Investment company takes swipe at Govt savings plan

By NZPA

Tuesday 18th June 2002

Investment company Sovereign has taken a swipe at the Government's superannuation policies, suggesting they are causing savings uncertainty.

According to the company's regular survey, Saver Pulse, the number of New Zealanders saving for their retirement has dropped for the fourth consecutive quarter.

In the last quarter, some 54 percent of New Zealanders were saving, compared to a high of 62 percent a year ago.

Sovereign's head of marketing, Vena Crawley, said the findings supported his company's view that the Government's proposed superannuation policy was not instilling confidence in the public.

"The Saver Pulse findings...show almost half the people surveyed are suffering from decision anxiety on how to save, so aren't doing anything at all."

Other findings were that one in four people in high-income households ($70,000-plus) were still not saving for their retirement. Of the people not saving at all, 38 percent were in the higher income bracket ($50,000-plus) and 41 percent were in the middle-age groups (30 to 49 years). Just over a quarter were in full-time work.

Mr Crawley said this was a concern. "The future government needs to put the focus firmly back on private savings, so that people don't see the Cullen Fund as the sole solution for their retirement."

The Internet was also becoming a popular tool for making investments, with more than a third of respondents saying they would be happy to use the Internet with a well-known company.

Finance Minister Michael Cullen and Opposition spokesperson David Carter were due to take part in a breakfast debate on superannuation today (Eds, Tues) in Auckland.

The Saver Plus survey interviews more than 700 people per quarter with a maximum margin of error of plus or minus 4 percent.

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