Source: Te Ara Ahunga Ora Retirement Commission
New research from Te Ara Ahunga Ora Retirement Commission reveals 55% of New Zealanders who have set up an emergency fund in the last three months can easily find money to cover an unexpected expense.
However, only 22% of New Zealanders who feel unlikely to set up an emergency fund can do the same.
The new research has been released as the Retirement Commission’s annual Sorted Money Month campaign kicks off on 1 August.
The theme for Money Month this year is emergency savings and coincides with the release of the new, free Sorted Buffer builder
app, which helps New Zealanders automatically grow a cash cushion to cope with unexpected costs.
The new research from the Retirement Commission’s Financial Sentiment Tracker reveals the positive difference keeping emergency savings can make.
Retirement Commissioner David Boyle says having an emergency fund helps build financial resilience and creates a safety net to help absorb life’s unexpected expenses.
“Having an emergency fund reduces financial stress and helps you handle unexpected life events. Knowing you have money set aside specifically for unexpected expenses brings a sense of confidence and control.”
He says an emergency fund can help people avoid crisis borrowing and expensive debt when things go wrong, especially in the current challenging economic conditions.
“It also prevents people having to touch their KiwiSaver or withdraw from their long-term investments, so financial resilience ends up helping their future self to enjoy a better retirement outcome when they stop work.”
The new research found that in the year to June 2026, 62% of Kiwis have an emergency fund (compared to 58% the previous year).
“Whether it’s losing your job, needing a new car tyre or having to buy a new washing machine, an emergency fund provides peace of mind knowing you have money set aside to deal with life’s curveballs,” David says.
“Financial resilience is not about being wealthy, it’s about being prepared and it also reduces your financial stress which positively impacts your greater wellbeing.”
The new research also found that just having an emergency fund set up was associated with more positive financial sentiment.
It found that 59% of New Zealanders with a growing or sufficiently sized emergency fund feel very optimistic and confident about their future.
And 54% of New Zealanders who have set up an emergency fund within the last three months feel the same.
However, only 25% of New Zealanders who feel unlikely to set one up feel very optimistic or confident about their future.
This shows that people who have recently set up an emergency fund feel quite similarly to those who have an established emergency fund, so just setting one up is a great first step to make them feel more positive about their financial future.
The Sorted Buffer builder app was developed by Christians Against Poverty NZ (CAP) in partnership with the Retirement Commission, with some funding from Simplicity Foundation. The app connects to a user’s bank through Akahu, New Zealand’s open banking service.
CAP CEO Sam Garaway says an emergency fund helps people weather life’s storms and prevents them from tipping into financial hardship.
“We all know how challenging forming a habit can be. The Buffer builder app takes the friction out of saving by combining secure open banking technology with insights from CAP and Sorted to make savings automatic and easy.”
Sam says the number of people receiving CAP Debt Help is at a seven-year high.
“We’re hearing just how tough things are right now. With rising living costs and existing debt, it only takes a fall in income or a costly life event to send them into chaos,” Sam says.
Sorted Personal Finance Lead Tom Hartmann says even a modest emergency fund can provide breathing room.
“That’s why this Money Month we’re introducing Sorted’s Buffer builder app, so that people can more easily grow their emergency savings by paying themselves first, rounding up their spending, and topping up when they can. The app uses open banking data and AI to adapt to spending patterns and sets targets that make sense, wherever someone is at on their emergency savings journey.”
Simplicity Head of Education Jennie O’Donovan says Simplicity supported the creation of the Buffer builder app as it’s alarming to see how many New Zealanders struggle with an unexpected financial event.
“One of the big takeaways with the app is that your emergency fund doesn’t need to be built overnight. We know that having a clear goal and seeing progress makes saving feel much more achievable which ultimately buys you time and choices when the unexpected happens. We want that for all New Zealanders, which is why the Simplicity Foundation has supported this project.”
The financial sector and local grassroots communities are supporting Money Month with events and programmes across the country. These events can be found on the Sorted event calendar, allowing people to find out what is happening locally and get involved.
Notes to Editors
This research comes from the Retirement Commission’s Financial Sentiment Tracker, which surveyed approximately 4,000 New Zealanders aged 18+ across the year to June 2026.
About Te Ara Ahunga Ora Retirement Commission
Te Ara Ahunga Ora Retirement Commission aims to help New Zealanders to retire with confidence. Retiring with confidence means New Zealanders feel secure they’ll have resources to live and the know-how to make ends meet. We focus on three areas: Retirement Income Policies, Retirement Villages and Financial Capability. Te Ara Ahunga Ora runs Sorted, Sorted at Work, Sorted in Communities and Te whai hua – kia ora, Sorted in Schools and is responsible for the National Strategy for Financial Capability.
About Sorted
Sorted is a free service run by Te Ara Ahunga Ora Retirement Commission, the government-funded, independent agency dedicated to helping New Zealanders get ahead financially. As New Zealand’s trusted personal finance site, Sorted has the information needed to tackle debt, plan and budget, save and invest, optimise KiwiSaver, plan for retirement, protect wealth, and manage a mortgage. Providing tools, guides and blogs, Sorted serves 1.5 million Kiwi each year.
About Christians Against Poverty NZ (CAP)
CAP is a charity that offers free, confidential Debt Help and Financial Mentoring services for whānau in unmanageable debt. CAP Debt Help operates in 40+ locations across the motu, in partnership with local churches. Since launching in Aotearoa in 2007, over 4,700 households have been supported from money chaos to thriving. And 20,000+ New Zealanders have taken a free CAP Money course helping them to spend, budget and save well.