Personal savings are helping Kiwis remain financially resilient

Latest data from ANZ shows New Zealanders remain cautious about their financial situation, but resilience is holding up.

The ANZ Roy Morgan Financial Wellbeing Indicator shows that in the three months to December 31, the overall wellbeing score dropped to 59.1 out of 100, compared to 59.7 in the September 2022 quarter.

However, the resilience component of the score, which focusses on savings and measures people’s ability to cope with a significant unexpected expense or the loss of their income, saw a slight lift.

The financial wellbeing score is made up of three components: ‘feeling comfortable,’ ‘meeting commitments’ and ‘resilience.’

·   The ‘feeling comfortable’ measure fell to 49.3, down from 50.9 three months earlier. That is down from 52.1 in June 2021.

·   The ‘meeting commitments’ measure dipped slightly to just over 72.

·   The ‘resilience’ measure rose to just over 55.5

"Active saving and not having to borrow for everyday expenses can make a big difference to people’s sense of financial wellbeing."

Ben Kelleher - ANZ NZ Managing Director for Personal Banking

A key element in the resilience component is savings, and in the last quarter of 2022 the research shows the mean savings amount lifted a little, from $5,150 at the end of September to $5,330 at the end of December.

ANZ New Zealand customer data also shows over 50 per cent⁽¹⁾ of customers have a savings buffer in place and around a quarter of them are actively saving.⁽²⁾

Ben Kelleher, ANZ’s Managing Director for Personal Banking, said the current economic environment meant people were nervous about their financial situation but it was encouraging to see a lift in the resilience score.

“We know it is tough out there for people, this is coming through in the conversations our team are having with customers.

“In recent months we’ve been contacting people who show signs of needing reassurance and support to help them understand what options are available to them if they are coming under financial stress.

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The ANZ Roy Morgan Financial Wellbeing Indicator research shows that having a savings buffer is associated with higher levels of financial wellbeing.⁽³⁾

“However, we know the current economic environment means saving is a challenge for many people right now.”

Mr Kelleher said for those who can continue to save, every little bit does help.

“Active saving and not having to borrow for everyday expenses can make a big difference to people’s sense of financial wellbeing.”

To help encourage people to save, ANZ customers who make at least three deposits into their savings account before 31 March 2023 will go into the draw to win a $1000 boost to their savings.⁽⁴⁾

The bank is also promoting small and achievable changes people can make to increase their savings and improve financial wellbeing.

·       Aim to save a specific portion of your pay every time you are paid.

·       Little and often – rather than the amount you are putting aside, it’s the regular saving that helps create good habits.

·       Talk about it – ANZ’s research shows people who talk about their finances tend to have higher financial wellbeing.

·       Do it together – team up with friends or family to create a support network to help each other save.

ANZ has a range of online resources, including a Financial Wellbeing Calculator, a Savings Personality quiz, budgeting and savings tips and advice on starting money conversations.

(1) Approximately 54.50% of ANZ customers have a savings buffer in place, meaning these customers have at least $1000 in their bank account. Of those customers who have a savings buffer in place, approximately 77% are under the age of 65.

(2) As at December 2022, approximately 21.02% of ANZ customers are active savers. Of those customers who are active savers, approximately 77% are under the age of 65.

(3) Financial wellbeing is defined as a person’s ability to comfortably meet their financial commitments now and into the future.

(4) Terms and conditions apply.

This material is for information purposes only. Please talk to us if you need financial advice about your situation and goals or about our products and services. See our financial advice provider disclosure at anz.co.nz/fapdisclosure