Many New Zealanders are feeling the financial strain and dipping into their available savings, and older adults and senior citizens are no exception.
Acting Chief Executive Officer of the Financial Services Council (FSC), Haydee Stroud, said, “The reality is stark: 94 per cent of New Zealanders are concerned about their finances, and many are being forced to adjust their spending habits out of necessity.”
This comes from the FSC’s latest Money & You research, which shows how many Kiwis are facing the choice between relieving their immediate financial pressures and saving for the future.
“While some New Zealanders can cut back on non-essential purchases like takeaways and treats, others are confronting difficult decisions, such as whether to heat their homes (24 per cent) or afford essential medications (16 per cent).”
Investment Levels Falling Short
“One key finding is that the amount of income that can be accessed within a week has decreased across all age groups compared to previous years.
“For retirees, one in five reports having less than a year’s worth of retirement savings to maintain their current lifestyle,” says Stroud.
“KiwiSaver remains the most popular investment in New Zealand, with 79 per cent of New Zealanders participating and saving for their retirement.
“However, individual investment levels are falling short of what’s needed for a comfortable retirement.
“Our research consistently shows that New Zealanders aren’t prepared for retirement, which is why we continue to call for a review of KiwiSaver settings.
“A review would future-proof the scheme and help New Zealanders in the long-term, no matter the economic climate.”
“Whether your concerns are about the short-term cost-of-living or long-term investment and retirement planning, we encourage you to talk with your whānau, providers, or a registered financial adviser. It will help boost your financial confidence and wellbeing.”
Emergency Funds Declining
The Money & You report shows a decline across all age groups in the ability to access a month’s worth of income in the case of emergencies.
The Financial Services Council reported that renters were less likely to cope with tough financial conditions than homeowners.
Saving three to six months’ worth of living expenses is the general rule of thumb, but that is largely unattainable for most of New Zealand’s population today.
The exact amount everyone has in their savings account varies based on your financial situation, job stability, and personal needs. But for those forced to live paycheck to paycheck, especially retirees, looking ahead is near impossible.
