FOCUSING ON THE FUTURE” A DISCUSSION DOCUMENT”

Submission by KASPANZ-Kiwi Saver, Annuities and Superannuation Protection Association New Zealand Incorporated

* Note page 41, Table 9. To the uninformed reader, this table is comparing like with like. It’s not!

The New Zealand calculation in Table 9, should show the after tax projection (the after tax costing is the only one that matters)

Kaspanz submission supports the overall context of this wide ranging document, making a number of succinct comments re the recommendations

KEEPING NEW ZEALAND SUPERANNUATION FAIR AND AFFORDABLE

• Supports strongly the comments on the current NZ Superannuation model and the retention of its best features including universality. NZ Super is not only sustainable, it’s also far ahead of any possible alternative models. This needs to be emphasised at every opportunity
• Supports the longevity life span approach suggested
• Understands the rationale for recommendation 3, re indexing, but is uncomfortable with index distortions and suggests this  approach  moves away from the test of simplicity, which in the view of Kaspanz should not be interfered with
• Strongly endorses the discussion document position re means testing.

KIWI SAVER

• Supports all recommendations

FINANCIAL LITERACY

• Supports the principal, noting however that within the school environment, ad-hoc and one off presentations have little effect, and to achieve positive outcomes,  school education  need to be pursued within the  approved  Curriculum environment

TAXATION

• Agrees.  *Strongly suggests the issue of the “current taxation of annuities” needs to be urgently addressed and added to Recommendation 10.

This issue is supported by a number of evidence based research papers, e.g. Capital Markets Development Task Force, Savings Working Group recommendations etc.  These papers and a host of other commentators, all concluded the taxation of annuities needs to be addressed.

 

AGE FRIENDLY HOUSING

• Agree

AGE FRIENDLY WORKPLACE

• Agree

INTERNATIONAL PENSION

• Agree

 

 

Alec Waugh

Chairman

KASPANZ

09 4899711

alwaugh@xtra.co.nz

Kaspanz@wordpress.com