retirement.org.nz

This, our fifth Statement of Intent, sets out the intended direction of the Retirement Commission over the next three years. It describes how we will work towards our goals and carry out our core business.

The 2010/11 year covered by this Statement of Intent will be another busy and significant one for the Commission. During the past two years the Commission's operating environment has changed significantly.

The worldwide economic downturn and finance company collapses in New Zealand have highlighted the importance of financial literacy. It's high on the agenda both nationally and internationally. As we look for ways to help New Zealanders understand more about the increasingly complex and challenging financial environment we can draw on international experience.

Representing New Zealand, I am an active member of the Organisation for Economic Cooperation and Development (OECD) International Network on Financial Education (INFE). Through the successful programmes of the Retirement Commission and others, New Zealand is recognised for its financial education activities and we are often sought out by other countries for expertise. Equally, we are able to learn from other countries and share best practice.

The Retirement Commission plays a key role in ensuring that there is co-ordination across the various financial education activities in New Zealand.

We are pleased that New Zealand's National Strategy for Financial Literacy strategy has been positively acknowledged by a wide range of public and private sector players as a cornerstone for better co-ordination of financial education activities. At the Financial Literacy 09 summit in June the Minister of Finance asked that the Strategy advisory group report to him twice a year. We welcome the Government's interest in this area as the better equipped New Zealanders are to make informed decisions, the better off we will all be in the long-term.

We are currently reviewing the strategy to ensure it is relevant for today. It will be re-launched later this year with a five-year action plan. The Commission is also developing a strategy to reach Mäori which we will launch later in 2010 with a five-year action plan.

We will continue to develop the financialliteracy.org.nz website, home of the National Strategy, as an important financial education resource for all of New Zealand. The website is co-funded by three finance industry bodies – the New Zealand Bankers' Association, Workplace Savings New Zealand and the Investment Savings and Insurance Association. The Commission co-ordinates and publishes a database of financial education providers on the website which details financial education activities in New Zealand that meet quality criteria.

The Commission is best known to New Zealanders through its Sorted website, booklets and seminars. The website offers free independent and impartial information, including more than 40 interactive calculators, to help Kiwis of all ages understand money matters and manage their personal finances throughout life.

Through the sorted.org.nz website and other Sorted channels including booklets, seminars, social media (blog, twitter and Facebook), short movies and our new mobile phone site m.sorted.org.nz, we will continue to help people make informed financial decisions in the face of changing interest rates, unemployment rates and house values. Usage of the Sorted website, booklets and seminars has increased considerably – from January to December 2009 user sessions on the website increased by over 30% percent compared with the previous year (1.6 million compared to 1.2 million). Over half a million Sorted booklets were distributed in 2009.

Our challenge is to keep the highly successful Sorted website and associated resources relevant, current and accessible. We will continue to identify and test different channels and resources to ensure we reach a wide range of New Zealanders. The focus of our communications in the 2010/11 year will be on youth, older New Zealanders and the Commission's workplace programme.

Despite changes in the Commission's operating environment, our strategic direction remains the same. The Retirement Commission is prepared for the challenges that lie ahead as we emerge from the recession. We are well placed to pursue our three key roles of improving financial literacy, actively supporting the development of a trustworthy financial services sector, and contributing to stable effective government policy.

Building a trustworthy financial services sector in New Zealand is going to take time given the recent loss of savings many people have suffered and the disruption that the economic crisis has brought to the sector. We will continue to work closely with the sector's key representative bodies and the Government to help New Zealanders understand how to get good financial advice and how to better recognise sound financial products.

Since 2004 the Commission has been helping to integrate personal financial education programmes into the school curriculum for Years 1-10. The project was handed over to the Ministry of Education last year. The Commission will continue to promote the programmes, work with the Ministry of Education to provide support, and monitor the effectiveness of this roll out with the Education Review Office.

We have been working with the Tertiary Education Commission, NZQA, the Industry Training Federation, business and union representatives and tertiary education providers to include financial education as a core part of many tertiary qualifications. Free teaching resources for seven unit standards were made available in 2009. We will continue to work with these groups to embed the resources in industry training and with tertiary institutions.

As well as our financial literacy activities, under the New Zealand Superannuation and Retirement Income Act 2001, every three years we are required to review the retirement income policies being implemented by the Government. The review helps widen our understanding of current retirement income policy and practices and where they are heading. Work is well underway for the 2010 review which will be completed by 31 December 2010.

In our role under the Retirement Villages Act 2003 we will undertake a monitoring project in 2010 which will focus on residents of retirement villages.

I am confident that the 2010/13 Statement of Intent will provide a clear and valuable picture of our work and the results we seek.

In the 2010/11 financial year our activities will continue to centre on helping New Zealanders to be financially sorted throughout their lives. I look forward to another exciting and challenging year, as we work towards achieving our vision and goals.

DIANA CROSSAN
RETIREMENT COMMISSIONER