According to a recent report* by the Financial Services Council (FSC), despite these turbulent economic times, New Zealanders’ financial confidence has increased compared to 2020. But there are also concerns to address. For more on this, here’s our summary of key findings.
While job security continues to rise in New Zealand, with 86% of respondents feeling secure in their job, uncertainty remains in other areas.
This year, the FSC dug deeper into Kiwis’ views of our economy, the impact of Covid-19, and preparedness for an unexpected event. And here’s what they found:
“Inflation worries are not unique to New Zealand and with interest rates increasing to accommodate this, as well as the geopolitical instability caused by events in the Ukraine, means we will have to live in increasing volatile times,” commented Ryan Bessemer, chief executive officer, Trustees Executors.
Compared to March 2020, a bigger proportion of respondents were confident about their finances (86%, up 8%). But, as the FSC pointed out, this increase may not paint the whole picture.
For example, the survey also found that financial literacy dropped by 5% compared to previous years. And around half of respondents (47%) reported having financial issues that are affecting their personal wellbeing.
What’s more, other responses indicate a lack of protection from the unexpected:
How long could you cope financially without an income? If you’d like to assess your protection gaps, this is a key question to ask yourself. And if you need a more comprehensive assessment of your most likely risks, we’re always here to help.
The past couple of years highlighted the importance of financial protection from the unexpected – especially now that wages are growing at half the rate of inflation.
If you’re working on a tighter budget with reduced wiggle room, having a plan is all-the-more crucial. The goal is to have an appropriate combination of insurance and emergency funds to cover your most likely risks. And as the FSC pointed out in their report, arguably, there has never been a more important time for Kiwis to be able to access quality advice.
Like to review your cover or explore new options? Get in touch. As insurance advisers, we’re here to help you secure your financial future.
*Methodology: 2022 data was collected between 25 January and 31 January 2022, with a total of 2,000 valid complete responses being collected in January 2022.
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