Financial resilience remains under pressure for many New Zealand households, with new data revealing ongoing cost-of-living struggles and subdued expectations for economic improvement.
These findings are relevant for insurers and financial service providers, particularly in personal lines, income protection, and life insurance, as they navigate shifts in consumer behaviour and financial stress.
Research from Ipsos New Zealand has indicated that one in four adults continue to find it difficult to make ends meet, a figure largely unchanged over the past two years but up six percentage points since tracking began in 2022.
The impact is particularly evident among lower-income groups, who have seen a 13-point rise in financial difficulty since that time.
Concerns about employment are also prominent. Nearly half of those surveyed expressed anxiety over job security, with women significantly more concerned than men. A majority expect unemployment to rise in the coming year, and among those worried about job loss, over 80% reported cutting back on their spending – suggesting a strong link between employment confidence and consumer habits.
At the same time, the outlook on inflation remains negative for most respondents. Even with a growing number expecting interest rates to decline in the next 12 months, more than half believe that inflation will continue to climb.
Around 41% anticipate their disposable income will fall, and only 22% foresee any improvement in their living standards. Price increases for essentials such as food, electricity, and household goods are widely anticipated.
Commenting on the findings, Ipsos New Zealand’s country manager, Carin Hercock, noted that inflation continues to be viewed as the country’s top economic issue.
“New Zealanders are not making the connection between reductions in the official cash rate to an improvement in living costs. Instead, the majority believe that major household costs like groceries, power, and insurance will continue to increase in the next six months,” she said.
The report also highlighted a gendered dimension to financial insecurity. Ipsos executive director of public affairs Amanda Dudding said women are disproportionately worried about job security, a trend that may reflect broader employment patterns that emerged during the COVID-19 pandemic.
In a parallel report, ASB Bank examined financial habits among younger New Zealanders aged 18 to 24, revealing that while this demographic faces significant financial pressures, many are taking proactive steps to manage their money more effectively.
ASB’s data, drawn from over 650,000 customer profiles, found that young adults are more likely than average to experience payment difficulties, and over half lack a basic savings buffer.
ASB’s analysis showed that 60% of young adults have trouble meeting monthly expenses, and 44% rely on each pay check to get by. Despite these challenges, nearly half of respondents in this age group reported efforts to improve their financial well-being, such as initiating regular savings or seeking guidance on KiwiSaver contributions.
The bank’s general manager for business transformation and customer engagement, Rosalyn Clarke, said these young customers are navigating a particularly difficult economic environment, having entered the workforce during a period of pandemic disruption, high inflation, and recession.
“It’s tough – but we know young people want to get ahead, and with a lifetime in front of them, small changes now can make a big financial difference,” she said.
In the broader geopolitical context, a new report from Marsh highlighted growing concerns over supply chain volatility tied to global trade tensions.
The 2025 report warned of increased disruption risks in countries acting as trade intermediaries, such as Vietnam, Mexico, and South Korea, where regulatory changes could impact the flow of goods involving sanctioned components.
The report also called attention to the complex risk landscape surrounding climate finance, including carbon credit markets and debt-for-nature swaps. Marsh cautions that such instruments carry inherent political risks, from policy reversals to project failures, which may hinder insurers and investors participating in the transition to a low-carbon economy.
