Financial Services Council data reveal financial resilience slipping

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.”