Around half a million Kiwis have no savings and are just living off what they earn from one pay day to the next, according to research from Consumer New Zealand.
Gemma Rasmussen, Consumer NZ head of communications and campaigns, said stagnant wage growth and the rising cost of living meant many were struggling to get ahead.
"Many people are struggling to put money away, with only one in four satisfied with their level of savings.
"Many are doing it tough - over the past three months, half of New Zealanders had saved 5 per cent or less of their income."