BRIEFING TO THE INCOMING MINISTER OF COMMERCE & CONSUMER AFFAIRS - Te Ara Ahunga Ora | Commission for Financial Capability
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Te Ara Ahunga Ora | Commission for Financial Capability
BRIEFING TO THE INCOMING MINISTER
OF COMMERCE & CONSUMER AFFAIRS
NOVEMBER 2020
cffc.govt.nz
Contents
OUR STRATEGY AT A GLANCE 2
EXECUTIVE SUMMARY 3
Calendar 4
PART ONE: ABOUT US 5
Who we are 5
A snapshot of the future 6
Response to the COVID-19 pandemic 7
Government’s priority areas 8
Recovery Plan 8
Government funding for financial capability 8
Our partners 9
PART TWO: 2020-21 PRIORITIES 10
Trusted information 10
Live Sorted: financial capability is more than money 10
Consumer research 11
Informed advocacy 12
Retirement Income Purpose Statement 12
NZ Superannuation policy settings 12
KiwiSaver policy settings 13
Retirement Villages: a new white paper 13
Māori development 13
Triennial reviews of retirement income policies 13
Effective collaboration 14
National Strategy for Financial Capability 2021 14
Organisational development 15
1
OUR STRATEGY AT A GLANCE
In 2020 we introduced this plan-on-a page summary of the CFFC’s work.
O U R V I S I O N | TĀ M ĀT O U W H A K A K I T E N G A
New Zealanders retire with confidence
O U R M I S S I O N | TĀ M ĀT O U K A U PA PA M ĀTĀ M U A
To help improve retirement outcomes for New Zealanders, with trusted information,
informed advocacy and effective collaboration
O U R O B J E C T I V E S | TĀ M ĀT O U A R O N G A
Trusted information Informed advocacy Effective collaboration
THREE GOALS | WHĀINGA E TORU
Retirement Policies
What we will do: Advocate for a system that serves the diversity of New Zealanders
How we will do it: Conduct a three-yearly review for government
Uncover emerging issues and call for action
Promote debate on retirement challenges
Drive shared evidence to measure the impact of policy changes
Retirement Villages
What we will do: Oversee a fair regulatory framework
How we will do it: Flag issues and report on sector trends
Support dispute resolution
Tackle issues through sector collaboration
Financial Capability
What we will do: Promote the importance of long-term thinking
How we will do it: Lead the National Strategy for Financial Capability
Supply trusted, independent information through Sorted
Equip stakeholders with insights that add value
CFFC BIM 2020 2
EXECUTIVE SUMMARY
Te Ara Ahunga Ora, the Commission for expertise. It is important that these agencies,
Financial Capability, is a small organisation and others, utilise the CFFC’s skills and
that does a big job. Our aim is to help experience (especially Sorted) rather than
New Zealanders retire with confidence. investing in new and unproven approaches
to the complex process of building financial
We do this through advice, influence, and
capability.
advocacy: a three-yearly review of retirement
policies presented to Government and related We are looking for better cross-government
policy work; leading the National Strategy for coordination in financial capability funding
Financial Capability; by supplying trusted,
In the coming year we are increasing focus on
independent information through the Sorted
making general retirement policy settings more
suite of services; and by monitoring the
understandable. This includes the two core
regulatory framework for retirement villages.
government planks - NZ Superannuation and
Our lead role in redeveloping the National KiwiSaver. We also want to increase focus on
Strategy for Financial Capability involves introducing a cross-government coordinated
stakeholders across the country, from approach to retirement issues, one of the
community, industry, and government, who recommendations in the Review of Retirement
are working with us to align financial capability Income Policies 2019.
messages and services to help New Zealanders
We need to establish a DCE group, with
in many different circumstances. This is
your support, to help the Retirement
especially important as the country deals
Commissioner improve cross-government
with the economic impact of COVID-19.
