Breaking the Barriers to Retirement Saving

The Council of Trade Unions president Ross Wilson today welcomed Government’s plans to hold a forum to revitalise employer based retirement saving schemes.

“There are many barriers to workplace schemes,” said Ross Wilson.

“Changing the prospectus requirements, reducing tax rates on employer contributions, and getting decent rates of pay so that workers can afford retirement savings would be a start to breaking down these barriers.”

Ross Wilson said that much greater resources should be put into education about retirement savings and promotion in the workplace to ensure workers got the opportunity for independent advice on retirement savings options.

“For much of the 1990s, some employers promoted concepts such as ‘total remuneration’ which removed separate payments for retirement savings and other essential additions to base pay,” he said.

“This, combined with a range of other factors, undermined workplace retirement savings schemes which now only apply to fifteen percent of workers in New Zealand.”

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