Recession memories prompt more to save

Last year's economic uncertainty has led to more people planning to stick to a savings plan.

A MasterCard survey shows that almost nine out of ten people intend to save at least the same amount as they did six months ago.

Fifty-two per cent of respondents are saving for a specific reason, such as investments or to purchase electronic goods and 48 per cent are saving for a rainy day.

Younger consumers between the ages of 18 and 29-years-old are leading the savings trend. Respondents in the 30-44 age bracket are the most concerned about saving for unforeseen emergencies.

Younger consumers are also leading the way in saving to spend on future consumption. Top of the list of items they are saving for include international travel, buying or renovating a house and electronics.

MasterCard says despite dramatically improved consumer confidence levels, the economic uncertainty of last year seems to have made people more aware of the need to have cash in reserve.

NZ SURVEY HIGHLIGHTS:

* 45 per cent of Kiwis are planning to save more in the next six months, 43 per cent the same and only 13 per cent plan to save less as compared to six months ago.

* Of those respondents who are planning to save more or the same amount, 48 per cent of them are doing so in preparation for unforeseen emergency expenditures. However 52 per cent of New Zealand consumers do not see this as the main reason for saving more in the next six months. Among the different age groups, those in the 30-44 age bracket (53 per cent) are most concerned about saving for a rainy day.

* Younger consumers between the ages of 18 to 29 years old (59 per cent) are planning to save more in the next six months compared to their older counterparts - 30 to 44 years (44 per cent), 45 to 54 years (38 per cent) and 55 years and above (32 per cent).

* New Zealander consumers are also saving for international personal air travel (43 per cent), buying or upgrading property (37 per cent) and retirement (34 per cent).

* The majority of New Zealander consumers (42 per cent) plan to save between 1-10 per cent of their income in the next six months.

* A similar proportion of female consumers (45 per cent) and male consumers (44 per cent) surveyed in New Zealand are planning to save more in the next six months.

- NEWSTALK ZB