coordination around retirement policies
We will be asking you to launch and support
And later in 2021 we will be mooting with
the National Strategy in 2021
you some possible approaches to the
While our statutory focus is retirement Review of Retirement Income Policies 2022
income our job is much more in the eyes
The Prime Minister and recent Labour party
of the public. This starts with Sorted in Schools,
election manifesto have raised the idea of an
and continues through Sorted at Work and
Aged Care Commissioner. Older people and
Sorted in Communities, all underpinned by
their families looking for independent guidance
New Zealand’s leading independent financial
often contact the CFFC, some about disputes
website sorted.org.nz which has been highly
within retirement villages but also with wider
effective in helping New Zealanders review
problems. The CFFC is not mandated to
their financial situation during the
provide a disputes resolution service but we
COVID-19 disruption.
assist by providing information and guidance
Additional website resource would improve and by listening. If an Aged Care Commissioner
our capacity to continue providing New function is being contemplated, some aged
Zealanders with the best one-stop shop for care support could be easily incorporated into
trusted, impartial financial capability self-help the CFFC and the role of the Retirement
Commissioner expanded to include older
We are playing a key role supporting agencies
people generally.
who also have a role in the financial capability
space. Currently we are working with the We are offering a cost-effective solution
Ministry of Social Development, who provide if this idea progresses
‘Building Financial Capability’ services to
Our key reference and accountability
beneficiaries, and with the Ministry for Pacific
documents are on our website here:
Peoples. Both have received additional funds to
support New Zealanders during the pandemic cffc.govt.nz/reviews-and-reports/corporate-
and the CFFC is helping with resources and reports/
CFFC BIM 2020 3
Calendar
TIMING DESCRIPTION MINISTER
November 2020 Annual Report released Minister for Commerce & Consumer Affairs
to table in House (FYI Associate Minister
for Housing)
Retirement Villages white paper released Associate Minister for Housing
Second COVID-19 financial capability impact Minister for Commerce & Consumer Affairs
study released: how NZers are faring
Q1 operating report provided to MBIE Minister for Commerce & Consumer Affairs
December 2020 First quarterly meetings between Ministers Both Ministers (separately or together)
and Retirement Commissioner
(Q3 substantive topics – National Strategy
for Financial Capability, and Retirement
Villages Framework Discussion Paper)
February 2021 Second quarterly meeting between Both Ministers (separately or together)
Ministers and Retirement Commissioner
(Q4 substantive topic – update on the
CFFC’s Expert Advisory Group next project)
Q2 operating report provided to MBIE Minister for Commerce & Consumer Affairs
March 2021 Launch of National Strategy Minister for Commerce & Consumer Affairs
for Financial Capability
(Ministerial attendance is invited)
Draft Statement of Performance Minister for Commerce & Consumer Affairs
Expectations submitted
CFFC BIM 2020 4
PART ONE: ABOUT US
Who we are
We are Te Ara Ahunga Ora, the Commission We are an autonomous Crown entity
for Financial Capability. We have recently been headed by the Retirement Commissioner,
on a journey to find a name that speaks to who Jane Wrightson, who took up her position
we are as organisation. After discussions with in February 2020. The CFFC leadership team
the Retirement Commissioner and Te Taura is detailed at Appendix 1. Our appropriation
Whiri, we consulted Professor Pou Temara is just over $8.6m and we have recently
who gifted us the name Te Ara Ahunga Ora, completed a substantial restructure and
which reflects an individual’s journey towards strategy reset. Our small team of 37 is primarily
retirement wellbeing. based in Auckland and we have a satellite
Wellington team.
We still use CFFC as a working abbreviation
and refer to ourselves as such in this document. The CFFC has three core responsibilities:
The CFFC aims to help New Zealanders to
retire with confidence. Retiring with confidence
Retirement Policies
means New Zealanders feel secure that they We advocate for a system that serves the
will have resources to live and the know-how diversity of New Zealanders by conducting a
to make ends meet. three-yearly review for government, uncovering
emerging issues and calling for action,
To achieve this a stable and secure retirement promoting debate on retirement challenges,
income system is needed so New Zealanders and driving shared evidence to measure the
can plan. We contribute accessible policy impact of policy changes.
thinking on key issues.
