Report recommendations stress importance of savings

The Retirement Commissioner’s review of retirement income policy is a timely reminder of how crucial it is for people to plan ahead for their later years, Social Development and Employment Minister Ruth Dyson said today.

“I welcome the Commissioner’s findings and take note of the recommendations she makes. Once a substantive analysis of the Commission’s recommendations is carried out early next year we will be able to provide a more comprehensive response,” said Ms Dyson.

“In New Zealand and most other OECD countries, the numbers of older people are increasing as a percentage of the population, and people are living longer. It is particularly important that we have policies and programmes in place that ensure older people enjoy a good quality of life.

“This Labour-led government has achieved good progress in helping to ensure that older New Zealanders are able to participate in their families, communities and in work.”

Some of the initiatives and programmes that are already in place include:

• The introduction of KiwiSaver, which makes savings for retirement easier. In the first five months, more than 316,000 New Zealanders have signed up
• New Zealand Superannuation which increased in April last year to 66 percent of the average wage in line with the government’s agreement with New Zealand First
• The New Zealand Superannuation Fund which provides long-term stability to the basic state pension
• The Positive Ageing Strategy which sets out the government’s vision for a society where everyone can age positively and where older people are highly valued for their knowledge, skills and experience
• A range of employment support and services to include people aged up to 65 years old, including those on a Sickness or Invalid’s Benefit
• Work being done to develop a code of practice for home equity schemes
• Providing support to older people in need of affordable housing help through the provision of income-related rents. Housing NZ Corporation's Housing Innovation Fund also supports community groups and councils, most of whose tenants are elderly, to maintain and develop social housing
• The amendment of the enduring powers of attorney rules through the Protection of Personal and Property Rights Amendment Bill to protect older people from exploitation when setting up enduring powers of attorney

"The Ministry of Social Development’s Positive Ageing Indicators 2007 report, released earlier this year, found that most older New Zealanders are well-equipped to participate positively in society. Our challenge is to ensure older people in the future can enjoy the same opportunities that are available to other New Zealanders,” Ms Dyson said.

This is the Retirement Commissioner’s first regular report on New Zealand’s retirement income policy. The next is due in 2010.