Pension commentaries
Expressions of the author’s opinion about a topic. For instance, policy proposals and analysis.
2021
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PC 2021-4: Commissioner for the Future - Again. Size: 662.3 kB.
Document Description: This Pension Commentary argues that here is a great need to reinstate a Commission for the Future to promote intergenerational equity and to ensure there is a future for the rangitahi of Aotearoa.
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PC 2021-3: Aged Care Commissioner for Aotearoa. Size: 260.3 kB.
Document Description: This Pension Commentary questions the merits of the Government’s proposal to locate the soon-to-be-appointed Aged Care Commissioner within the Health and Disability Commission, rather than Te Ara Ahunga Ora Retirement Commission.
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PC 2021-2: New Zealand Super Fund. Size: 265.4 kB.
Document Description: This Pension Commentary focuses on the role of the New Zealand Superannuation Fund in the retirement incomes framework and asks whether it is fulfilling its initial promise. Is it time to revisit the purpose and formula of this fund or is it an opportunity to capitalise on the fact we have a fund and repurpose it for the benefit of all?
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PC 2021-1: KiwiSaver Fees vs Contributions. Size: 143.7 kB.
Document Description: Guest contributor David Boyle notes the heightened public awareness of the effects of fees on final outcomes for KiwiSavers. He argues that a more pressing issue is the high number of members who are not contributing at all, or contributing too little to gain the maximum government subsidy.
2020
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PC 2020-11: The spousal deduction. How did the courts get it so wrong?. Size: 196.9 kB.
Document Description: The RPRC invited Sissi Stein-Abel, administrator and editor www.nzpensionprotest.com and long-time critic of the direct deduction policy, to share her observations on the Human Rights Review Tribunal hearing in March 2018 and the long journey to abolition of the spousal deduction on 9 November 2020. This opinion piece does not necessarily reflect the views of the RPRC.
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PC 2020-10: Seniors, COVID-19 policies and the 2020 Budget. Size: 286.5 kB.
Document Description: COVID-19 provides an opportunity to rethink all elements of retirement income policy to ensure that the pain of the pandemic is shared equitably and the settings of policy are improved to reduce the impact on those most at risk. It appears that women, ethnic minorities and the young have been adversely and disproportionately affected, compromising their retirement preparedness.
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PC 2020-9: PM’s delays are a betrayal. Size: 141.1 kB.
Document Description: Anomalies in the policy for superannuitants with overseas pensions are an indictment on the justice process in New Zealand.
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PC 2020-8: The NZ Super Fund and cookie-jar economics. Size: 142.1 kB.
Document Description: Buried in Budget 2020’s eye-watering numbers was news that, despite the economic catastrophe we are about to endure as a consequence of COVID-19, the Government intends to keep up its contributions to the New Zealand Superannuation Fund (NZSF).
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PC 2020-7: Budget and intergenerational fairness. Size: 115.0 kB.
Document Description: Why this budget matters for intergenerational fairness.
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PC 2020-6: Universal basic income: Be careful what you wish for. Size: 108.4 kB.
Document Description: Any Universal Basic Income New Zealand implements would likely be far too low, helping all the wrong people and leaving those in desperate need even worse off. Adapting what we already have in place is a much safer approach.
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PC 2020-5: Welfare policies post-lockdown. Size: 104.9 kB.
Document Description: Most policy analysts would agree that while national emergencies such as Covid-19 justify an immediate response, the policies chosen to cushion the impact should be adequately scrutinised and well-designed.
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PC 2020-4: Accessible streets - Yeah, right. Size: 120.8 kB.
Document Description: Once the COVID-19 lockdown ends, our streets will be busy again. We have a chance to ensure we get it right for pedestrians this time, and e-scooters stop being a hazard.
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PC 2020-3: Kiwis falling through KiwiSaver cracks. Size: 115.5 kB.
Document Description: Many low income New Zealanders can’t afford KiwiSaver contributions, and growing numbers are withdrawing their funds for hardship reasons. This vulnerable group needs options that will lift their incomes when they retire.
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PC 2020-2: NZSF magical thinking. Size: 186.1 kB.
Document Description: “By underfunding investment in the young we've been able to create budget surpluses to be siphoned into the NZ Super Fund at the current rate of nearly $2.5b a year. This has some serious impacts for a lot of families”, writes Susan St John.
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PC 2020-1: NZS as a grant. Size: 164.8 kB.
Document Description: The latest three-yearly 2019 Retirement Incomes Policy Review takes a refreshingly holistic view of retirement policy and is welcomed by the Retirement Policy and Research Centre at the University of Auckland. Interim Retirement Commissioner Peter Cordtz has followed signals given in the Terms of Reference that reflect this government’s wellbeing approach.
2018
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PC 2018-2: Divestment and Decumulation – Planning for Post-Retirement. Size: 68.1 kB.
Document Description: In the international pensions world, The New Zealand experience clearly shows that with no state action whatever, the annuities market just disappears. It is not an easy problem to remedy and as Ralph Stewart’s experience with the NZ Income Guarantee has shown it is a costly and time consuming path for individual private providers to develop profitable products. Susan St John discusses three important ways that the state can act as a catalyst for retirement income policies.
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Document Description: This paper draws together research and discussions on the issues affecting the future of work for women, particularly older women, 50+, in New Zealand. Time out from full time (FT) employment, restricted training and development opportunities, the gender pay, age and sex discrimination, all significantly impact on their working life and future career prospects, including financial resources. The constrained ability to provide adequate resources for their future may affect women’s choice of when they can stop working.
