New research reveals more than half of New Zealanders are struggling with money

New research shows that 55% of New Zealanders are struggling with their financial situation – up 17% compared to February 2021 and the highest level since surveying began.


Out of those surveyed, 51% say they are ‘starting to sink, or treading water’ and a further 3.5% are ‘sinking badly’.


Since February 2021, Te Ara Ahunga Ora Retirement Commission has commissioned TRA to survey 4000 people annually, gathering insights on how people are feeling about money and how they are coping.


The latest findings have revealed that women, Māori and Pacific Peoples are being hit the hardest, with 61% of women saying they are in a difficult position financially (compared to 48% of men) and 60% of Māori and 58% of Pasifika are also struggling.


Sorted Personal Finance Lead Tom Hartmann says it’s concerning so many Kiwi are feeling the pressures of cost increases.


“We have now tipped into more than half the population feeling squeezed financially. This significantly reduces people’s ability to grow their money for tomorrow, which has long-term consequences for their future financial wellbeing.”


Those people in the survey who are struggling with money have reported experiencing more financial stress as a result.


Te Ara Ahunga Ora Research Lead Dr Jo Gamble says financial stress impacts relationships with more women, Māori and Pasifika hiding or concealing their financial situation from their family or friends than the average New Zealander.


“Sixty percent of the average population have experienced financial stress within the last year, however this was significantly higher for 18–35-year-olds at 76%, Māori at 76% and 78% of Pasifika,” she says.


“Financial stress can ripple across a person’s whole life impacting not only their financial wellbeing but how they relate to the friends and family, and the choices they make socially.


“It’s important for New Zealanders to reach out for help if they are struggling, as with support and small changes it can be easier to manage money, which benefits your mental wellbeing.”


This research also looked at New Zealander’s financial behaviour in four key areas; budgeting, saving, tackling debt, and KiwiSaver and retirement, which link to Sorted’s key money management pillars.


The research showed some positive movements across all groups with people focusing on their money management skills – including keeping a close watch on their money and considering purchases before they buy them.


“Developing these skills means New Zealanders may be in a better position to improve their financial position once cost of living pressures ease,” says Hartmann.


“When money is tight it can be challenging to keep budgets on track, but developing money management skills can help people keep going during tough times, and then help them get ahead when costs decrease.


“As part of Sorted Money Month, we’ve been encouraging people to hit pause, and take a moment to look at their money situation, and seek out help where they need it. This might be using the tools on Sorted, joining a money event or seeking out help from financial mentors or advisers.


“Even when times are tough, small changes can make an outsized difference and help you stay on track.”

Plan for your Future

13 July 2026
Plan for the Future A common misconception is that retirement villages and rest homes are the same thing – they are Not. A retirement village is for independent living and usually for people in their 70’s who are active and want convenience, community and security. A rest home is about care – it offers day-to-day health assistance when one requires ongoing support or 24hour care. Not all villages have a rest home facility on site and not all rest homes are able to offer a rest home bed or a respite bed when you need it. So, what happens when you become a little frail, can manage those day-to-day tasks but do find it a struggle and maybe no longer have the convenience of the car to get around but don’t want to lose your independence or rely too heavily on family, neighbours & friends. The best time to think about how you will manage, how aged care may affect you, is well before it is needed. Having an enduring power of attorney for care and welfare in place is a good start. Be aware that some family members can become very difficult when aged care is discussed and they don’t want to lose ‘their inheritance’ on rest home fees. They could argue “stay in your own home, we’ll help you” and “well be there for you”. The bottom line is to educate yourself in advance. The less you need to put into place when and if the time comes the more at rest you will be to enjoy your retirement years. Start the conversation before you have to. It’s a known fact that families who have discussed these difficult issues in the early stages are best prepared to navigate the way forward. Tell your family what you want – perhaps stay at home with outside support but with family in the overseeing role, or move when the time seems appropriate. Most family members come with good intentions – many adult children gradually become carers without consciously deciding to and because the assistance builds up slowly it is not always recognised until it becomes mixed with heaps of other emotions – time off work, fatigue, financial pressure and even resentment.  The goal isn’t to remain in your own home at all costs, its about being safe, connected and independent for as long as possible. If everyone is onboard with your feelings, your wants and your needs any move can be a genuine positive experience for everyone. Take time out to plan those what ifs. Discuss them with your family. Ensure they understand your point of view. Write down the facts if need be – then put it away in the bottom drawer and get on with life.

An opportunity to further advocate for residents by ensuring the RVRC Council has presence with politicians.

8 July 2026
Left: Photo of Chair Carol Shepherd and Tauranga MP Sam Uffindel. Right: Chair Carol Shepherd and Council member Denise Whitehead with Minister Potaka.