retirement.org.nz

The Government has policies relating to both the public and private provision of retirement income.

Public provision of retirement income is provided through New Zealand Superannuation, Veteran’s Pension and the operation of the New Zealand Superannuation Fund.  The Government also has policies to encourage the private provision of retirement income to supplement public provision.  This is currently being implemented in two major ways:

• through programmes run by the Retirement Commissioner aimed at educating people about the need to save for retirement
• by the introduction of the KiwiSaver scheme from 1 July 2007.

There is now a broad level of agreement on the parameters for New Zealand Superannuation.  In addition, many of the issues surrounding the private provision of retirement income were subject to consideration and debate during the passage of the KiwiSaver Act 2006. 

The 2007 Review is to focus on those aspects of retirement income policy that build on this foundation and should include:

• in relation to the government’s retirement income policies, an update of and commentary on the trends, and the likely future developments, since the production of the 2003 Periodic Report, that will affect, or will be likely to affect, the provision of retirement income.  The commentary should identify any areas of risk, and should include (but not be limited to) areas such as:
  • owner occupied housing
  • level and composition of personal assets and debts
  • social attitudes of younger people in relation to consumption and savings
• commentary on any current policy settings which may be acting as a barrier to the continued employment of older people
•  identification of any areas of policy development needed to enhance employment opportunities for older people, and for people with disability who want to work
•  identification of the problems facing efficient utilisation of assets accumulated pre-retirement to meet the need for regular and predictable income at different stages of ageing, and suggestions as to potential solutions
• commentary on the risks, opportunities and barriers relating to the use of home equity products and any suggestions for change
• an independent assessment of the effectiveness of financial education available to and used by New Zealanders, utilising arms-length research.