Finance Minister Michael Cullen reiterated his intention to introduce a dedicated fund to help pay some of the costs of the state pension New Zealand Superannuation.
Figures within the budget document show that the dedicated fund would need annual injections of $2 billion after initial input of $3.6 billion spread over the three years from 2001.
The projections assume annual deposits would begin to fall until they reach zero in 2025. (To read assumptions click here)
Investment Savings and Insurance Association chief executive Vance Arkinstall says although there was little in the budget for retirement savings, there are clear signs the issue has moved up the political agenda.
"Superannuation is very, very high up the agenda," he says. "There are signals that some of the entrenched views of politicians may be changing."
He says it was good to see some of the comments made by Dr Cullen reflected the position put forward by the ISI in its Wake Up Call report on super (to order your copy of the report click here).
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