We also work to ensure the retirees of today Retirement Villages
and tomorrow are equipped with the financial We oversee a fair regulatory framework by
knowledge, skills and confidence to make flagging issues and reporting on sector trends,
responsible financial decisions at every stage supporting dispute resolution and tackling
of their lives. issues through sector collaboration.
Greater financial resilience and capability
enables New Zealanders to better manage Financial Capability
debt, accumulate savings, realise home We promote the importance of long-term
ownership aspirations, weather shocks, and thinking by leading the Strategy for Financial
so reduce the government’s long-term liabilities Capability, supplying trusted, independent
associated with an ageing population. The information through Sorted, and equipping
financial resilience playing field is not level, stakeholders with insights that add value.
so a range of interventions is necessary.
CFFC BIM 2020 5
A snapshot of the future Retirement is changing We are continuing to grow as a multi-cultural We are living longer, often remaining in paid country. As we approach the 200th anniversary work past age 65: some voluntarily, others of the signing of Te Tiriti o Waitangi in 2040, our because they need the income. Some people Māori population is growing at a higher rate than have a good range of options for where and Pākehā, and New Zealanders of Asian ethnicities how they want to live. Others - around 15% are forecast to exceed the Māori population. - arrive at pension age with few other resources Different ethnicities have different approaches from a life of material hardship. Yet others, for to retirement and financial capability. instance Māori men, have a higher risk of not reaching pension age at all. People
Response to the COVID-19 pandemic
Financial capability is now more important Many people switched their KiwiSaver fund
than ever to one that was more conservative without
The COVID-19 pandemic has confirmed taking advice. This locked in their losses and
resilience as essential. Economic shocks can will have long-term implications for their
be rapid and far-reaching, and individuals retirement savings.
must be ready and able to respond.
We also discovered further demographic
We have helped New Zealanders enhance their differences. Our Financial Capability Barometer
financial capability for nearly 20 years. Sorted survey interviewed 500 people a month over
continues to be a highly trusted brand and six months, then aggregated the 3,000
a valued source of information independent responses into two-month blocks to detect if
of commercial influence. In times of great attitudes and knowledge around money were
change, people want and need the trusted, changing. Overall, people were more informed
independent financial information that the about their KiwiSaver funds, were able to save
CFFC provides. more, and more agreed with their partner on
how to spend or save money. However, those
We will intensify our financial capability
aged 18-30 exhibited the opposite behaviour,
activities under the Sorted brand in schools,
with fewer keeping a close eye on their
communities, workplaces, and online.
financial affairs. There was also a significant
The pandemic has presented many people increase in this younger cohort thinking that
with financial challenges already and its impact money was there to be spent (from 29% in
is unlikely to have finished. More people may March-April to 42% in May-June, compared
lose their jobs, with the related risks of wage to 27% of the total sample).
scarring and skills deterioration that
Further ramping up the CFFC’s activity in
unemployment brings, and older workers may
building financial capability will be crucial in
be at particular risk. More generally, economic
helping New Zealanders navigate challenging
insecurity may impact people’s desire and
economic times during the next few years.
ability to save, and the low interest rate and
There is a great deal of information out there
low investment return environment presents
but the CFFC’s resources are among the few
challenges for those depending on savings
where the primary aim is behaviour change,
and investments for their income.
not promoting a product or service.
