This was one of Newshub's top stories of 2023. It was originally published on March 23.
Despite a tumultuous few years of COVID-19, inflation and threats of a looming recession, many Kiwis have managed to dig deep into their pockets and put aside money, a new report has found.
But concerningly, a chunk of New Zealanders aren't saving a cent.
Canstar has released its latest Consumer Pulse Report on Tuesday which tracks the financial sentiments of Kiwis. It found New Zealand household saving levels were higher in 2022 than pre-COVID levels with nearly one-third of Kiwis managing to save around 10 percent of their income, while 15 percent managed to save one-fifth.
Over a third (36 percent) of Kiwis said they're saving the same or more than usual.
Another third (34 percent) said they have dipped into their savings, while nearly one in five (18 percent) have taken on debt.
The report found households are putting away nearly $500 a month on average, while Aucklanders are saving a bit more at $523 a month.
It found men save more than women, $560 and $447, respectively, and high-earning households (($120,000+) save nearly $750 a month.
However, one-quarter of New Zealanders aren't saving a cent.
The cost of groceries and mortgages is what's worrying Kiwis the most financially, with 28 percent of respondents saying they aren't living within their means.
According to the report, the top reason Kiwis aren't saving is because they live payday to payday (43 percent), followed by saving not being a financial goal (18 percent). While 11 percent of non-savers said they have saved enough already.
The number of people who are free of personal debt remains steady at around 44 percent, the report said. Of those in debt, the majority (59 percent) said they never miss repayments while just under one in five said they miss repayments only rarely.
Unfortunately, seven percent of respondents always miss repayments, however, that figure is down from 19 percent the previous year.
The report also found more men miss repayments (15 percent) than women (four percent).
Despite these figures, 80 percent believe their debt is manageable.
What we are saving for
Nearly half of Kiwis said they are saving for a major expense.
Over one-quarter of respondents were saving for an international holiday, followed by 13 percent saving for a car. The number of people saving for a domestic holiday, home renovations or investment property was eight percent.
While 24 percent of those who are saving for a first home are putting away less than 10 percent of their income. Another quarter is saving between 10 and 20 percent of their income, while another 20 percent are saving between 20 and 30 percent.
The report also found Kiwis are really worried about saving for retirement.
The report said New Zealanders need roughly need $457,000 in savings and KiwiSaver to fund their retirements, that figure jumping to nearly $600,000 for those in their 60s.
However, only 41 percent of respondents feel confident they are on track to raise the funds they need. Concerningly, around 55 percent of 30 to 60 years said they are not on track to meet their goals and more woman (52 percent) than men (43 percent) said they are behind where they want to be.
Investing
Investing seems to be on the decline, with a huge 76 percent of Kiwis saying they don't invest in the share market.
"Our discretionary spending power is shrinking and a global downturn looms. It seems many older Kiwis, faced with rising living costs, are responding by pulling back on investments into the sharemarket," the report said.
Back in 2021, those in their 30s and 40s were the most active investors with over 40 percent were dabbling in the share market, compared to less than 30 percent now.
Men remain more active, with 29 percent investing, compared to 21 percent of women.
The younger generations, still struggling to crack into the property markets, are looking to sharemarkets for the first time, the report said. Of the under 30s who had purchased shares, 56 percent were doing so for the first time. They are also the heaviest users of micro-investing platforms.
