New research has revealed that 77% of New Zealanders under 37 years of age worry about money daily, weekly or monthly, as the impacts of COVID-19 continue to weigh heavily on the general population.
The research is part of the latest Financial Resilience Index released by New Zealand’s Financial Services Council (FSC).
According to FSC CEO Richard Klipin, this could be attributed to a diverse set of reasons but are likely to include include concern over the ability to purchase a first home, the stress of taking on a significant mortgage debt in order to get on the property ladder, and general worry about providing for a family, job security and saving for the future.
He added that while financial worries are most apparent in younger generations, Gen X and Baby Boomers have not been spared, and are worrying about money more now than they did a year ago.
“There is a silver lining, though. One area where we’re demonstrating resilience is job security, which is actually higher now than it was last year. Comparing data from April 2021 with April last year, we can see that job security is slowly rising, reflecting recent unemployment figures and economic growth forecasts,” he said.
“Feelings of preparedness for retirement have remained stable, however still only 44% of New Zealanders feel they are financially prepared for retirement, so this indicator remains a concern. In addition, financial confidence has decreased, overall financial literacy has dropped and the impact of financial issues on our physical and mental health, and on our relationships, is on the rise.
“Therefore, while our findings suggest we’re making strides in some areas, they also highlight that there is more to be done to support the public in building knowledge and gaining confidence when it comes to their finances. What remains clear from the latest survey results is the connection between money and our wellbeing, with over 55% of New Zealanders saying that financial issues have adversely affected their overall wellbeing.”
The Financial Resilience Index is a major tracking survey of New Zealanders’ views on five key financial resilience indicators: financial confidence, financial literacy, financial preparedness, job security and wellbeing.