Good news on the savings front
RBNZ predicts New Zealanders will save more over the next two years.
Wednesday, December 17th 1997, 12:00AM
The Reserve Bank delivered some good news to the savings industry on Tuesday when it predicted New Zealanders would start saving more money in the next two years.In its December monetary policy statement the bank expected disposable incomes will rise by about three per cent annually, yet household consumption would rise by only 2 per cent.
In the past two years the both risen at the same level.
The bank's prediction backs up trends in the Westpac/FPG Household savings survey, and evidence the Office of the Retirement Commissioner has been gathering which shows people are starting to save more.
The bank's monetary policy statement can be found at http://www.rbnz.govt.nz It suggests the superannuation debate and the shift towards user pays in health and education may be factors behind an increased awareness of the need to save.
Also it suggests increased job insecurity, perceptions of lower wealth as house price growth slows and high real interest rates may play a role in this trend.
The next big announcement on retirement savings issues will be Thursday December 18 when the Periodic Review group, chaired by Jeff Todd, produces its final report.
This report is expected to look at ways of making New Zealand Superannuation more sustainable, and suggest an expanded role for the Office of the Retirement Commissioner.
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