The New Zealand Superannuation and Retirement Income Act 2001 requires that the Commission for Financial Capability conduct three- yearly reviews of retirement incomes policies. The terms of reference for the review are set by the government.
To mark the beginning of the 2019 review the RPRC held a summit on 26 April at the University of Auckland.The Summit Proceedings : The 2019 Retirement Income Policy Review and You, are available here.
The purpose of the Summit was to contribute to better understanding of the sector, the issues, and to the importance of the 2019 Review. Based on the terms of reference of the Review, a wide range of issues were canvassed, including a contribution on international issues and financial institutions chaired by RPRC Research Associate David Harris of TOR Financial Consulting Ltd. We look forward to the next few months’ debates on the policy issues that will be examined in the 2019 Review.We encourage your participation in the Review. You can register your interest by adding your name to the Commission for Financial Capability database.
Terms of reference for the 2019 retirement income policy review
Aspects of retirement income policies the review must address and the topics to be discussed in the Retirement Commissioner’s 2019 report:
- An assessment of the effectiveness of current retirement policies for financially vulnerable and low-income groups, and recommendations for any policies that could improve their retirement outcomes.
- An update and commentary on the developments and emerging trends in retirement income policy since the 2016 review, both within New Zealand and internationally.
- An assessment of the impact that the following will have on government retirement income policies, including KiwiSaver and New Zealand superannuation:
- The changing nature of work, including the increasing number of people who are self-employed and/or working in temporary and flexible jobs;
- Declining rates of home ownership; and
- Changes in labour market participation of those 65 and older.
- Information about, and relevant to, the public’s perception and understanding of KiwiSaver fees, including:
- The level and types of fees charged by KiwiSaver providers; and
- The impact that fees may have on KiwiSaver balances.
- Information about the public’s perception and understanding of ethical investments in KiwiSaver, including:
- The kinds of investments that New Zealanders may want to see excluded by KiwiSaver providers; and
- The range of KiwiSaver funds with an ethical investment mandate.
- An assessment of the impact of current retirement income policies on current and future generations, with due consideration given to the fiscal sustainability of current New Zealand superannuation settings.
- Information about the public’s perception of the purpose and principles of New Zealand superannuation.
- An assessment of decumulation of retirement savings and other assets, including how the Government can ensure New Zealanders make the most of their money in the decumulation phase.
Posted Alec Waugh May 20