70% of Kiwis are worrying about money, driven by high inflation, high interest rates and job security concerns

The Financial Services Council’s (FSC) latest Financial Resilience Index tracker indicates that the outcomes of some economic decisions made since the start of the pandemic are really biting across New Zealand. 

• The number of New Zealanders worrying about money either daily, weekly, or monthly is the highest since 2020 at 70%. 
• The majority of New Zealanders are concerned about inflation (89.6%) and interest rates (75.6%). 
• Confidence in job security has started to fall at 85%, down from a high of 89% in 2023.  
• More respondents have personal debt than reported last year (up 6%), and more said they had one month or less of savings to maintain their current lifestyle should they lose their job. 
• For renters, close to 60% of respondents said meeting their living expenses is currently somewhat or very difficult. 
• A fifth of all retired respondents said they only have enough savings to maintain their current lifestyle for less than a year. 

 Richard Klipin, CEO of the FSC, said, “this latest research shows many New Zealanders are increasingly under pressure, making dealing with the daily stresses and strains of the cost-of-living crisis extremely difficult. 

‘Job security is key to financial security but with unemployment on the rise and job security declining, 70% of us are now worrying about money daily, weekly, or monthly, up from 60% in 2020. 

‘1 in 5 retirees said they only had enough savings to maintain their current lifestyle for less than a year,” continued Klipin. 

The research highlights that most homeowners are keeping their head above water, however the real strain is for New Zealand’s renters who are finding it more difficult to pay their bills. 

Klipin continued, “whilst homeowners are under stress with mortgage rate increases, we are still seeing the younger generations and renters disproportionally bearing the burden of this economic cycle.  

‘Despite these challenges, it pays to remember that the markets fluctuate and undergo cycles. Whilst things might be challenging right now, eventually the pendulum will swing the other way.   

‘The sector stands ready to help, and we urge anyone that is in difficulty to speak to their providers, a financial adviser or one of the many helplines available who will be able to help.” concluded Klipin. 

ENDS

TOP TIPS 

• You are not alone: 

Pick up the phone to your providers or seek help from an adviser, things may be tough, but they can help to put a plan in place to ease the financial burden and plot a path for the coming months. 

• Health check your outgoings: 

Many are finding it hard to put money aside, with things to pay for today at odds with putting savings away for the unexpected. Check your bank account, income, and outgoings to see if there is anything you are paying for you no longer use or need in the short-term.   

• Talk to someone about debt, sooner rather than later: 

Speak to your whānau and friends or others that can help. For example, MoneyTalks (0800 345 123) offers a free service for those needing help with day-to-day money matters such as managing debt or budgeting, and DebtFix (0800 3328 101) offers free advice and provides options to help you manage debt.