The New Zealand Bankers’ Association has today welcomed the Review of Retirement Income Policies discussion document released by the Commission for Financial Literacy and Retirement Income.
“The discussion document contains several practical recommendations that, if implemented, will help New Zealanders better prepare for retirement. This is especially important as we face an ageing population that’s living much longer than previous generations,” said New Zealand Bankers’ Association chief executive Kirk Hope.
The Association was pleased to see the Commission encourage greater KiwiSaver enrolment, better tax incentives for savings, and a review of New Zealand Superannuation.
“A mix of private and publicly funded retirement savings is a reality for us today. KiwiSaver has been very successful in getting people to start saving for a better retirement. Moves to get more people on board would benefit individual KiwiSavers and the country as a whole.
“The proposal to remove tax on bank deposit savings interest above the rate of inflation will encourage private savings across the board. It’s also good news for retired people who often rely on the income from their savings to make ends meet.
“We’d also welcome a review of New Zealand Super to keep it both fair and affordable as the population evolves.”
On the proposed review of voluntary annuities, Hope said it was important to investigate ways for people to spend their savings wisely in retirement.
“The discussion document sets a practical way forward. We look forward to seeing it put in place to help secure a brighter retirement for all New Zealanders,” added Hope.