While many New Zealanders feel confident in their financial decisions, there are significant gaps between their financial goals and actual holdings of investment products, according to new research published by the Financial Markets Authority, a government agency responsible for financial regulation.
Titled “Good Cents: Kiwis on Savings and Debt”, the research looks into New Zealanders’ attitudes and behaviours towards savings, debt reduction and financial guidance.
It found that New Zealand consumers feel well-informed and well-supported when it comes to managing their finances and they are happy with their understanding and confidence around savings and debt.
Areas of improvement
The survey also found some areas for improvement, such as aligning investment choices with financial goals, enhancing understanding of debt management and increasing comfort with seeking financial information.
For instance, stated financial goals did not always match investment behaviours, or understanding of essential financial concepts. There was also 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 of the survey include:
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1 in 6 New Zealanders feel they are sinking financially
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More than half of New Zealanders strategically pay off high-interest debt first
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2 in 3 are open to receiving financial guidance, despite 42% saying they feel uncomfortable discussing their finances
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Active investment in higher risk and return products like shares is less common, despite high returns being a priority for nearly half of respondents
Despite the challenges faced, the survey also found New Zealanders are pretty hopeful. Two-thirds (66%) of Kiwis, regardless of financial status, are actively looking for ways to improve their financial situation.