The COVID-19 pandemic has also taught us
We will lead the sector through the refresh of
important lessons about current financial
the National Strategy for Financial Capability.
capability. During the Level 4 lockdown, our
The 2015 strategy is currently being reworked,
survey data revealed that 34% of households
with wide sector consultation, for rollout
were in difficulty and 40% were at risk of tipping
around late March 2021 (see Part Two below for
into hardship, with Māori, Pasifika, and young
more information). The 2021 National Strategy
people the worst affected.
will set a shared direction for financial
Sorted website use also revealed New Zealanders capability and provide a practical framework
are more concerned about their financial for how sector stakeholders can work together
situation. Between March and June 2020 - to achieve the greatest impact by strategic
alignment and effective coordination across
• new users of the Sorted website were up
government, industry, and community.
18% year on year
One of the areas that the National Strategy will
• April saw a four-year record in user numbers
consider is resilience. Financial capability is a
- more than 150,000 people accessed the
skill that helps people become financially and
website for the first time since lockdown
economically resilient. This helps individuals
• social media channels also saw a sharp rise and their whānau and communities, and
in engagement. The main areas of enquiry ultimately the whole country. In the economic
were KiwiSaver hardship applications and rebuild after COVID-19, and in the context of
how KiwiSaver works with the mortgage supporting individual wellbeing, financial
calculator and budgeting tool also capability will be a key requisite for the future.
experiencing high use.
CFFC BIM 2020 7
Government’s priority areas
Recovery Plan Traditionally this ‘in difficulty’ segment has
The Government has outlined five key been relatively separate from the CFFC’s work
principles in its recovery plan for New Zealand: as we focused on different cohorts. See the
investing in our people, jobs, preparing for the Sorted Product Map diagram in Part 2 below.
future, supporting our small businesses, and However, COVID-19 has muddied these waters
positioning New Zealand globally. and different segments are emerging.
The CFFC has a key role to play in preparing In Budget 2020, the Government announced
for the future as our role is to improve $39.2 million investment over four years
retirement outcomes for New Zealanders. for MSD’s BFC services, to address cost
This is best achieved through long-term pressures on services, and as part of the
financial decisions, such as personal savings response and recovery from COVID-19.
(often through KiwiSaver), and home ownership. This investment recognises the critical
importance of building financial capability
and resilience, and addressing problem debt,
We will support the Government to help particularly during the expected economic
New Zealanders prepare for their future by: downturn of COVID-19. MSD is in the process
of determining its future role and pathway to
rowing the financial capability of
g deliver these services and we are discussing
individuals to build their resilience how best to align our work, particularly
roviding policy advice to government
p focusing on people newly facing hardship.
on pre-retirement savings and retirement Similarly, the Ministry for Pacific Peoples (MPP)
income policy received a Pacific housing package of up to
roviding policy advice to government
p $41.3 million in Budget 2020 funding, to
on housing, including the use of KiwiSaver improve housing for Pacific families and their
to fund the purchase of a first home, communities. This includes a component on
and the need for housing options for building financial capability, part of which will
older people be delivered as a combined project with the
CFFC that recognises our expertise in this area.
arefully monitoring the effects
c MPP will fund personal finance training services
of the Retirement Villages Act 2003, to provide Pacific people with the financial
its Regulations, and the Retirement tools they need to help them successfully
Villages Code of Practice 2008 manage their finances, during and after
economic shocks such as COVID-19, and to
support savings towards home ownership.
Government funding for financial capability There is also the potential for other agencies
In the wake of COVID-19 the Government such as Te Puni Kōkiri, the Ministry for Women,
provided additional funding for financial and the Ministry for Primary Industries to
capability to the Ministry of Social identify the need for financial capability within
Development (MSD). MSD provides its clients their cohorts.
with access to Building Financial Capability
(BFC). Among other things, BFC funding
includes the nationwide budget advice
services that help people, families and whānau
experiencing hardship to build their financial
capability and resilience.
