by Andrea Malcolm
Early data shows 39% of respondents are not able to access money in an emergency (a key indicator for financial resilience and preparedness); up 5% since 2022. This equates to more than 1.5 million Kiwis, not being able to pull together $5,000 within a week without going into debt if they have to pay for something unexpectedly.
The FSC says the figure, which was 34% one year ago, indicates that we’re less prepared for financial shocks than in 2022. The reality is there are trade-offs between balancing shorter-term and longer-term needs, and there are really tough decisions to make to balance them.
FSC chief executive, Richard Klipin, says, “The last year has been incredibly tough for Kiwis with the cost of living going up, the increasing interest rates, and the growing risk of the economy tipping into recession, the focus has clearly gone onto household finances.
“However, as we continue to experience an uncertain economic period, getting recession ready is important for all New Zealanders. Preparing isn’t just about looking after your money – it’s also about looking after you and those you love.”
The FSC is advising the public to:
There’s no better time to start funnelling a bit of each paycheck into a savings account.
Those coming up for mortgage rate renewal soon should talk to their mortgage adviser or bank about what they can do to prepare.
Review KiwiSaver settings and if there are questions talk to the provider or a financial adviser about what options are available.
MoneyTalks (0800 345 123) offers a free service for those needing help with day-to-day money matters such as managing debt or budgeting.
Remember that the markets fluctuate and undergo cycles.
The Financial Services Council’s 2023 Financial Resilience Index research report will be released on Wednesday 3 May 2023.
| « New financial advice diploma | Tough times ahead for NZ economy: Nikko economist » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved