7 Oct 2010

McDonald not convinced about compulsory savings

6:21 pm on 7 October 2010

The head of the group appointed by the Government to solve New Zealand's savings problem is yet to be convinced that making savings compulsory is the answer.

Savings Working Group chair Kerry McDonald says evidence from other countries on the benefits of compulsory national savings is not clear-cut.

He says people may respond by reducing savings in other areas without boosting savings overall.

But Mr McDonald says his group will not shy away from making recommendations if they are in the interests of the country and even if they are not supported by evidence.

The Savings Working Group is due to report back to the Government at the end of January next year, with possible changes in the Budget.