2017
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PC 2017-1: Responsible investment: the new standard in KiwiSaver?. Size: 258.9 kB.
Document Description: Two years ago, RPRC Associate Dr Matheson Russell wrote in Pension Commentary 2015-3: “The ‘default’ investment options offered by KiwiSaver schemes do not include ‘socially responsible investments’.” This Pension Commentary revisits Russell’s arguments for socially responsible options, and reports on the remarkable transformation of KiwiSaver schemes since then.
2016
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PC 2016-2: KiwiSaver: A world-class savings plan. Size: 219.9 kB.
Document Description: The three yearly review of retirement incomes policies is underway. Each month starting May 2016 a different aspect is being examined by the Commission for Financial Capability. This commentary draws on an article written for the AARP journal in early 2016: How to save like a Kiwi Spring 2016.
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PC 2016-1: KiwiSpend: How to spend like a kiwi. Size: 256.2 kB.
Document Description: The three yearly review of retirement incomes policies is underway. Each month starting May 2016 a different aspect is being examined by the Commission for Financial capability. This commentary draws on RPRC thinking on decumulation, see, for example, St John, Dale & Ashton (2012) A new approach to funding the costs of New Zealand’s ageing population, New Zealand Population Review, Vol 38, 2012.
2015
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Document Description: In Pension Commentary 2015-3, Matheson Russell argues that the default options of all KiwiSaver schemes should be required to use ‘socially responsible investments’ in their investment strategy. This Pension Commentary suggests that ‘socially responsible investing’ is not a robust concept. Further, all KiwiSaver schemes should be allowed to set their own default investment strategy.
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PC 2015-3: Making responsible investment the new standard in KiwiSaver. Size: 407.8 kB.
Document Description: KiwiSaver will have an increasing impact on New Zealanders’ financial wealth. The ‘default’ investment options offered by KiwiSaver schemes do not include ‘socially responsible investments’. Just as the government has regulated the investment strategy of the default option for the nine default schemes, perhaps the default options of all KiwiSaver schemes should be required to use ‘socially responsible investments’ in their investment strategy.
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PC 2015-2: The coming debate on New Zealand Superannuation – the review process. Size: 251.7 kB.
Document Description: New Zealand needs to debate all aspects of the design of New Zealand Superannuation but the government doesn’t want to talk about it. Realistically, nothing can happen politically until at least 2017 and possibly even as late as 2020. In the meantime, New Zealand should start gathering the data that will be needed for the debate, once that can start. We do not have anything like the information we need for a national, principles-based, research-led debate.
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PC 2015-1: Re-designing New Zealand Superannuation. Size: 281.0 kB.
Document Description: The net cost of New Zealand Superannuation will increase from 4.1% to 6.7% of GDP by 2060. Many say that's unaffordable but the expected cost of NZS is a second-order issue. The first priority is to decide on the shape of NZS for 2060, based on what we might want NZS to achieve in 2060. If the ‘ideal’ scheme is too expensive, only then does cost become an issue. New Zealand has never had the suggested principles-based, research-led debate on all the key design elements of NZS.
2014
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PC 2014-1: On recent proposals from Labour. Size: 167.0 kB.
Document Description: This commentary examines the Labour Party’s just-announced KiwiSaver policies and notes with concern that political parties are either ignoring superannuation altogether, or coming up with policies that need consultation and analysis before announcement.
2012
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PC 2012-4: On older workers and some HR issues facing employers. Size: 537.5 kB.
Document Description: NZ’s baby boomers, born between 1946 and 1966, have started reaching age 65. Increasingly, reaching the state pension age does not mean stopping work so there will be a growing difference between the present pension age and average retirement ages.
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PC 2012-3: We all have to talk about New Zealand Superannuation. Size: 429.2 kB.
Document Description: New Zealand Superannuation costs taxpayers, after-tax, about 3.7% of gross domestic product at present. With the expected doubling of the age 65+ population, that cost is expected to be a net 6.7% of GDP by 2050.
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PC 2012-1: KiwiSaver: Changing the default provider regime. Size: 352.8 kB.
Document Description: This Pension Commentary looks at the lessons to date and suggests a major change to the way in which default enrolments happen after 2014.
2011
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PC 2011-1: Why does the Earthquake Commission have a fund?. Size: 492.0 kB.
Document Description: This Pension Commentary examines the case for the existence of the EQC’s “Natural Disaster Fund”. It is the third in a series that looked first at the ACC and then at the New Zealand Superannuation Fund.
Archived Pension Commentaries 2006 - 2009 available on request:
PC 2009-2: The rationale for pre-funding ACC
Susan St John suggests we need to learn from more than 35 years of ACC history, and reach multi-party agreement on the way forward with this efficient and durable social insurance scheme.
PC 2009-1: Why does the Accident Compensation Commission have a fund?
Michael Littlewood argues that the Accident Compensation Corporation does not need to pre-fund its obligations and should move to a "pay as you go" basis.
PC 2008-3: On the relative values of KiwiSaver incentives
The case for a more generous tax treatment of KiwiSaver.
PC 2008-2: Comparing the uncomparable
Michael Littlewood's commentary, published in the National Business Review.
PC 2008-1: Employers should take charge or KiwiSaver will increase their costs
Michael Littlewood's commentary, published in the New Zealand Herald.
PC 2007-2: Taxation: Investment vehicles-There is a better way
Taxation: Investment vehicles - there is a better way. Published Independent Financial Review 11.04.07
PC 2007-1: Tax changes: tax reform fails to meet original aim (2007-1)
Tax change - tax reform fails to meet original aim. Published Independent Financial Review- 4 April 2007