Retirement Commissioner loses funding

Promoting the savings message will become more muted this year after the Government cut funding to the Office of the Retirement Commissioner in its Budget.

The Government cut the office's funding 30 per cent from $4.78 million to $3.32 million. On top of this the private sector has stopped its funding which originally ran at $1 million a year.

Currently the savings industry and the Government are in disagreement over the office's funding. The industry wants the Government to fully fund the office, while Finance Minister Michael Cullen says the funding should be a partnership between the Government and industry.

Investment Savings and Insurance Association chief executive Vance Arkinstall says returning to the joint approach originally used "just isn't a goer."

However, he says the industry is prepared to work with the office and help find ways of "furthering its needs."

Retirement Commissioner Colin Blair says the significant funding cut is a blow. He says the office has, over the past five years, significantly raised awareness amongst the public that they need to have private savings if they want to preserve their standard of living in retirement.