Kiwis face tough financial choices
A new report from the Financial Services Council (FSC) highlighted the growing financial challenges facing New Zealanders, with 94% expressing concern about their finances.
“Many are being forced to adjust their spending habits out of necessity,” with some cutting back on takeaways while others struggle to afford essentials like heating (24%) and medication (16%), said FSC acting CEO Haydee Stroud (pictured above).
Emergency and retirement savings at risk
The FSC report, Consumer Resilience and the Road to Prosperity, revealed that the amount of income New Zealanders can access within a week has dropped across all age groups.
For retirees, one in five reported having less than a year’s worth of savings to maintain their lifestyle.
“KiwiSaver remains popular, but individual investment levels are falling short of what’s needed for a comfortable retirement,” Stroud said.
See LinkedIn post here.
Call for KiwiSaver review to secure future
Lloyd Kavanagh, partner at MinterEllisonRuddWatts, echoed the need for change, supporting FSC’s call for a review of KiwiSaver.
“People are prioritising immediate needs over future security, but it remains important to build a nest egg if you can,” Kavanagh said. Both FSC and Kavanagh stressed the need for long-term planning despite current economic pressures.
Seek advice to boost financial confidence
Stroud urged New Zealanders to seek financial advice.
“Whether your concerns are about the short-term cost-of-living or long-term retirement planning, we encourage you to talk with your whānau or a registered financial adviser,” she said. “It will help boost your financial confidence and wellbeing.”
Read the FSC blog here. Access the FSC report here.
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