The government's Savings Working Group is not going to recommend compulsory savings.Working group head Kerry McDonald told a briefing in Wellington this morning that although there are numerous obstacles to greater savings in New Zealand compulsion is not
The government’s Savings Working Group is not going to recommend compulsory savings.
Working group head Kerry McDonald told a briefing in Wellington this morning that although there are numerous obstacles to greater savings in New Zealand compulsion is not likely to make much difference.
“We’ve had a real discussion about compulsion. Its not finished, but on what we’ve seen so far it doesn’t look as though there is any justification of compulsion for savings.”
The group is focussing on how much the lack of savings by the overall New Zealand economy is making New Zealand more vulnerable to shocks, and not so much on whether households are saving enough for their retirement.
Mr McDonald indicated the most vital areas are high effective marginal tax rates which create incentives for people to put their money into property and the like; and also poor returns on investment for a great deal of government spending.
The working group’s final report is due in January.
http://www.nbr.co.nz/article/savings-debate-hots-133102
http://www.nbr.co.nz/article/why-sudden-worry-about-savings-and-why-they-won-t-be-compulsory-129310
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