Government Super Not Enough

Thursday, 6 September 2001, 11:01 am
Press Release: ASB Bank

5 September 2001

Government Super Not Enough — New Initiative For Retirement Savings

Increasing public demand for more flexible workplace retirement savings schemes has lead to ASB BANK Investments launching what is set to be the most flexible scheme available in New Zealand today.

Called the ASB BANK Superannuation Master Trust the initiative has been set up in response to changing market needs and provides employers with a tailorable scheme that benefits both themselves and their employees due to its flexibility to adapt to changing workplace and employee requirements.

Following ASB BANK tradition, the scheme is set to be the most technologically advanced in New Zealand with a registry system built for recording and tracking investment activity and online reporting planned, where members will be able to track their investments over the internet.

Burton Shipley ASB BANK Manager Group Superannuation says the main benefits of the ASB BANK Superannuation Master Trust include flexibility of contributions, portability if members change jobs, diverse and tailored investment options, low fees, and the expertise of the largest funds management group in Australasia.

“Our research shows that New Zealand’s retirement savings market is poised for change and new activity with most employers preferring flexible, low cost and need specific schemes.

ASB BANK also announced today that it has surpassed $1 billion in funds under management. This milestone has been achieved in just three years and makes ASB BANK the fastest growing investment manager in New Zealand.

“The ASB BANK Superannuation Master Trust is part of a long-term growth strategy and is set to bolster the rapid growth we have been maintaining over the last three years.

“Saving for retirement is a serious issue for New Zealanders right now, and good workplace retirement savings schemes are part of the answer. We’re beginning a major new push by introducing the ASB BANK Superannuation Master Trust.

“By the year 2051 there will be over a million New Zealanders in retirement and Government Superannuation won’t be enough—that’s why new initiatives such as the ASB BANK Superannuation Master Trust are poised to make a real difference to retirement savings by providing an effective alternative way to save.

“A workplace retirement plan is an effective way to attract and retain staff as it shows a long-term commitment to the welfare of employees. In addition, the employer doesn’t have to take on any administration or Trustee responsibilities.

“The ASB BANK Superannuation Master Trust is easy for employers to set up and it’s great for employees. There’s the obvious benefit of painless saving with regular contributions coming out of the payroll system, the flexibility of employers being able to make extra contributions or employees partners also being able to contribute,” says Shipley.

The Master Trust includes a range of diversified and single sector investment options made up of four balanced funds (three passive investment funds and one active investment fund). Each option has a different composition and risk profile so those employees of organisations who take on the scheme end up with personally tailored retirement savings investments.

Ends

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