Workplace super pays
It pays to be in a workplace –based superannuation scheme, according to new Treasury research.
Tuesday, June 29th 2004, 9:11PM
by Rob Hosking
That is not just because all their savings were in workplace schemes: rather, those who save using workplace superannuation programmes also have a higher proportion of savings in other savings vehicles.
The study is based on figures from the 2001 Household Saving Survey.
“An additional $1 in a workplace scheme is associated with a higher total net wealth accumulation of $1.74 for unpartnered females and $2.10 for unpartnered males,” the study concludes.
For couples the effect is $1.47, and in the case of personal schemes the corresponding values are $3.00 for unpartnered females, $5.33 for unpartnered males and $2.00 for couples.
Overall it was found that, where one partner in a couple takes part in a workplace superannuation scheme, they tend to have a higher net worth of about $90,000.
That suggests that couples where one member takes part in a workplace savings scheme do so without making comparable reductions in other forms of saving.
Scobie and Le warn that the findings need to be treated cautiously from a policy point of view. The study is taken from data accumulated at one point in time, and the issue needs further study over time to confirm any policy direction.
“The principal caveat that should be borne in mind when interpreting the results of this study is that those who have voluntarily chosen to belong to a scheme might not necessarily have the same characteristics as the population as a whole.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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