A Kiwibank survey found 28% of New Zealanders could not cover an unexpected $500 expense without borrowing, and 61% struggle to save — with groceries and housing costs the biggest barriers.
A new survey from Kiwibank has painted a picture of persistent financial pressure among New Zealand households, with more than a quarter unable to cover an unexpected $500 bill and most people pointing to the cost of living as the main obstacle to building savings.
Kiwibank's State of Savings Index, conducted by Talbot Mills Research among 1,534 respondents in mid-June, found 61% of those surveyed struggled to save. When asked to identify up to three cost-of-living bills creating the most pressure on household budgets, groceries topped the list at 68%, followed by rent or mortgage payments at 46%, power and gas at 42%, and petrol or diesel at 31%.
Who is most exposed
The survey asked respondents whether they could cover an unexpected $500 expense without borrowing, selling something, or putting it on a credit card. Only 47% of renters were able to do so, compared with 72% of people with mortgages and 86% of outright home owners.
The finding reflects a broader pattern in New Zealand household finances. Home ownership has long been associated with greater financial stability, in part because renters face ongoing exposure to rental price movements while lacking the asset base that property owners accumulate through mortgage repayments and capital gains.
Forty percent of all respondents had taken on debt to cover increased cost-of-living expenses, and of those, almost half had used buy now, pay later schemes — a form of short-term credit that has grown significantly in New Zealand over recent years.
Women more likely to struggle
The survey found women were substantially more likely to report saving challenges, with 66% struggling to save compared with 54% of men. Among those citing cost of living as a barrier, 78% of women identified it compared with 68% of men.
Kiwibank chief executive Steve Jurkovich said the gender gap reflected structural factors including who occupies primary caregiving roles, reduced working hours, and lower average KiwiSaver balances over time.
An ongoing grind
Jurkovich said the consistency of the figures over three years of the survey was striking. "The people who save regularly do so," he said. "It was going to be survive till 2025 and then whatever it was for 2026. Now it's 2027. It sort of feels like a bit of an ongoing grind, doesn't it?"
The findings come against a backdrop of renewed inflation pressure. New Zealand's annual inflation rate rose to 4.1% in the June 2026 quarter, the highest in two years, with fuel prices the largest single driver. excluding food, fuel and household energy, the annual rate was 2.5%, but the headline figure adds to pressure on households already finding groceries and utilities hard to afford.
Using AI to choose banks
One notable finding was the rapid growth in people using AI tools to help select banking products. Jurkovich said financial institutions were having to reshape their web content to ensure large language models could clearly surface relevant information.
"That there's the potential to be pretty positive," he said. "I think you're going to see a world where more and more people will have support to pull together their argument."
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.