29 May 2025

Good Cents: New research on New Zealanders, savings and debt

We have published new research that reveals while many New Zealanders feel confident in their financial decisions, there are significant gaps between their financial goals and actual holdings of investment products.    

Good Cents: Kiwis on Savings and Debt looks into New Zealanders' attitudes and behaviours towards savings, debt reduction, and financial guidance.   

The research presents a snapshot of how New Zealanders approach their financial balance sheet. By asking about both their attitudes and their experiences in the same survey, we can observe any gaps between what respondents say they value and what they report doing in practice.

It found that New Zealand consumers feel well-informed and well-supported when it comes to managing their finances and they’re happy with their understanding and confidence around savings and debt.  

There were some areas for improvement though - aligning investment choices with financial goals, enhancing understanding of debt management, and increasing comfort with seeking financial information.  

Stated financial goals didn’t always match investment behaviours, or understanding of key financial concepts. There was a disconnect between preferences and investment choices.

While there was a strong interest in financial advice, many were hesitant to discuss their personal financial circumstances with others.

Other findings included: 

1 in 6 New Zealanders felt they are sinking financially 
More than half of New Zealanders strategically pay off high interest debt first 
2 in 3 were open to receiving financial guidance, despite 42% saying they feel uncomfortable discussing their finances 
Active investment in higher risk and return products like shares is less common, despite high returns being a priority for nearly half our respondents

Despite challenges, New Zealanders are pretty hopeful. We found 66% of New Zealanders, regardless of financial status, are actively looking for ways to improve their financial situation.
 
As the Conduct of Financial Institutions (CoFI) regime comes into effect, the FMA is entering a new phase of engagement with banks and other lenders to elevate conduct standards across the sector.

The addition of the Credit Contracts and Consumer Finance Act (CCCFA) to our mandate will further enhance the FMA’s role in protecting consumers.  

Download the research

Download the Good Cents research [PDF 676KB]

Download our supporting research note on vulnerable consumers [PDF 1.2MB]

Download the Good Cents data book [xlsx 255KB]

FMA Occasional Conversations Series – Good Cents

FMA releases Good Cents: Kiwis on savings and debt research

Making Good Cents of vulnerability

Insights from this 2024 Savings and Debt Reduction survey also reveal where financial vulnerability is showing up most across age and ethnic groups in Aotearoa. These findings help build a clearer picture of which communities are under the most pressure, and why.

While financial vulnerability can affect anyone, the findings showed particularly significant challenges for Māori and Pasifika communities, and for New Zealanders aged 18–24 and 45–54.

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Making Good Cents of: Age

As part of our Good Cents: Kiwis on Savings and Debt series, this snapshot uses our 2024 Savings and Debt Reduction survey data to show where financial vulnerability shows up most by age — and where support could make a difference.

Infographic from Good Cents: Kiwis on Savings and Debt shows 1 in 4 Kiwis aged 45–54 feel financially overwhelmed; 28% cite rising cost of living, with income issues (10%) and limited essentials coverage (18%) also contributing, based on 2024 survey data on savings and debt vulnerability.

1 in 4 Kiwis aged 45-54 feel they are sinking financially, with 80% saying they were at least the same or better off last year. 28% of this age group said their feelings around their financial buoyancy were influenced by the cost of living while 18% said they could only just cover essentials, and 10% cited income issues (too little, too irregular).

Infographic from Good Cents: Kiwis on Savings and Debt reveals Kiwis aged 25–54 are most concerned about debt; nearly 1 in 2 would use a $1000 windfall to prioritise debt repayment, based on 2024 financial wellbeing survey insights.

New Zealanders aged 25-54 are most likely to be concerned about their current debt levels, with almost half saying they would prioritise paying off debt given a windfall of $1000.

Infographic from Good Cents 2024 shows 1 in 2 Kiwis would save a $1000 windfall, with 58% of 18–24s and 54% of 65+ most likely to do so.

50% of New Zealanders aged 18-24, and 55+, say they would choose to save a $1000 windfall rather than repay debt - especially those aged 18-24, and those above retirement age.

Infographic from Good Cents 2024 shows 18–24-year-old Kiwis are least confident in financial decisions and most likely to struggle with essentials, yet 73% are open to advice.

Young New Zealanders are generally less confident in their ability to make the right money choices and are less comfortable discussing their finances with others. Luckily, they are relatively open to receiving advice despite being wary of discussing their finances.

Infographic from Good Cents: Kiwis on Savings and Debt shows 1 in 3 Kiwis aged 18–24 struggled to afford food, housing, healthcare, or transport in the past 3 months, based on 2024 survey data.

Kiwis aged 18-24 are twice as likely to have trouble paying for food, housing medicine, and transport. In the last three months, 1 in 3 have been unable to pay for food, 1 in 8 have been unable to pay for housing, 1 in 5 have been unable to pay for medical care, and 1 in 5 have been unable to pay for transportation. These are essential living costs.

Infographic from Good Cents: Kiwis on Savings and Debt shows younger Kiwis seek financial advice mainly from family (77%), banks (70%), and advisers (55%), but often struggle with financial literacy, revealing key adviser opportunities in 2024.

Younger Kiwis, aged 18-24, who seek advice prefer to speak to their loved ones (77%), their banks (70%), and financial advisers (55%). This age group is also significantly more likely to answer financial literacy questions about interest rates and equities incorrectly, indicating areas of opportunity for trusted advisers.

Making Good Cents of: Ethnicity

Infographic from Good Cents: Kiwis on Savings and Debt reveals 1 in 4 Māori and Pasifika feel financially overwhelmed, highlighting key ethnic disparities in 2024 survey data.

Māori and Pasifika are our most financially vulnerable communities. 1 in 4 Māori and Pasifika report they are sinking financially, compared to 18% of all New Zealanders. 78% of Māori say they were the same or better off last year.

Infographic from Good Cents: Kiwis on Savings and Debt shows most ethnic groups, including Māori and Pasifika, feel their financial outlook won’t worsen in 2024.

Optimistically, the majority of all ethnic groups believe that the worst of the storm is over, and that their personal financial situation will not deteriorate further over the next 12 months. Pasifika are the most optimistic, with almost half believing their financial situation will improve over the next 12 months.

Infographic from Good Cents: Kiwis on Savings and Debt shows lower home loan use but higher personal loan and Buy Now Pay Later use among Māori and Pasifika.

Māori home loan utilisation sits at only two-thirds that of the general population, and Pasifika at half. However, both Māori and Pasifika have adopted Buy Now, Pay Later (BNPL) schemes at almost twice the rate of the general population. This is worth keeping an eye on, as BNPL is increasingly available for everyday essential expenditure.

Infographic from Good Cents: Kiwis on Savings and Debt shows 1 in 3 Pasifika and 1 in 4 Māori couldn’t afford food or transport in the past 3 months, per 2024 data.

In the past three months 1 in 4 Māori and 1 in 3 Pasifika were unable to pay for food at least once, compared to 1 in 6 of all Kiwis. In the past three months, 1 in 6 Māori and 1 in 4 Pasifika have been unable to pay for transport, compared to 1 in 11 of all Kiwis.

Infographic from Good Cents: Kiwis on Savings and Debt shows 67% of Māori and 74% of Pasifika are open to financial advice, with Māori preferring banks (64%), whānau (64%), and advisers (54%), per 2024 survey data.

67% of Māori and 74% of Pasifika Kiwis said they would be open to receiving financial advices, however Māori in particular had an equal preference for speaking to their bank and their loved ones (64%). Māori are still less likely to approach their back for advice that other New Zealanders (71%) though, despite it being their top choice.