FOCUSING ON THE FUTURE” A DISCUSSION DOCUMENT”
Submission by KASPANZ-Kiwi Saver, Annuities and Superannuation Protection Association New Zealand Incorporated
* Note page 41, Table 9. To the uninformed reader, this table is comparing like with like. It’s not!
The New Zealand calculation in Table 9, should show the after tax projection (the after tax costing is the only one that matters)
Kaspanz submission supports the overall context of this wide ranging document, making a number of succinct comments re the recommendations
KEEPING NEW ZEALAND SUPERANNUATION FAIR AND AFFORDABLE Continue reading
Sunday Star Times 19 October 2013
THE GREAT GIFT OF NZ SUPER
OPINION: For the great majority of people, NZ Super is an important part of the financial plan.
Most of us do not want to be completely dependent on it, but NZ Super does, nevertheless, provide an excellent base retirement income. Continue reading
On Colin Espiner’s Blog (see below Alec’s Letter)
Published 20th October
Colin Espiner “Our pension penchant” continues a regular theme of headline articles on retirement income, with superficial comment, and doom and gloom ingredients. Espiner needs to come to grips with the fact the universality of NZ Super and the model utilized is recognized by informed commentators as a world leader, and its simplicity to be treasured and nurtured. The Kiss principle applies, otherwise NZ gets into the maze of difficulties that Australia and the United Kingdom and others have and continue to experience. Espiner’s article is a simple litany of exaggerations, containing one liners and left hooks, targeting baby boomers and using emotive words including financial freight train, gold plated, unfair, not affordable etc. What’s needed in the context of reviewing this superficial article, is not a defence of the status quo, with both sides slinging mud at each other, but a calm and reflective look at policy levers that could be applied to a range of formula and models applying to retirement income, evidence based research on the various assumptions, trends both financial and social over reasonable time frames, cross party consensus on issues like this, so impulsive decision making and Government tampering does not occur, and long lead in time frames so the New Zealand population as a whole can adjust to new directions and also build that knowledge into their own financial planning. The Financial Literacy and Retirement Commission planning document is no timid report, instead it’s a thoughtful and succinct overview of the many issues and policy levers that could be applied to retirement income, containing recommendations to assist future discussion and decision making. Unfortunately the Espiner article contributes little to this conversation!
OPINION: Nothing is certain in life, as old Ben Franklin once said, except death and taxes.
The founding father of the United States saw plenty of both in his time, and while he lived to the ripe old age of 84 most of his countrymen weren’t so lucky. Continue reading
Two main points
New Zealand Superannuation (NZS) is one of the simplest, most effective, and most cost effective Tier 1 schemes in the developed world. We mess with it at our peril. We have never had a research-led discussion on any aspect of the design of NZS and, once we get through the 2014 election, that discussion should start. But there is no panic about this. We have time to do the job properly and, by the way, show the rest of the world how to do it properly.
Link to Littlewood’s full paper