AMP supports Cullen
In a speech to the ASFONZ AGM, Hon Dr Michael Cullen emphasised the importance of education and the responsibility of individuals to save for their retirement.
"We welcome the Treasurer looking beyond the New Zealand Superannuation Fund and debating how to encourage people to save voluntarily. Our own research shows that 83% surveyed don't think the current level of NZ Super is adequate for their retirement," says Linda McCulloch AMP's Head of Superannuation Strategy.
"New Zealand has very few incentives available to people that save for their retirement, and we support the Government's review of how private savings are encouraged.
"Reaching people through their place of work is the most logical and effective way to educate people about saving for their retirement. Directly saving for super through payroll is the easiest and most successful way to save," says Ms McCulloch.
AMP disputes Dr Cullen's claim that it has reduced its financial contribution to educating New Zealanders about the benefits of saving.
"For the past XX years AMP has operated a financial education programme in workplaces all around New Zealand to increase the financial knowledge of employees who are members of an AMP-run superannuation scheme.
"AMP will continue working to demystify retirement savings issues for people because we believe we have a fundamental responsibility to do what we can to ensure that New Zealanders retire with dignity."
AMP, with Government and the Office of the Retirement Commissioner will continue to work in partnership to encourage private savings.
"Dr Cullen proposes a T E t approach, but we believe that only the E E T approach will seriously increase people's willingness to save. However, we recognise the immediate tax revenue implications that E E T poses and believe the suggestion that Dr Cullen raises limits that impact.
"Our own research shows that 74% surveyed recognise that it is their responsibility to save, simply because there is no alternative.
"Both AMP and the Government agree that educating people about the value of saving is the key - important enough to consider teaching it at school with other life skills.
"For some years now, AMP has recognised the changing requirements of people retiring, and is currently working to ensure that our products offer flexibility to suit different lifestyles.
