More than a third of Kiwis unable to last financially beyond a month if they lost their jobs, survey finds

Source: 1News

Around 37 per cent of Kiwis would be unable to last financially beyond a month if they lost their jobs, a new survey finds.

New research commissioned by the Financial Services Council (a non-profit member organisation) paints a stark picture thatmany Kiwis who will lose jobs during the Covid-19 crisis may face.

The FSC's Money and You surveyed 2000 Kiwis to get a "comprehensive understanding of how New Zealanders feel about money, their level of knowledge about it, and how it impacts key areas of their lives".

Richard Klipin, Chief Executive Officer of the Council, says the results were a mixed bag.

“Overall, the research found a strong link between money and wellbeing with money worries causing stress for most New Zealanders. Given that just 21 per cent of respondents described their financial well-being as better than moderate this suggests that money has a major impact on our health and well-being.

“Money and You also presents a challenging picture when it comes to Kiwis’ financial stability. Seventy per cent of us would not be able to meet basic financial commitments such as mortgage/rent and bills beyond a short period of time if we lost our jobs.

"Over a third of us would not be able to last beyond a month."

Mr Klipin says the survey found young New Zealanders are the least prepared for a loss of income.

“A bright spot though in Money and You is New Zealanders' embrace of KiwiSaver with 75 per cent of us now investing via the scheme.

“This level of exposure is set to be a gamechanger in coming years as KiwiSaver acts as a gateway to helping New Zealanders become more financially engaged, aware and resilient.

“This research was conducted in the shadow of the Covid-19 pandemic and before its full impact was known.

"Nonetheless, as we slowly return to a level of normality we hope that this research will help challenge all New Zealanders to think about how they can understand money better and build their ongoing financial resilience.”

Money and You involved a representative online survey of 2000 New Zealanders carried out by CoreData and collected between 12 March and 20 March 2020.

Click here to view the full report.