We have published new research that reveals while many New Zealanders feel confident in their financial decisions, there are significant gaps between their financial goals and actual holdings of investment products.
Good Cents: Kiwis on Savings and Debt looks into New Zealanders' attitudes and behaviours towards savings, debt reduction, and financial guidance.
The research presents a snapshot of how New Zealanders approach their financial balance sheet. By asking about both their attitudes and their experiences in the same survey, we can observe any gaps between what respondents say they value and what they report doing in practice.
It found that New Zealand consumers feel well-informed and well-supported when it comes to managing their finances and they're happy with their understanding and confidence around savings and debt.
There were some areas for improvement though - aligning investment choices with financial goals, enhancing understanding of debt management, and increasing comfort with seeking financial information.
Stated financial goals didn't always match investment behaviours, or understanding of key financial concepts. There was a disconnect between preferences and investment choices.
While there was a strong interest in financial advice, many were hesitant to discuss their personal financial circumstances with others.
Other findings included:
- 1 in 6 New Zealanders felt they are sinking financially
- More than half of New Zealanders strategically pay off high interest debt first
- 2 in 3 were open to receiving financial guidance, despite 42% saying they feel uncomfortable discussing their finances
- Active investment in higher risk and return products like shares is less common, despite high returns being a priority for nearly half our respondents
Despite challenges, New Zealanders are pretty hopeful. We found 66% of New Zealanders, regardless of financial status, are actively looking for ways to improve their financial situation.
As the Conduct of Financial Institutions (CoFI) regime comes into effect, the FMA is entering a new phase of engagement with banks and other lenders to elevate conduct standards across the sector.
The addition of the Credit Contracts and Consumer Finance Act (CCCFA) to our mandate will further enhance the FMA's role in protecting consumers.
Download the Good Cents research [PDF 676KB]
Download the Good Cents data book [xlsx 255KB]
