The number of New Zealanders worrying about money is the highest since 2020 according to the FSC’s latest Financial Resilience Index. Its annual survey, first published four years ago, tracks financial confidence, financial literacy, financial preparedness, job security and wellbeing.
Its 2024 report states 70% of the adult population have money worries, 89% are concerned about inflation, and interest rates are front-of-mind for 75% of respondents.
With the Reserve Bank and the government pulling levers to control inflation and reduce spending, confidence in job security has started to fall – down from 89% in 2023 to 85%, states the report.
FSC data also shows more respondents have personal debt than last year (up 6%), and an increased number have one month or less of savings to maintain their lifestyle should they lose their job.
For renters, close to 60% admitted that meeting their living expenses is 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, who stepped down as the organisation’s CEO this week, said New Zealanders are increasingly under pressure.
“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,” he said.
FSC research highlights that while most homeowners are keeping their heads above water, renters are the ones feeling the strain.
“We are still seeing the younger generations and renters disproportionally bearing the burden of this economic cycle,” said Klipin.
He urges anyone in financial difficulty to speak to their providers, a financial adviser, or to call one of the many helplines available.
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About the research: The research was conducted via an online survey developed and hosted by CoreData. 2024 data was collected between 15 March and 26 March. A total of 2002 valid complete responses were collected.
All samples are representative of the New Zealand consumer population in terms of age, gender and income based on the latest Stats NZ data. The data collected forms the basis of this report. According to Stats NZ, in March 2023 there was an estimated resident population of 5,199,100. As this survey only included respondents aged 18 years old or over, the estimated resident population of the sample is 4,053,900.