Analyst highlights what this means for the future
New research by Te Ara Ahunga Ora Retirement Commission has revealed that while a majority of New Zealanders feel financially uncomfortable, many are still committed to saving for retirement. The findings, derived from an annual survey conducted by research agency TRA, shed light on the financial pressures affecting New Zealanders amid rising living costs.
The survey, which included responses from 3,000 New Zealanders, has indicated that 56% describe their financial position as uncomfortable. The impact is felt unevenly across different demographics, with financial discomfort notably worsening for women and younger adults. Among women, 60% reported feeling financially uncomfortable, a significant increase from 51% in 2022. Additionally, 64% of women now experience financial stress. Younger adults aged 18–35 are also feeling the pressure, with 54% describing their situation as uncomfortable, up from 46% last year, and 82% reporting financial stress, compared to 76% in 2022.
Tom Hartmann, personal finance lead at Te Ara Ahunga Ora, expressed concern over the growing financial discomfort but highlighted positive trends in long-term financial planning. “Although it’s quite concerning to see so many New Zealanders struggling financially, it’s good to see those who manage to still actively save for the long term,” said Hartmann. “Our insights reveal that half the population is actively saving for retirement, and this has remained constant despite the increasingly challenging economic times.”
Saving for the long term
Key findings from the research include a rise in the number of people setting long-term financial goals, with 59% doing so, up from 54% in 2022. Interest in retirement planning has also grown, with 34% of respondents seeking information on the topic, compared to 29% last year. Despite the financial pressures, 49% of New Zealanders are actively saving for retirement, demonstrating a continued focus on long-term financial security.
However, the report also highlighted ongoing challenges. Financial discomfort remains high among those with mortgages, with 56% reporting difficulties, and is even more pronounced among renters, 67% of whom feel financially uncomfortable. Debt remains a concern for many, with a third of New Zealanders worried about their level of debt, particularly those with mortgages. Additionally, only 49% of respondents feel they could manage an unexpected expense.
Amidst these challenges, New Zealanders are adjusting their money habits. This year, 76% of respondents are saving for big purchases instead of going into debt, up from 70% in 2022. This shift reflects a growing emphasis on financial prudence in response to economic pressures.
The release of the report, titled “Money matters: How New Zealanders are feeling financially in 2024,” coincides with the Retirement Commission’s annual Sorted Money Month campaign. Running throughout August, the campaign encourages New Zealanders to pause and assess their financial situation, promoting better money management in an increasingly uncertain economic climate.
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