New Zealanders are showing greater confidence in their ability to handle finances, but the improvement has not translated into greater financial resilience, the Financial Services Council's latest index shows.
Nearly two-thirds of people describe themselves as confident in handling their money. Yet 25% could maintain their present lifestyle for only one month without income, and another 23% for one to three months. Just 15% said they could sustain their lifestyle for two years or more.
FSC chief executive Kirk Hope said the results showed a disconnect. "The confidence around their understanding of finances is not, at this point, translating into more financial resilience, which is going to be critical for people for the future," he said.
Economic pessimism remains elevated, with 23% reporting they are very unconfident about the economy, up from 21% last year. Inflation remained the biggest financial concern, though the intensity of worry has eased. Anxiety over house prices has softened, but interest rate concerns remain unchanged.
Just over 20% of households have investments valued below $50,000, and the FSC noted declining household savings, particularly among those with smaller balances. Those who feel very prepared for retirement have increased to 13%, up from 7% a year earlier.
Hope said at least half of New Zealanders feel worried about money, with 65% experiencing financial worry monthly. Among Gen Z, that figure climbs to 76%.