News Round Up: December 13

Retirement report welcomed; Confidence returns to advice business.

Monday, December 13th 2010, 7:25AM

Retirement Commission report welcomed
The Retirement Policy and Research Centre (RPRC) has welcomed the Retirement Commission report issued last week, which recommended raising the age of retirement from 65 to 67 by 2033.

RPRC co-director Susan St John said raising the retirement age should be part of the national debate, along with other aspects of New Zealand Superannuation.

St John said different rates depending on marital status was no longer appropriate and that importantly the Review recommended an end to the current policy of "reducing the value of a person's New Zealand Superannuation if their partner receives a specific foreign pension that exceeds the value of New Zealand Superannuation."

"This policy is egregious and has no place in the modern NZS framework. It can be addressed immediately at little fiscal cost and the RPRC urges the government to act without delay."

Financial planning confidence returns
Confidence about the economy in a year's time has eased but remains relatively firm, according to the latest BNZ Confidence Survey.

The survey found that a net 18% of respondents expect the economy to improve, compared to a net 29% in November.

"Sentiment is almost exactly back where it was two months ago and what this tells us is that people see brighter times ahead but also do not see things shooting away to great heights," the bank said.

BNZ said that in common with previous surveys, the positive sentiment about the future is not matched by positive feelings about the present.

Survey respondents in the finance sector had mixed views, with mortgage and insurance brokers saying they had seen a pick up in business, while consumer finance companies had found demand flat and bank lending slow "due to the slow housing market."

Financial planners, however, had seen a slow increase in investor confidence as "they see lifts in their portfolios."

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