CFFC BIM 2020 8
However, none of these initiatives based Our partners
around financial capability are joined up We collaborate with a range of community,
across government and we worry money government, industry, and NGO stakeholders
may be wasted. Directly engaging the CFFC to strengthen joint efforts towards raising
(including funding) either to advise on, financial capability across New Zealand.
or to provide training or other services, is
an efficient way for Ministries to serve clients The CFFC leads the National Strategy for
while ensuring an informed, cohesive and Financial Capability which sets a shared
whole-of-government response. direction for financial capability. The strategy
provides a practical framework to guide and
Individual investments in various aspects of encourage stakeholders to work together.
financial capability, without similar investment This will help achieve the greatest impact by
in Sorted through the CFFC, result in narrow strategic alignment and effective coordination
policy interventions. And, as our triennial across government. We will be working closely
Review of Retirement Income Policies 2019 with the FMA, among others, to align our
discussed, better alignment with MSD work investor relations work, with the Financial
will be important. As the economic effects Capability Trust (FinCap) and others to align
of the COVID-19 pandemic become more our community work, and MBIE and MHUD
apparent, a larger group of New Zealanders to ensure they are aware of our work and of
is likely to require assistance, whether or emerging issues.
not they become MSD clients.
Internationally, the CFFC actively participates
The ability of the CFFC to provide tailored in the work of the OECD International
service offerings to this emerging and growing Network for Financial Education, and in the
group of newly financially vulnerable people development of policy and measurement
will be compromised without further tools for financial capability.
investment (the CFFC has not received
a general increase in baseline funding in the The CFFC also monitors the effects of the
last decade). A bid for additional funding can Retirement Villages Act 2003, its Regulations,
be expected in an upcoming Budget round. and the Retirement Villages Code of Practice
2008. We work with retirement village operators
and residents.
CFFC BIM 2020 9PART TWO: 2020-21 PRIORITIES
Our priorities focus on the CFFC’s three core strategic objectives of trusted information,
informed advocacy, and effective collaboration.
Trusted information
This covers both the financial capability benefit us now and in the future. Becoming
information we provide to New Zealanders and financially capable is crucial to securing an
the research and data we compile to inform adequate retirement: the earlier people start
this work and to share with interested parties. on that journey the better.
Our work covers financial education in schools,
Live Sorted: financial capability is more in workplaces, and in the community. Sorted
than money
activity mostly targets the ‘exposed’ and
Financial capability goes deeper than what ‘secure’ segments. As noted above, the ‘in
people know about money. It’s feeling difficulty’ segment has traditionally been in
confident to make wise judgements about how the MSD space, but the segments are changing
we use and manage our money in ways that and broader alignment is now needed.
Sorted Product Map
Self-service + Maintenance
sorted.org.nz
13 - 18 In difficulty Exposed Secure
Year Olds
Facilitated Learning + Education
Sorted in Schools, Te whai hua – kia ora is a classes in diverse subjects, educating students
free financial education programme with a about money management, saving, debt, goal
vision to equip all young New Zealanders for setting, KiwiSaver, insurance, investing and
their financial future. Available for students in retirement. By developing financial capability
Years 9-13, it is aligned with the curriculum and at a young age, this generation, and those who
available in both English and te reo Māori. It is come after them, will be better prepared to reach
taught by teachers as part of day-to-day their life goals and retire in good financial shape.
CFFC BIM 2020 10Sorted in Communities is primarily focused Before the COVID-19 pandemic the Barometer
on both Māori and Pasifika cohorts using an revealed three main themes:
holistic lens focused on housing. We deliver
- Few New Zealanders plan for the
face to face courses in partnership with
long-term
agencies such as Te Puni Kōkiri and the
Ministry for Pacific Peoples. Culturally - Home ownership (with or without a
appropriate, and relevant to each group’s mortgage) is strongly linked to good
needs, we’ve celebrated many case studies financial outcomes and financially capable
of families shedding crippling debt, meeting behaviours compared to those who do
savings goals for their children’s future, and not own a house
even gaining home ownership. - Subjective factors, not all of them
Sorted at Work and Sorted Sessions are a related to money, play an important role
collection of face to face courses, seminars, and in self-assessed financial wellbeing and
webinars. Our research shows that financial confidence.
stress impacts attendance and productivity. The survey is being redesigned to improve
Employees who take part in our courses report focus, methodology, and to enable data to be
relief at realising they are not alone in their shared. From 2021 it will be replaced by an
financial problems, and at having newfound annual Financial Capability and Wellbeing
knowledge and tools with which to improve Survey which we will share widely.
their situation.
