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

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