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Looking after New Zealanders' lifestyle in retirement is the main aim of a newly announced public consultation, and Finance Minister Michael Cullen wants to hear from people in Wairarapa.
Wairarapa MP Georgina Beyer says the Savings Product Working Group report to Dr Cullen suggests a basic workplace savings scheme and discusses how to get workers to save for retirement.
The Government has not yet formally considered the report, but Dr Cullen is inviting public submissions because he wants workplace savings schemes to feature in his 2005 Budget.
"New Zealand's main economic indicators are strong, but our private debt levels and low savings are weaknesses and could drag down our future quality of life," said Dr Cullen.
Ms Beyer says people in Wairarapa know the importance of saving for retirement, but they have trouble getting started.
"The Government wants to work together with ordinary New Zealanders to build a more confident nation, and the Working Group's report has good practical suggestions for a serious long-term challenge for New Zealand," said Ms Beyer.
The Group proposes a 'generic scheme' whereby employers automatically enrol new employees in a savings scheme from which they can withdraw if they choose. The employers would deduct the savings at source and forward them via Inland Revenue and a central administrator to a designated provider. The idea is to minimise costs and hassles for bosses and workers, and encourage everyone to get into the habit of long term savings.
Ms Beyer says interested individuals, organisations and companies can download a copy of the Working Group's report from the Government website, and the submission deadline is 31 October.
To view the full Savings Product Working Group report:
To calculate your own retirement savings plan, see the Retirement Commission's Sorted website:
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