We have also begun publishing regular reports
Our flagship activity is of course the public good to provide fresh insights. These are found here:
Sorted website. Since 2001 Sorted has become a cffc.govt.nz/reviews-and-reports/research-
trusted source of free, impartial and independent and-reports/
financial information and resources for the
1+million New Zealanders who use it every year.
COVID-19 financial impact survey
We steer users to information, guides, and tools
using ongoing marketing and communications in We also commissioned a new survey this year
news media and digital channels. The website to specifically examine the changes in incomes
has a long-term goal of remaining the leader for and financial situation of households since
financial information for New Zealanders. March 2020 and the start of the COVID-19
pandemic.
Consumer research The first wave of the COVID-19 financial impact
Another important part of our work is providing survey was undertaken in April 2020 and the
accessible, useful data to inform government results are on our website.1 They included:
and the wider sector. We are now increasing the - At 28 April 2020 an estimated 232,500
number and range of published reports. Two households (13%) had lost one third or
projects are particularly important: more of their income because of the
COVID-19 crisis
New annual Financial Capability
and Wellbeing Survey - One in four households was in arrears on
at least one payment. One in ten had
Our Financial Capability Barometer has been
missed a rent or mortgage payment
an ongoing survey of New Zealanders on
their financial behaviours, attitudes and - 26% of households appeared secure;
experiences. This is the only such ongoing 40% were exposed to financial shocks;
study in New Zealand. 34% were in financial difficulty.
The survey’s primary goal was to better Results of the second wave of the survey being
understand and target the audiences of assessed now will provide important insights
the CFFC’s financial capability initiatives. into how people’s lives have been further
The data has provided valuable insights impacted by COVID-19. We expect to release
into the state of New Zealanders’ personal the report in November and will update you at
finances, including KiwiSaver engagement our first meeting if you wish.
and knowledge, retirement planning,
savings and debt.
1 CFFC (2020). Impact of COVID-19 on financial wellbeing. Author - Dr Celestyna Galicki.
CFFC BIM 2020 11Informed advocacy
The CFFC is an informed advocate in helping New Zealanders prepare well for retirement and for
various important aspects of older people’s lives.
Retirement Income Purpose Statement As well as acting as a guide for the CFFC’s policy
The Retirement Commissioner, working with work, it is expected the purpose statement will
her Expert Advisory Group, has recently be of use to other government departments, and
launched the first purpose statement that will non-government organisations working in areas
operate as a foundation to evaluate and discuss affecting retirement.
New Zealand’s two-tier retirement income
framework, and to inform public understanding.
NZ RETIREMENT INCOME PURPOSE STATEMENT
A stable retirement income framework enables trust and confidence that older
New Zealand residents can live with dignity and mana, participate in and contribute
to society, and enjoy a high level of belonging and connection to their whānau,
community and country.
To help current and future retirees to achieve this, a sustainable retirement income
framework’s purpose is twofold:
1. To provide NZ Superannuation to ensure an adequate standard of living for
New Zealanders of eligible age. NZ Super is the Government’s primary contribution
to financial security for the remainder of a person’s life.
2. To actively support New Zealanders to build and manage independent savings
that contribute to their ability to maintain their own relative standard of living.
The retirement income system sits within the broader government provision of
infrastructure also needed to enable older New Zealanders to live well, such as health
care, housing, and transport.
