Monthly Archives: September 2013

YES – the UK’S reform of pensions have lessons for New Zealand

Kaspanz Chair’s (Alec Waugh’s) Report on Meeting

An audience at the Auckland Business School on 23 September 2013 were enthralled listening to Dr Alison “Connell talking about the evolving United Kingdom Pension system and the transformation from a messy and complicated system to a much more simplistic one, a change adopting similarities to the New Zealand model? Continue reading

2013 CPI Review Committe Report

Consumer Price index records changes in the price of consumer goods, brought by New Zealand households, giving a measure of inflation An independent advisory committee has endorsed the practices used to compile the consumers price index (CPI) and has recommended ways the CPI can be further enhanced.

On July 10 Statistics NZ published the Report of the Consumers Price Index Advisory Committee 2013 which includes the committee’s 16 recommendations:-  Continue reading

How Much Retirement income is Enough?

OUR PRESIDENT’S (Alec Waugh) VIEW

How much is enough?  An Australian group “Association of Superannuation funds” said a comfortable retirement for Australians, was $A56.296 for a couple, and A$41,090 for a single person. Tom Thompson writing in World Investor a New Zealand publication, said a common rule of thumb is retirees need enough to replace 70% of their pre-tax, pre-retirement income. Continue reading

Susan St John’s Comments on ‘Flexisuper’

Those who can work longer would enjoy a higher rate of super than those who could not, deepening class lines among pensioners. 

Peter Dunne has dunne it again. Like his floundering Income Sharing Bill, Flexi-Super looks like a solution to something – but to what?

Associate Professor Susan St John is co-director of the Retirement Policy and Research Centre, Auckland Business School, University of Auckland.

Read the full NZ Herald Article here

Chair’s Letter re ‘Flexisuper’

If the New Zealand Herald editorial supports the Flexible NZ Superannuation plan, perhaps be wary? The New Zealand Herald has consistently resorted to crisis rhetoric headlines and comment re retirement income issues, including a call for all workers to retire at 70, a reliance on long term projections which are nearly worthless in their accuracy, and often allowing their own media commentators to make inaccurate comment on issues like comparing NZ Super which is taxed, with overseas schemes which are not, and invalid and inaccurate GDP comparisons. The editorial of August 29 is more constrained, but avoids any comment re time lag options. The New Zealand public is wary of Government interventions on retirement saving schemes, and any changes should be signalled years ahead of possible implementation so people can not only adjust their thinking but also there saving habits. The current Government should be applauded for its conservative approach to making changes in this area, and retaining the quality model New Zealand Superannuation is. The flexible Superannuation suggestion is worthy of consideration but a very early analysis would suggest the negatives outweighs the positives, and unless piece meal changes are so obviously advantageous to the consumer, perhaps too be avoided?

Alec Waugh
Chairman of Kaspanz Incorporated