Media release 19 December 2003
Superannuation report misses a few key points
The 2003 report of the Periodic Report Group (PRG) is generally on target, though misses a few key points, says
Business NZ.
Chief Executive Simon Carlaw says it's good news that the report does not favour either tax incentives or compulsory
superannuation. "As the report notes, the focus should be on education and information, removing existing tax
distortions and reducing compliance costs. We also agree that there is potential for more opportunities for people to
save for retirement through deductions from wages at source, into flexible, portable superannuation schemes."
Mr Carlaw says the report fails to address the impact of decisions that are making people think that they don't need to
save for their retirement, particularly the establishment of the NZ Superannuation Fund.
"The existence of that scheme, that can never fund more than a fraction of the future costs, is making people too
complacent," Mr Carlaw said.
"We have concerns about the sustainability of NZ Superannuation, particularly at current levels and eligibility.
Economic growth is the only way to ensure that future retired generations have the standard of living of their parents
and grandparents. The Government must get serious about returning New Zealand to the top half of the OECD and use the
breathing space we currently have to ensure the economy can deliver into the future.
"And employers will be concerned at the report's recommendation that 'pay equity' should be encouraged to address
women's savings. The gender earnings gap is already closing without the Government needing to impose pay equity on
employers through the guise of retirement saving."
ENDS