Business supports deeper inquiry into compulsory saving

Making superannuation compulsory warrants further study the Employers and Manufacturers Association says.

But any move to do so must not be at the expense of national super entitlements, said Alasdair Thompson, EMA’s chief executive.

“We all need to accept we need to save far more,” Mr Thompson said.

“It’s no surprise we are failing to save enough because New Zealanders produce the lowest value of goods and services per person in the developed world.

“The result is we have the lowest incomes per capita, and as a nation we have had little money to save left over from paying for our first world lifestyle or for many just paying their way.

“Saving more is vital for the future because higher levels of debt are now unaffordable.

“And in a catch 22 we need the funds from saving to invest in new technology and skills training to boost productivity and thereby earn more.

“Whatever we do we need to start at a modest level.

“Business has been moving progressively in favour of making saving compulsory over the past few years. Most business people used to oppose it based on our own surveys; now its 52 for and 48 against.

“Changes to savings schemes or super must avoid loading more costs on business.”