Savings picture unclear

The latest AMP SuperWatch results show a fluctuating picture with regards to New Zealand’s long-term savings environment.

"Some of the key indicators we measure have reversed a downward trend in this survey and gone back up to levels recorded two years ago. The number of people saving for their retirement (50% in June 2002) and the number of people with formal, long-term savings plans (44% in June 2002) are in this category.

"We’d certainly like to think that there’s more clarity around the savings message and that people are doing something about it, but it is probably a bit early to draw this conclusion," says AMP’s Head of Superannuation Strategy Linda McCulloch.

"On the other hand, there’s been no significant change in a number of other indicators. Most people (78%) continue to think the current levels of New Zealand Superannuation will not be adequate to support them in their retirement. Of those who plan to sell the family home for a profit when they retire, 81% are still relying on making money from the sale to help fund their retirement.

"Over the last two years there’s been a lot of movement in opinion with regard to the responsibility of the Government with respect to providing for people’s retirement. In the latest survey 65% of respondents say they expect the Government to take some responsibility to provide for them in their retirement and that figure has gone up and down since a low of 55% in July 2000. However, the vast majority of respondents (93%) also expect to take some responsibility for themselves and this hasn’t changed much over that time.

"Unfortunately, little growth is evident in those converting this recognition to action. It continues to be of concern that while more than 90% of people think they should take some responsibility for providing for themselves in their retirement, only half are doing anything about it," McCulloch says.