Monthly Archives: June 2013

New CFLRI Commissioner

About Diane Maxwell

The Retirement Commissioner at the Commission for Financial Literacy and Retirement Income is Diane Maxwell. (Latest CFLRI Bulletin here)

Diane Maxwell has been appointed Retirement Commissioner at the Commission for Financial Literacy and Retirement Income for a three year term beginning 1 July 2013. Diane has been the Interim Commissioner on secondment from the Financial Markets Authority (FMA) since March 2013. Continue reading

Financial Literacy Summit, June 14th, Auckland. New Retirement Commissioner announced, 300 attended

Along with 300 others attended the Financial Literacy Summit in Auckland on Friday June 14 2013. Put on by the Financial Literacy and Retirement Commission, and a wide range of sponsors, the conference was a very well organised forum with excellent speakers, and conference organisation. Diane Maxwell, Appointed as new Retirement Commissioner. A wide range of topics covered, with Air Commodore Robert Brown, Chairman, Financial Services Consumer Council, Australian Defence Force keynote speech on Work place financial education top class. See www.adfconsumer.govt.au for an excellent resources site, and also www.smartinvesting.ala.org, and our own New Zealand site www.sorted.org.nz. Workshops on schools, Maori, Research and evaluation and Investor education took place on the Thursday

2013 Financial Knowledge and Behaviour survey results announced. NZ ranked very highly internationally on the 8 core concepts. On Savings and Investment most New Zealanders surveyed appear to be putting some money aside at least for the short term. 62% say they have put at least some savings away over the last 3 months, nearly two thirds are investing money elsewhere than Kiwi saver, and Kiwi Saver membership has increased markedly since 2009. Fewer New Zealanders own shares, while more are using store cards and revolving credit, and 31% have worked out how much they will need for their retirement.

Some bullet point impressions

· Knowledge does not always translate to good decisions and sound judgement

· Family, Banks and websites the key to financial information education

· Leadership always a key issue

· Compound interest a key principle-all must understand it

· Jurisdiction over credit, regulation of the product is dominant, but not the means to credit!

· How does one influence investor behaviour?

· Money week Sept 1-7, 2013

Alec Waugh, Chairman Kaspanz

Overseas Pensions-Parliaments Social Services Committee declines enquiry call

The Social Services Committee of Parliament initiated in late 2012, a briefing into pension eligibility and entitlements for overseas pensions, and the application of section 70 of the Social Security Act.

The matter concluded with The New Zealand Labour Party, the Green Party and New Zealand first of the view that the information placed before the committee, warranted an inquiry. The majority of the committee, Government members, while sympathetic to the anomalies in the system, decided not to initiate an inquiry, specifically citing financial restraints as one of the factors in their decision

On June 6 2012 the Retirement Policy and Research Centre of the Auckland business School held a forum “Overseas Pensions: Justice Delayed”, looking at the consequences of the current policy and discussing possible fairer policy options. Over 64,000 persons are affected by the current policy, the majority being from the United Kingdom, Netherlands and Australia. The majority of the forum audience and speakers appeared to agree there was a number of problems with the current policy, and various options were discussed. The issues of what changes and how best to advocate solutions, covered possible class action to continuing lobbying and education on the matter.

This issues clearly shows inequity and unfairness, probable inconsistency in the current application of the Policy, unfortunate spousal issues, which need rectifying now and a review of the policy is overdue!

Alec Waugh

Chairman Kaspanz