The SWG has recommended policies to increase the quality, quantity and rewards of saving. These include reducing serious tax distortions, and improving the disclosure for financial products, especially for fees and performance as well as improving their efficiency and returns.

In the area of retirement saving, the SWG has recommended that all employees over the age of 18 be automatically enrolled in KiwiSaver with the ability to opt out. At present, automatic enrolment applies only for new employees.

Also recommended is that the enrolment age be lowered to 16 and that the default employee contribution be set at 4% with the option to drop it to 2%. Of course, one of the most obvious solutions to our savings problem is to increase the retirement age. Despite this being a good economic solution it is still politically unacceptable, at least until after the next election.

The proposal for the Government to help make annuities available to retirees is an excellent one. Many retirees prefer to have a regular monthly payment to supplement income rather than a lump sum to invest. It has been suggested that payouts from KiwiSaver could be part lump sum and part annuity.

While much progress has been made to introduce financial literacy into the school curriculum, the SWG has gone one step further and suggested that financial education be compulsory in schools. This is to be applauded. Increasing the level of knowledge of financial matters is critical for changing attitudes towards saving and thereby securing the financial future of our nation.

Money is tight, households have stopped spending on all but essentials and some are taking mortgage payment ‘holidays’ to give them some breathing space.

Jobs don’t appear to have been lost yet, but it may take more than tax cuts and a change of government to avoid job losses as the recession bites in.

This is all bad news. The thing is though, recessions are part of the natural economic cycle. Without recessions, we wouldn’t have growth; without the bad times, we wouldn’t have the good times. Every downturn has its upside.

The good news about a recession is that it forces you to focus on what is really important and to review just about every aspect of your life; from what you eat, to what you drive, where you live and how you earn your living.

A recession is a time of re-evaluation that allows you to improve your life.

Starting with the basics, review what’s in your grocery cart. Now is the time to leave out expensive processed foods and go for a natural diet. There’s a noticeable trend towards people growing their own vegetables and becoming more self sufficient. Not only will this save you money, but your health will benefit too!

Trains and other forms of public transport are noticeably more crowded since petrol prices went up. Walking to and from stations and bus stops or even walking or cycling to work are not just opportunities to save money but opportunities to improve your fitness.

One of the best features of a recession is that the pace of life slows down.

When the economy is booming, there’s a rush to be first. If you don’t act quickly, you miss out on job opportunities, the beautiful house you wanted to buy or the business opportunity you thought no-one else had spotted yet.

In a recession, it’s as if everything is in slow motion. You can take your time putting an offer in on a house because you know there isn’t a queue of potential buyers and you can research your business opportunity before you take the plunge.

If you have skills in marketing, management, financial analysis or other specialist fields you will be in demand by businesses looking to improve their sales and efficiency.

Businesses that employ smart people will emerge from a recession as the winners, so update your CV and sell your skills! Not only could you potentially increase your pay, but by working for a switched on company your job may well be more secure.

Recessions are full of opportunities to invest and get ahead. If you’ve been thinking about moving to a more expensive house and you can afford to upgrade, now is the time to consider it. You may be able to pick up a bargain if you are a good negotiator.

Investment properties are looking a lot more attractive for the long term investor, with property prices and interest rates trending down and rents trending up.

Share prices are also looking good when compared with expected future company earnings. If you have joined KiwiSaver, your regular monthly contributions will be allowing you to buy a lot more units for your dollar, which you will get the benefit of when unit prices increase over the next year or two.

The next few months will be a bargain hunter’s paradise, so make the most of it and get all the upside you can out of the downturn.