NZ Superannuation policy settings policy settings that are currently in place and
NZ Super is the Government’s primary some that could be introduced. The policy
contribution to financial security for a person’s settings include the impact of means-testing
later life. It ensures an adequate standard of of income and assets, residency requirements,
living for New Zealanders of eligible age. and evaluating the age of eligibility. The impact
of the policy settings on tangata whenua and
NZ Super is a high-profile policy with the women will be included. Other policy papers
public. The age of eligibility continues to be will discuss wider issues such as the changing
debated in some quarters, and the range of demography of New Zealand and how this
policy settings needs to be understood better. might impact retirement policy in the future.
To facilitate informed debate and advocate Although our population is ageing, birth rates
for future retirees, the CFFC will be releasing vary across ethnic groups, meaning a higher
a series of policy papers discussing various proportion of the workforce will be Māori and
Pasifika in the future.
CFFC BIM 2020 12KiwiSaver policy settings Feedback on the white paper will be requested
KiwiSaver is a voluntary savings scheme set up by early 2021.
by the government to help New Zealanders save
for their retirement. Māori development
Since the appointment of the new Retirement
With almost 3 million members, KiwiSaver
Commissioner, we have taken three key steps
appears to be a popular scheme. However,
to refresh our Māori development journey.
growth in member numbers has been declining
in recent years and over 1.2 million members The first step was to create an Expert
were not contributing to their funds in 20182. Advisory Group, with mixed membership
that includes iwi, public sector, business, and
A total of $731.2 million of funds were withdrawn
academia. A prominent iwi leader, Ngahiwi
from KiwiSaver funds in 2018 by those aged 65
Tomoana, Chair of Ngāti Kahungunu Inc, is
or over, which was almost the same as the
a member of the group.
$723.3 million withdrawn to fund first home
purchases. $101.1 million was withdrawn for The second step was consultation with a
significant financial hardship3. leading scholar, Professor Pou Temara, to
develop a Māori name for the organisation.
In a similar manner as for NZ Super, the CFFC
We are now proudly Te Ara Ahunga Ora.
will also be releasing a series of policy papers on
Finally, a new position on the Leadership
the KiwiSaver policy settings currently in place,
Team was created, a Kaihautū. This provides
and some that could be introduced. These will
a new opportunity to improve our own cultural
include savings suspensions (formal via an
competency as well as to strengthen Māori
application, and informal due to an employment
engagement and improve our understanding of
break), sidecar savings (considered in our 2019
Māori issues relating to the retirement journey.
Review of Retirement Income Policies),
government contributions, and decumulation. We were already progressing Te whai hua - kia
ora, the Sorted in Schools Te Reo programme
Retirement Villages: a new white paper for Kura Māori, which has been in development
A key deliverable for our informed advocacy since October 2018. Te whai hua - kia ora
work to monitor the retirement villages offers free professional learning and
legislative framework is a new white paper. development to kura, tumuaki and kaiako,
Called Retirement Villages Legislative whānau and ākonga. It provides a holistic
Framework: Assessment and Options for and distinctive te ao Māori view on collective
Change it will shortly be released to the financial wellness traditions and draws on
public for comment. The paper assesses stories and examples from well-known tīpuna.
the framework and recommends a full policy The programme has now reached 60% of
review is carried out by MHUD because of kura and we are continuing with a drive to
the emerging issues identified. sign up more.
The paper notes: Triennial reviews of retirement income
• Most current retirement village residents policies
appear content with their choice of living These are required by statute. The Review
arrangements. of Retirement Policies 2019 was released in
January 2020 and the Retirement Commissioner
• Most operators provide very good services
has initiated discussion on some of the
and care to their residents.
recommendations within her ambit:
• However, there are issues appearing at the Recommendation 1 (Governance: DCE group,
margins, including regulatory structure, that and Expert Advisory Group, discussed above),
need attention. Recommendation 10 (KiwiSaver hardship hub),
The sector structure around retirement villages Recommendation 11 (KiwiSaver sidecar
is complex, involving different regulatory savings) and Recommendation 14 (retirement
instruments - acts, regulations, and codes - and income purpose statement, discussed above).
many different agencies. No agency has full Later in 2021 we will be mooting possible
and active pan-sector oversight. Issues range approaches to the Review of Retirement
across financial, consumer protection, health Policies 2022 for which you will need to set
care, and regulatory alignment. the terms of reference.
