David McLean warns that unless New Zealanders increase their savings, the country will not have sufficient capital to grow businesses and create economic growth.
McLean - who is chief executive of Westpac Institutional Bank - says that compared to Australia, a lot more savings investment in New Zealand goes directly into business.
"Much of the New Zealand business market are SMESs that are owned by families who put the money in," observes McLean. "That's good. It's just as good as saving in a super fund. And both of these are better than saving in your house."
"That just stimulates the housing boom but does nothing for growth."
He is disappointed that National leader John Key will not talk about raising the age of entitlement to NZ Superannuation (National Super) above 65 years. "Not moving it up is just unsustainable. The rest of the world's doing it. It's a fact of demographics. It's just unarguable."