February 1, 2007  

Kiwis are slowly realizing they will have to look after themselves in their retirement but are waiting too long to do anything about it, a new survey shows.

The third annual Axa retirement attitudes survey found three out of four working New Zealanders did not expect a government superannuation scheme to exist when they turned 75.

Despite this, New Zealanders ranked third in the world in their confidence that they would have a sufficient retirement income.

But the reality was that people had serious ground to make up before they could expect a reasonable income when they stopped working, Axa New Zealand chief executive Ralph Stewart said.

"It is unfounded confidence, we do not have the savings to support it."

The survey found that the average monthly savings for an individual were $231, almost 30 per cent higher than in 2005, but Mr Stewart said it fell a long way short of the $500-plus stipulated in Retirement Commission estimates.

"It's good to see this optimism but we question whether people are doing enough," he said.

Though working New Zealanders had a rosy picture of being able to afford their golden years, almost one in three retirees felt their standard of living had decreased since retirement.

In Australia, where mandatory retirement savings are the norm, this was only one in four.

Axa marketing manager Chris Watney said 72 per cent of workers surveyed had started planning for their retirement, but most of those who had not started thought they could wait till they were 45 to do it.

"We're leaving it reasonably late," he said.

Why New Zealanders were waiting so long was unclear, but 64 per cent of those working said they expected a complete restructuring of the superannuation scenario within 10 years, Mr Watney said.

KiwiSaver, the government workplace savings scheme due to start mid-year, was known to 59 per cent of those surveyed, but few knew any detail.

Not a single working person was aware of the $1000 government contribution as part of the scheme.

About 11,000 people in 16 countries were surveyed, more than 300 in New Zealand.