Saving for retirement has remained at the forefront of financial priorities for New Zealanders, as outlined in a new report by the Retirement Commission.
Latest insights on how New Zealanders feel financially have revealed that despite more than half describing their position as uncomfortable, they are still actively saving for retirement.
Te Ara Ahunga Ora Retirement Commission has used research agency TRA to survey 3000 New Zealanders a year about a range of money matters.
The latest findings show that 56 percent of New Zealanders describe their financial position as uncomfortable, however the economic pain is not felt evenly. Financial discomfort for women has significantly worsened since 2022, from 51 percent to 60 percent. Not surprisingly, then, 64 percent of women report feeling financial stress.
Those in the 18 to 35 age group are also feeling the squeeze, with 54 percent now reporting they feel uncomfortable, up from 46 percent in 2022, and 82 percent feeling financial stress, up from 76 percent in 2022.
Sorted Personal Finance Lead Tom Hartmann said although it’s quite concerning to see so many New Zealanders struggling financially, it was good that some could still manage to actively save for the long term.
“Our insights reveal half the population are actively saving for retirement and this has remained constant despite the increasingly challenging economic times. There are also more people setting long-term financial goals and actively striving to achieve them compared to the previous year, which is fantastic given the climate we’re in,” said Hartmann.
“Unfortunately, although we are seeing some positive money habits, we do still have half of the population not actively saving for the long term.”
Compared to previous years, 59 percent of people in 2024 had set long-term financial goals compared to 54 percent in 2022. Five percent more of respondents compared to previous years said they had a growing interest about planning for their retirement.
The report found that a third of New Zealanders are worried about their level of debt, which is higher for those with mortgages. Financial discomfort had also increased year on year among those who have a mortgage (56 percent).
Only 49 percent of respondents said they could manage with an unexpected expense, and that more New Zealanders had tried to reduce their debt over time.
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