Retirement savings on the up despite recession

Tuesday 1st December 2009

New Zealanders are “flooding back into Kiwisaver” and still saving for retirement despite the recession sapping their ability to spend, according to an AMP report released today.

The Superwatch Survey, conducted by Colmar Brunton in August, showed retirement savings have returned to pre-recession levels, with 64% of savers saying they are putting aside money for their superannuation.

The number of eligible New Zealanders who have joined the Kiwisaver scheme has increased to 43% from 14% over the past two years, with a further 19% likely to join by the end of the year.

The survey found almost everyone who joined the scheme said it was the right decision, with only a few trimming their contribution to the 2% minimum introduced by the National-led government in April.

“There are signs New Zealanders are serious about saving for their retirement” said AMP’s marketing and distribution general manager Blair Vernon in a statement. “It is moving past being seen as discretionary spend” and people need to move on from knowing they should sign up to actually doing it, he said.

Two-thirds of respondents said they prefer the age of eligibility for NZ superannuation to stay higher than 65, according to the report. Of those opposing the increase, 41% said they believed they had paid sufficient tax to feel they had earned NZ super at 65. A further 25% considered they would be unfit for work past 60.

The survey had a sample size of 505, with a margin of error of plus or minus 4.4%

Businesswire.co.nz

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