New Zealanders are increasingly pessimistic about their financial position as a result of Covid-19, according to a report released by Cigna New Zealand.
Its Covid-19 Global Impact Study examines the impact of the pandemic on peoples’ financial and personal well-being and reveals that half those surveyed are worried about their ability to cope if they lose their job.
Cigna NZ’s CEO Gail Costa says: “In times of economic uncertainty good advice is critical to growing financial confidence.
“We’ll be using this research to support our customers and the adviser community as we work together to navigate this challenging environment and support New Zealanders with quality financial advice that will protect them now and into the future.”
In times of economic uncertainty good advice is critical to growing financial confidence…
The study draws on data collected from more than 20,000 people worldwide, including a total of 1,612 New Zealanders across three separate surveys, carried out between May and August.
Key take-aways from New Zealanders include:
- 41 per cent claimed to be in a fair or poor situation in August compared to 34 per cent in January
- Almost half say they’re in a fair or poor financial position to manage the impacts of the current economic environment – increasing from 41 per cent in January to 49 per cent in August
- Less than half believe they’re in an excellent or very good position to pay their mortgage. Down from 40 per cent in January to 31 per cent in June, before bouncing back in early August to 38 per cent
- More than one third believe their ability to pay for their families’ medical needs is fair or poor
- Half believe their financial ability to cope in an emergency or being out of work would be fair or poor
- A third believe they’ll change the way they manage their finances once Covid-19 is contained
Cigna NZ says the impacts of Covid-19 on New Zealanders’ financial well-being fall broadly inline when compared to other countries included in the survey.
Across all markets surveyed, 49 per cent of respondents continue to have the worst possible outlook on how the economic environment will impact their financial situation and their ability to maintain current standards of living.
Download the full report here.