Despite cost of living crisis, half of population saves for retirement

photo: 123 RF

The Retirement Commission said the fact that around half the population was still saving for retirement despite the current cost of living crisis showed people were resilient.

New research by the council found more than half of the 3,000 people surveyed described their financial situation as “uncomfortable”.

Tom Hartmann, the council’s head of personal finance, said women felt it more strongly, as did young people aged 18 to 35.

“Financial discomfort among women has increased significantly… Since 2022, it has increased from 51% to 60%, and 64% of women report feeling financially stressed,” Hartman told Business Insider. Midday report.

“While it’s certainly concerning to see so many New Zealanders struggling financially, it’s also good to see those who are still actively saving for the long term.”

The survey showed that half of the population is saving for retirement and setting long-term financial goals, a proportion that will rise from 54% to 59% in 2022.

That they were able to do this despite economic concerns speaks to the resilience of people in this area, Hartman said.

The findings also showed New Zealanders – particularly those aged 18-34 and Pacific Islanders – were trying to reduce their debt products over time.

Many (76%) choose to save for big-ticket purchases rather than borrowing to buy them.