Support for tax incentives weakens

Tax incentives for retirement savings are popular with the public even though the Government has canned the idea for now.

ASB Bank’s latest investor confidence survey released last night claims that 63% of respondents agreed with the statement that "I am in favour of there being a tax incentive to encourage people to save". A further 25% strongly agreed with it.

While the figures are high they have actually weakened since the last survey where 90% of respondents agreed with the statement.

The biggest fall was in the strongly agree camp which declined 26% from 34% to 25%.

Another interesting conclusion of the survey is that tax incentives are favoured ahead of compulsory retirement savings.

Agreement is strongest among those already saving for retirement, where 91% agree with tax incentives, including 29% who agree strongly.

Respondents between the ages of 40-49 years showed the most intense support, with 33% strongly agreeing with tax incentives.

National Party leader Bill English is crowing about the survey, claiming he is on a winner with tax incentives as an election platform.

"It's clear from this survey result - and from other feedback I've had - that National is on to a winner with its policy to introduce tax incentives for saving.

"I'm looking forward to putting our retirement income policy up against the Government's Cullen Fund to voters later on this year," he says.

The irony of the situation is that National’s official superannuation spokesman Gerry Brownlee acknowledged last week that tax incentives will do nothing to help people save.

Likewise, Business Roundtable executive director called tax incentives a "retrograde step".

And at the same conference National’s potential coalition partner, Act, says they are totally opposed to the idea of tax incentives.