Approximately 1 in 4 (26%) of Kiwis are struggling to manage their finances, Ipsos New Zealand’s latest edition of Understanding Aotearoa New Zealand: Cost of Living report has found.
The survey, which monitors New Zealanders’ perceptions of their finances and their expectations for the upcoming year, indicated that this figure has remained fairly consistent over the past two years; however, it reflects a 6 percentage point increase since tracking started in May 2022.
Low-income households are particularly impacted by financial challenges, experiencing a 13 percentage point rise in the number of individuals reporting difficulties since May 2022.
47% of individuals express concerns about their job security, with women (54%) being notably more anxious than men (39%).
Two out of three people (65%) also anticipate that unemployment will increase over the next year.
“Much of the uncertainty we are seeing in this report is coming from a belief that unemployment will continue to rise in New Zealand this year, and this sentiment seems to be particularly impacting women, with 54% worried about their own job security. This could be a carry-over from Covid when we saw underutilisation rates disproportionately impacting women,” Amanda Dudding, Executive Director of Public Affairs, Ipsos New Zealand, said.
41% believe their disposable income will decline in the coming year, while less than a quarter (22%) expect an enhancement in their standard of living.
The majority of New Zealanders expect household expenses to rise, particularly for essentials such as food (80%), utilities (80%), and general household shopping (75%).
The global economy is seen as the leading factor driving the cost of living in New Zealand, with 80% attributing it to this issue. Interest rates and government policies follow closely, cited by 73% as contributing factors.