The Symposium included presentations from industry experts, and a panel of discussants. Professor Gary Hawke from Victoria University of Wellington chaired the event.
Keynote speaker, Professor Rust of Yale University, presented information on retirement income policies from around the world. He considered the pros and cons and the historical experience of these systems, and related them to the New Zealand experience and debate over retirement income.
It is an authoritative document for anyone seeking independent background information on retirement income,especially those who advise or comment on retirement policy issues. The new edition updates the first published in May 1999 – incorporating information on the developments and policy changes since that time.
“Firstly, New Zealand Superannuation represents one of the most simple and efficient approaches to a tax-funded retirement pension in the developed world.
“It achieves the objective of ensuring everyone in retirement has at least a basic level of income,” says Mr Blair.
“It does that without the complexities, inefficiencies and compliance costs of many of the policies of other countries, which are often held up as models for us to consider.”
“While we can never be complacent, many features of our retirement income system in New Zealand are positive.
Ms Crossan’s comments followed recent research from the London-based Director of the independent Pensions Policy Institute Alison O’Connell, currently visiting New Zealand.
Ms O’Connell says that the UK system is complex. An increasing number of pensioners are at risk of being under-pensioned in the United Kingdom and the current system discourages them from saving for their retirement.
“Tax reliefs for private pensions not only cost too much, they are amazingly unfair, and quite ineffective,” says visiting retirement savings expert Adrian Sinfield, Emeritus Professor from the University of Edinburgh.
Addressing a seminar arranged by the Retirement Commission and the School of Government at Victoria University, Professor Sinfield said “The UK tax reliefs now cost 14 Billion pounds, but there is a complete lack of evidence demonstrating that these tax reliefs have any beneficial effect upon the level of savings or economic growth.
The comments came in a meeting today with New Zealand retirement commissioner, Diana Crossan, who was invited in London for a Pensions Summit.
Ms Crossan said from London that the UK is going through a painful reassessment of how the State should help people in retirement, similar to that experienced by New Zealand in the 1990s.
New Zealand is yet again the centre of international attention. This time it’s not the All Black’s or yachting, but something far more prosaic - our retirement policy.
Our particular model of future pension planning has attracted overseas interest because of its simplicity, affordability and focus on lifelong financial management.
I was invited to London in November to speak at a conference. While I was there I met with more than a dozen UK politicians, government officials and NGO staff members charged with financial planning and pensions policy.
The recommendations follow a major policy debate in the UK in which New Zealand has been used as a model for tackling the rising pension costs of an older population and other pension problems.
Retirement Commissioner Diana Crossan said it is not the first time New Zealand’s retirement income framework has been looked at closely by other countries.
“New Zealand’s model is admired because it is equitable and people know what they are entitled to,” said Ms Crossan.
Ms Crossan said this year’s report (expected to be tabled in Parliament by the Minister of Social Development on December 17th, 2007 at 4pm) was an opportunity to assess the effectiveness and stability of current retirement income policy.