January 2015

1. New Zealand’s population is ageing and longevity is a big issue

2. New Zealanders over 65 are continuing to work, mostly due to the fact they cannot afford to retire

3. The costs of New Zealand Superannuation over time are exaggerated, and the current model simplicity, universality is a world leader.

4. Section 70 of the Social Securities Act needs reviewing urgently, so fairness and equity can return to the formula applied to some overseas pensions

5. Fees and costs for Kiwi Saver schemes are becoming more transparent and high cost funds rarely perform. Rule of thumb, change to a lower fee provider.

6. Passive and index funds, generally produce better returns that active funds.

7. Annuity options for those exiting Kiwi Saver need attention. The use of compulsory income streams in retirement to help Kiwi Savers move away from “lump sum in windfall “mentality requires addressing, learn from the Australian experience!

8. Work place contributory benefit schemes are vulnerable and need reinforcement by Government and employer.

9. Senior year people need help in making better use of the wealth tied up in their homes, to support their living- the reality of living longer.

10. Increasing health costs due to technology and escalating costs, plus elective surgery options needs attention.

11. Media commentary on retirement income issues, is often superficial with little historical or trend analysis, a few voices dominate the headlines. The New Zealand Herald has a strong bias towards drastic change in Superannuation issues, and is not receptive to alternative views

12. Retirement Policy and Research Centre, Auckland University Business School does an excellent job in highlighting retirement income issues. Susan St John, Michael Little wood and Claire Dale need a round of applause for their efforts!

Alec Waugh

Chairman Kiwi Saver, Annuities, New Zealand Superannuation Protection Society Incorporated

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