All age groups in New Zealand are facing financial challenges, according to the latest "Money & You" research series published by the Financial Services Council (FSC) of New Zealand.
94% of respondents are concerned about financial issues: Respondents cited the cost of living as their top financial concern, followed by inflation and house prices.
This year’s edition “Consumer Resilience and the Road to Prosperity” centres on the financial capability and resilience of all New Zealanders in the short, medium and long term.
Other major findings are:
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Significant economic impact: 54% of respondents reported that the economy has had a negative impact on their personal finances.
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Changing spending habits: Concerningly across all income bands, some New Zealanders are skipping meals, limiting heating, and avoiding medical treatment due to financial pressures.
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Renters struggling more: Renters are less likely to manage through these tough financial conditions compared to homeowners.
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Rising debt concerns: While most respondents have managed to service their debt repayments over the past year, 24% are uncertain about their future ability to do so.
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Decreased emergency savings: All age groups reported a decline in their ability to access a month’s worth of income for emergencies, with retirees particularly affected in maintaining their lifestyle through retirement savings.
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Positive signs and green shoots: Respondents reported higher
investment levels, with KiwiSaver being the investment of choice.
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Long-term savings are not enough: For many individuals, the current level of KiwiSaver participation and contribution means they won’t have a dignified retirement, resulting in a reliance for a growing number of ageing Kiwis on NZ Super, social support or finding other forms of income to fund retirement.
Length of maintaining lifestyle with current retirement savings
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Length of time
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2024
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2023
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2022
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Less than 1 year
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20%
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16%
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11%
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1-2 years
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10%
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10%
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9%
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3-10 years
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31%
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30%
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33%
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More than 10 years
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37%
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43%
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49%
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Source: FSC - “Money & You - “Consumer Resilience and the Road to Prosperity”
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The research was conducted via an online survey developed and hosted by CoreData. 2024 data were collected between 15 March and 26 March. A total of 2,002 valid complete responses were collected in March 2024. All samples are representative of the New Zealand consumer population in terms of age, gender and income based on the latest Stats NZ data.
2022 data was collected between 25 January and 31 January. A total of 2,000 valid complete responses were collected in January 2022.
2023 data was collected between 7 March and 12 March. A total of 2,030 valid complete responses were collected in March 2023.