Investments – New research shows more people planning for their retirement despite cost-of-living woes

Latest insights on how New Zealanders are feeling financially has revealed that despite more than half describing their position as uncomfortable, they are still actively saving for retirement.

Te Ara Ahunga Ora Retirement Commission uses research agency TRA to survey 3000 New Zealanders a year about a range of money matters.

The latest findings show that 56% 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% to 60%. Not surprisingly, then, 64% of women report feeling financial stress.

Those in the 18–35 age group are also feeling the squeeze, with 54% now reporting they feel uncomfortable, up from 46% in 2022, and 82% feeling financial stress, up from 76% in 2022.

Sorted Personal Finance Lead Tom Hartmann says, “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.

“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 previous year, which is fantastic given the climate we’re in.

“Unfortunately, although we are seeing some positive money habits, we do still have half of the population not actively saving for the long term.”
Other key insights:

• Compared to previous years, more people are setting long-term financial goals – 59% compared to 54% in 2022
• There’s also growing interest in information about planning for retirement – 34% compared to 29%
• 49% say they are actively saving for their retirement
• Financial discomfort is increasing year on year among those who have a mortgage (56%), but remains the highest for renters (67%)
• A third of New Zealanders are worried about their level of debt – higher for those with mortgages
• Instead of going into debt for big purchases, many are now saving first – 76% compared to 70% in 2022
• Only 49% of New Zealanders say they can manage with an unexpected expense
• New Zealanders are trying to reduce their debt products over time – particularly 18-34s and Pasifika.

The release of the ‘Money matters: How New Zealanders are feeling financially in 2024’ coincides with the Retirement Commission’s annual Sorted Money Month campaign. The annual public awareness campaign runs throughout August and encourages New Zealanders to make any excuse to hit pause and get their money sorted.