Despite the Government's aim to increase certainty with the launch of the New Zealand Superannuation Fund, three out of four people surveyed by AMP Superwatch aren't confident that the present level of NZ Super will continue.
John Drabble, General Manager AMP Financial Services, says: "These people aren't confident that a similar level will be around for them when they retire.
"They also believe it is primarily their responsibility to provide for their retirement, while only 19% believe it is the Government's," he says.
The December AMP Superwatch surveyed 470 New Zealanders aged 18 and over during September and October 2000.
"Most think the $208 per week in NZ Super (for a single person)* will cover day to day basic living expenses. But nearly everyone surveyed aspires to a lot more than just survival in their retirement, yet they are not saving enough to meet their intentions," says Mr Drabble.
78% expect travel or holidays
82% expect to pay for recreation activities
68% expect to financially assist their family
52% expect to buy a late model car
More than half expect to do all of these things
Those already retired have more modest expectations: 29% expect to buy a late model car; 55% expect to financially assist family. "Should we be looking to our retired parents and grandparents for a reality check on life in retirement?"
The December AMP Superwatch shows that although New Zealanders' attitudes to saving are changing, there is still a substantial shift needed for people to afford their dream of a comfortable and fulfilling retirement.
"People go to great lengths to plan and save for a 30-day holiday, but when it comes to the longest holiday of their life, the research is showing that New Zealanders think 'she'll be right.'
"The aim of the New Zealand Superannuation Bill currently before Select Committee is only to address a base level of superannuation. For 83% of people surveyed that won't be enough for their retirement, and many of them are not preparing for that fact," says Mr Drabble.
This shows an urgent need for people to gain a greater understanding of what they need to do to save.
"A significant proportion of people surveyed earn more than $60,000. They now have the opportunity to make a 6% tax saving through employer contributions to a super scheme. But many of these people are not aware of this opportunity.
"This is but one example. The question is, are the right vehicles in place to encourage people to save? Or, is it time New Zealand levelled the playing field to encourage saving in a diverse range of options that lend themselves to provide income in retirement?
"Some combination of education and encouragement would appear to be needed if we are to increase the number of people saving for the long term.
"We're encouraged by the tax review initiated by the Minister of Finance, and look to this review to take a lead and recommend ways to encourage long term saving," says Mr Drabble.
AMP Superwatch asked: Which of the following do you expect to be able to do when you retire?
|
|
|
Income |
Age |
||||
|
Expect to be Able to Do When Retire |
% |
% |
% |
% |
% |
% |
% |
|
Have a debt free home |
91 |
87 |
94 |
93 |
93 |
89 |
79 |
|
Financially assist family |
68 |
61 |
74 |
74 |
67 |
63 |
55 |
|
Buy a late model car |
52 |
40 |
61 |
55 |
55 |
54 |
29 |
|
Travel of holidays |
78 |
73 |
81 |
82 |
78 |
80 |
62 |
|
Recreation e.g. golf, bowls, fishing, arts, fitness |
82 |
79 |
86 |
86 |
87 |
73 |
64 |
|
Covering day to day basic living costs |
91 |
89 |
93 |
92 |
92 |
92 |
76 |
|
None |
1 |
1 |
- |
- |
- |
1 |
2 |
|
Don't know |
1 |
3 |
- |
- |
- |
1 |
12 |
AMP Superwatch asked: What are you currently doing to save for your retirement?
|
|
|
Income |
Age |
||||
|
Currently Doing To Save for Retirement |
% |
% |
% |
% |
% |
% |
% |
|
Paying off the mortgage on your home |
45 |
39 |
53 |
34 |
66 |
37 |
12 |
|
Have a formal, long term superannuation savings plan |
47 |
34 |
57 |
35 |
61 |
50 |
31 |
|
Bank or term deposit investments |
33 |
30 |
34 |
17 |
37 |
51 |
45 |
|
Investing in shares |
31 |
22 |
39 |
21 |
34 |
49 |
33 |
|
Residential property other than your own home |
18 |
12 |
22 |
15 |
18 |
24 |
12 |
|
Unit trust investments |
17 |
11 |
22 |
11 |
20 |
23 |
17 |
|
Investing in your own business |
17 |
14 |
18 |
9 |
28 |
19 |
2 |
|
None |
17 |
23 |
9 |
31 |
3 |
12 |
29 |
|
Don't know |
1 |
2 |
- |
- |
1 |
- |
7 |
AMP Superwatch asked:
If you were retiring today, would the current level of NZ Superannuation be adequate to support you in your retirement?|
|
|
Income |
Age |
||||
|
NZ Superannuation Adequate |
% |
% |
% |
% |
% |
% |
% |
|
No |
83 |
74 |
91 |
78 |
90 |
81 |
74 |
|
Yes |
16 |
24 |
8 |
19 |
8 |
19 |
29 |
|
Don't know |
2 |
3 |
1 |
3 |
2 |
- |
- |
AMP Superwatch asked: Are you confident that a similar level of government pension will be available for you when you retire?
|
|
|
Income |
Age |
||||
|
Confident Similar Level of Pension Available in Future |
% |
% |
% |
% |
% |
% |
% |
|
No |
74 |
67 |
80 |
79 |
87 |
60 |
24 |
|
Yes |
17 |
21 |
13 |
14 |
10 |
33 |
33 |
|
Don't know |
9 |
12 |
7 |
7 |
4 |
6 |
43 |
AMP Superwatch asked: Which of these do you feel should take some responsibility to provide for you in your retirement?
|
|
|
Income |
Age |
||||
|
Take Some Responsibility To Provide For You in Retirement |
% |
% |
% |
% |
% |
% |
% |
|
Yourself |
92 |
90 |
95 |
94 |
95 |
87 |
81 |
|
The Government |
54 |
59 |
50 |
56 |
49 |
58 |
62 |
|
Your employer |
17 |
20 |
16 |
22 |
15 |
12 |
17 |
|
Your family |
6 |
8 |
5 |
9 |
5 |
8 |
- |
|
The community |
3 |
5 |
3 |
2 |
4 |
4 |
5 |
|
Don't know |
1 |
2 |
- |
- |
1 |
1 |
2 |
AMP Superwatch asked: And which of these should take the greatest responsibility?
|
|
|
Income |
Age |
||||
|
Take Greatest Responsibility To Provide For You in Retirement |
% |
% |
% |
% |
% |
% |
% |
|
Yourself |
74 |
65 |
82 |
74 |
80 |
65 |
64 |
|
The Government |
19 |
27 |
13 |
22 |
11 |
26 |
29 |
|
Your employer |
1 |
1 |
2 |
- |
2 |
1 |
- |
|
Your family |
- |
1 |
- |
1 |
- |
- |
- |
|
The community |
- |
- |
- |
1 |
- |
- |
- |
|
Don't know |
4 |
5 |
2 |
2 |
5 |
8 |
5 |
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