Financial anxieties, coping strategies of Kiwis revealed
Canstar’s third nationwide Consumer Pulse survey has delivered a stark outlook on New Zealanders’ financial wellbeing, with 70% of respondents reporting no relief from the escalating cost of living.
Nearly half anticipate no easing of pressures in the coming year, with women displaying more pessimism than men.
Among the 25% who experienced financial relief, the majority attributed it to personal cost-cutting measures, while 40% benefited from an increase in income.
Groceries over mortgages
Unexpectedly, the survey indicated that grocery prices top the list of financial concerns, with 28% of Kiwis ranking the stress of supermarket check-outs higher than rent or mortgage expenses.
Homeowners are feeling the pinch, with more than a third experiencing a 30% to 50% hike in mortgage repayments upon refinancing. A smaller fraction (9%) faced even steeper increases of more than 50%.
To keep up with surging housing costs, half of homeowners have reduced non-essential spending, including dining out, entertainment, and fashion. An additional 20% have made deeper cuts, scaling back on essentials such as groceries, electricity, and phone services, the Canstar survey found.
Retirement savings shortfall
The report also shed light on the retirement preparedness of New Zealanders, revealing a stark gap between expectations and reality. The average Kiwi believed they would need just over $470,000 for retirement, yet fewer than one in three (29%) felt they were on track to achieve this goal.
Proactive budgeting amidst financial squeeze
Bruce Pitchers (pictured above), Canstar New Zealand content and editorial manager, reflected on the resilience and proactive measures Kiwis have taken in response to these financial strains.
“This year, the report shows the stark reality of our financial pressures, but also reveals how resilient we are, and how proactive we’ve been with our budgeting,” Pitchers said.
He also noted the gender disparities in financial stress responses, with women displaying heightened worry and caution.
Access the Canstar report in full here.
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