About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Sunday, May 1st, 9:33PM
rss
Latest Headlines

Incentives not a savings panacea: Cullen

In one of his most important speeches on superannuation Finance Minister Michael Cullen outlines plans for comprehensive changes to the nation's savings environment.

Thursday, April 19th 2001, 8:21AM

Finance minister Michael Cullen says the Government's proposal to prefund NZ Super is only one part of the answer to the savings crisis facing this country.

He also says introducing tax incentives for retirement savings should not be seen as the panacea to increasing savings rates.

In a speech to the Association of Superannuation Funds this morning he said the idea of prefunding NZ Super was only intended to provide a basic income in retirement - the basic bread and butter. People still have to save themselves to provide the jam.

"Security in retirement is the least that citizens should expect from their government in a civilised, developed country. It is also the most they should expect. It is not the function of the government to maintain in retirement the incomes that people earned during working life. That is the responsibility of the individual.

"This is one reason to reject compulsory individualised, earnings based savings: the government is intruding too far into what ought to be personal decisions about how to spread consumption over the life cycle."

He says there are three elements need to construct a positive savings environment: education, opportunity and incentive.

"Education is the responsibility of the government and the industry. Opportunity is the responsibility of the industry; the product they offer has to be relevant. Incentive is the responsibility of the government," he says.

"I must stress that incentives alone are not the answer. They will not work if the educational work has not been done and the opportunities to save are unattractive."

Cullen also outlined further details of how a regime of tax incentives may work.

Read Michael Cullen's speech here

Visit www.supertalk.co.nz for all the latest news and information on superannuation

« MP says super board should listen to ministerSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Banks keen to hold on to QFE model
    “The word "Advisor" has been devalued in the NZ industry. Get rid of the definition "QFE Advisor". Replace with "QFE Salesperson"....”
    2 days ago by b p
  • Banks keen to hold on to QFE model
    “If you cut through all of the self serving and deliberately confusing Bank blather the equation is simple: Bank=no advice,...”
    3 days ago by I was wondering
  • Associations' stance questioned
    “Murray makes many valid points – but isn’t the argument is getting overly polarised? Isn’t there a future ‘middle...”
    3 days ago by Andrew Gunn
  • Better disclosure needed - but how?
    “Just reposting my earlier response to Scott's points about inconsistency (as Scott's previous comment was either deleted...”
    3 days ago by Sceptical
  • Associations' stance questioned
    “Breaking news Gospel of Comprehensive Planner discovered revealing “IFA is the way, the truth and the life, and no...”
    3 days ago by Murray Weatherston
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.64 4.75 4.85 4.99
ANZ Special - 4.25 4.35 -
ASB Bank 5.55 4.69 4.89 5.25
ASB Bank Special - 4.15 4.39 4.65
BankDirect 5.55 4.69 4.89 5.25
BankDirect Special - 4.15 4.39 4.65
BNZ - Mortgage One 6.30 - - -
BNZ - Rapid Repay 5.75 - - -
BNZ - Special - 4.25 4.39 4.64
BNZ - Std, FlyBuys 5.69 4.85 4.89 4.99
BNZ - TotalMoney 5.69 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 5.25 5.15 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.55 4.69 4.85 4.99
HSBC Premier 6.10 4.25 4.39 4.59
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - 4.25 4.25 -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.45 4.70 4.75 4.75
Kiwibank - Capped - - - -
Kiwibank - Offset 5.50 - - -
Kiwibank Special - 4.29 4.25 4.85
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.85 4.69 4.75 5.09
Perpetual Trust 7.70 - - -
Lender Flt 1yr 2yr 3yr
Resimac 5.59 5.24 5.29 5.39
SBS Bank 5.59 4.75 4.89 4.99
SBS Bank Special - 4.10 4.29 4.65
Sovereign 5.65 4.69 4.89 5.09
Sovereign Special - 4.15 4.39 4.65
The Co-operative Bank 5.45 4.25 4.35 4.65
TSB Bank 5.54 4.85 4.95 5.25
TSB Special - 4.35 4.19 4.79
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 5.75 4.79 4.89 4.99
Westpac - Capped rates - 5.15 5.25 -
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.75 - - -
Westpac Special - 4.25 4.39 4.80
Median 5.75 4.69 4.85 4.99

Last updated: 22 April 2016 9:18am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com