About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, February 26th, 4:39PM
rss
Latest Headlines

Savings report scepticism

Tower New Zealand managing director Paul Bevin has sounded a strong note of scepticism about the government’s workplace savings group recommendations.

Thursday, September 23rd 2004, 6:16AM

by Rob Hosking

Correction

A story Good Returns ran on Thursday about workplace superannuation described Paul Bevin as the "outgoing" Tower New Zealand managing director.

This was incorrect.

Tower announced on Wednesday that it was merging its two New Zealand businesses – as reported elsewhere in Good Returns - and that it was looking to recruit a chief executive for the combined business.

The company reported that; "Paul Bevin (and the other current chief executive) have indicated they will not be seeking the new role but will continue in their current roles in the interim, ensuring business continues as usual."

Bevin made no comment to Good Returns about his future plans at Tower.

We regret this error.

The group, headed by former Council of Trade Unions economist Peter Harris, last week recommended making it mandatory for employers to offer access to workplace savings schemes. The proposals are not yet government policy and interested parties have five weeks to make submissions on the report.

“I think they came up with a proposal which was more or less inevitable given terms of reference,” Bevin says.

“I don’t accept that a case has been made that New Zealanders are in fact poor savers-and that, if they are, workplace savings should be preferred over other forms of saving.”

Instead of rushing into a prescriptive solution pushing New Zealanders into workplace savings schemes Bevin says the government should wait for the outcome of the report on taxation of investments, led by former BT head Craig Stobo.

That report is due at the end of October.

“The first priority should be removing some of the broader disincentives to save, and distortions in the tax treatment of savings. If those handicaps, such as high rates of tax on superannuation funds, are dealt with then there might well be more incentives to use managed funds.”

The Workplace Savings Group suggested making all employers of more than five employees offer access to superannuation schemes. Although the group was specifically barred form considering tax incentives, it suggested a number of non-tax “sweeteners.”

Bevin says such schemes will have an advantage over non-approved managed funds, because they will be able to offer bulk discounts.

“What is often not recognised is that people in those employer-based schemes get a better deal anyway, because they pay wholesale rates rather than retail rates. Also there is no adviser fee, because effectively the employer performs that service.”

And if –as the Peter Harris group proposes – the tax system is used to collect workplace-based savings, there is a further hidden subsidy, Bevin says.

“That takes care of the administration costs. And if only approved schemes are able to take part in this, then other managed funds will be at a competitive disadvantage.”

Tower is merging its businesses and looking for a new CEO. Read about it HERE

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

« Instant Finance investment grade: Rapid RatingsSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 3.95 4.15 4.49
ANZ Special - 3.45 3.65 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.49 3.55 3.89
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
Lender Flt 1yr 2yr 3yr
China Construction Bank Special - 3.19 3.19 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.65 4.80 -
HSBC Premier 5.24 3.54 3.20 3.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.97 4.05 4.39
Kiwibank 5.15 4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Lender Flt 1yr 2yr 3yr
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.39 3.55 3.89
Sovereign 5.30 3.89 4.05 4.39
Sovereign Special - 3.39 3.55 3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
Lender Flt 1yr 2yr 3yr
TSB Bank 6.09 4.19 4.35 4.69
TSB Special 5.29 3.39 3.55 3.89
Wairarapa Building Society 5.50 3.95 4.05 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.55 3.99
Median 5.34 3.96 4.09 4.39

Last updated: 21 February 2020 4:32pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com