SoFIE shows we're getting better off

The latest data from SoFIE – the Survey of Family, Income and Employment being run by Statistics New Zealand - further underlines the dominance of property as the main way New Zealanders save.

Thursday, November 17th 2005, 6:20AM

by Rob Hosking

The study is being run over a number of years, with the first wave of data being collected between October 2002 and October 2003.

This latest batch shows that of the total value of assets held by New Zealand individuals at $556 billion, of which $246 billion is in residential property.

By contrast, the value held in superannuation assets is $11.9 billion. Investments in other financial assets is just over $28 billion, while the amount held in life insurance is just under $124 billion.

On an average individual basis, the median dollar value of these assets in the crucial 45-64 age group is $125,000 in residential property, dropping to $111,000 for the over 65s; just under $23,000 in superannuation for 45-64 year old and rising to $70,000 for the over 65s; $9,000 for other financial assets, rising to $12,000 for the over 65s; and $15,000 for life insurance for the 45-64 group, dropping to just under $10,000 for the over 65s.

Those in the 45-64 group had the largest median overall value of assets, at $188,700.

As you would expect, the median net worth increases as people get older, peaking in the 45-64 group at $155,800 then declining slightly to $149,500 for the over 65s.

The SoFIE study is a longitudinal one, which involves surveying the same respondents over a number of years to measure how their individual and family circumstances change over time.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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