2 Financial Markets Authority (2018) KiwiSaver Annual Report Page 6
3 Financial Markets Authority (2018) KiwiSaver Annual Report Page 19
CFFC BIM 2020 13Effective collaboration
We work together with a range of partners as The outcomes of the new strategy (still in
outlined above. We also provide information development) will be focused around:
and coordination across the financial capability
- Consistent content: developing a shared
sector. A key part of that guidance comes from
language across services and ensuring
the National Strategy for Financial Capability.
consistent messages between providers
National Strategy for Financial Capability - Shared data: enabling coherent reporting
2021 across organisations, identifying and
The current National Strategy for Financial focusing on gaps, understanding
Capability was released in 2015 and followed ‘what works’
the 2008 and 2012 National Strategies for - Communication and collaboration: using
Financial Literacy. It represents a collection of a Collective Impact model to develop a
over 250 organisations engaged in the shared evaluation framework and
provision of financial education, support and purpose for stakeholders/partners, and
advice and includes government, corporate, proactively supporting collaboration
education and non-profit entities.
- Shifting the dial: deliberately supporting
The current National Strategy lays out five work key collaborative projects each year,
streams that contribute to a vision of ‘everyone and sharing the learning, successes
getting ahead financially’: getting New and failures
Zealanders to talk and learn about money, to
Our original intent was to hold a national hui
plan for the future, to be debt-smart and to save
to workshop the new strategy outcomes,
and/or invest. The strategy provides a reference
bring stakeholders and partners together,
point for organisations working in the Financial
and build relationships across the sector.
Capability space and a structure to connect their
Since COVID-19 makes this impractical, we are
initiatives in communicating core messages.
currently running a series of fortnightly online
But the strategy is not a living document and workshops to discuss aspects of the strategy
has not been widely embraced nor supported. development, to share research data and
With COVID-19 recovery firmly in mind, and the information, and to facilitate connection and
need for the whole sector to pull together to discussion with participants.
help New Zealanders, we are now The new strategy will be released around late
reinvigorating a new National Strategy to set March 2021. It will be a significant milestone for
the direction for the next five years. We have the sector, and we are very keen for Ministerial
active involvement of, and contributions from, involvement and leadership in the launch.
a wide range of community, government and
industry stakeholders. The new focus is to
support stakeholders and partners, to better
unite the sector, and to foster collaboration.
CFFC BIM 2020 14Organisational development
In 2020 we commenced and completed an organisation restructure to improve flexibility, focus,
and to remove siloes. Our team is deeply committed to helping New Zealanders and to working
collectively to build a strong organisation. The full CFFC team is listed here:
cffc.govt.nz/about/our-people/
This is our leadership team, which meets weekly to discuss operational matters and monthly
to address governance and strategic matters
CFFC Leadership Team
Dr Kathie Irwin Nisha Keetels
Kaihautū Director – Corporate Services
Lyndsey Francis Estelle Sarney
Director – Marketing Jane Wrightson Director – Communications
Mana Ahungarua
Retirement Commissioner
Dr Suzy Morrissey Nick Thomson
Director – Policy Director – Financial Capability
Peter Cordtz was appointed Acting Retirement Commissioner in December 2018, became Interim Retirement Commissioner in July 2019
and subsequently became Assistant Retirement Commissioner in July 2020. He completes his tenure at the CFFC in December 2020.
CFFC BIM 2020 15You can also read
