This despite recent market volatility and the rising cost of living
The majority of Kiwis are staying on top of day-to-day financial commitments and are keeping up their KiwiSaver contributions, despite recent market volatility and the rising cost of living, according to new ANZ research.
People’s overall wellbeing score was 59.7 out of 100 in the September quarter – that compares to 59.9 in the June quarter and 62.3 in the September 2021 quarter, the ANZ Financial Wellbeing Indicator reported.
But when it came to “meeting their commitments,” the score rose to 72.9, from 71.9 in the June quarter – not far below the pre-COVID readings in June 2019 through to March 2020, when the numbers were around 73, said Sharon Zollner, ANZ’s chief economist.
In contrast, the score for “feeling comfortable” dipped to 50.9, from 52.1 in the June quarter, which “could reflect that people are nervous about what’s ahead.”
“The triple whammy of the rising cost of living, higher interest rates, and hits to wealth through falling house prices and falling or flat KiwiSaver balances seems to have created a lot of unease – or at least an absence of comfort, despite plentiful jobs and rising wages,” Zollner said.
The index’s third component, “Resilience,” was almost unchanged at 55.5, compared to 55.6 in the previous quarter.
Meanwhile, customer data from ANZ Investments showed that more than two thirds of ANZ KiwiSaver members are keeping up their contributions.
In the 12 months to September, 72% of members contributed, with 78.5% of members aged 18-65 contributing. The same period also saw 63% of all ANZ KiwiSaver members making employee contributions; with 70% of members aged 18-65 making employee contributions.
ANZ data also showed decreasing voluntary contributions, with 18% of all members making at least one voluntary contribution, down from the contribution rates of more than 30% in early 2021.
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