Some 26% of New Zealanders were struggling financially, up from 20% when inflation peaked, while a quarter said they are struggling financially and 41% expect their disposable income to shrink over the next year.
Grim reading indeed. But mandatory reading for those in Parliament.
The numbers show we are more pessimistic about our finances compared to nine months ago, but more optimistic compared to two years ago.
We simply don’t feel like we’re getting ahead. This is what Governments have always sold to constituents, the idea that life will get better under them.
But New Zealand has for a while now carried the tag of being a beautiful but expensive corner of the world to live in. Our wages aren’t keeping up with comparative countries and owning a home is quickly becoming out of reach for many, risking a modern landed gentry society.
Earlier this year, the Ipsos Housing Monitor said young New Zealanders are feeling increasingly unable to afford a home of their own.
Opportunities are also seemingly slim for young Kiwis, with many skipping across the Tasman or further abroad to find work.
The number of people leaving the country long-term hit another new record in the year to January. Experts hope, however, the brain drain has peaked.
Even though we are official out of a recession, we simply don’t feel it. Perception versus reality.
The survey recorded 70% of respondents believing the country was “currently” in a recession.
If you feel like things are tough for you, then they are. This is particularly true for low-income Kiwis, every time they go to the supermarket or put petrol in their car they’re reminded of it.
The survey showed a 52% increase in just under three years of those on low incomes describing themselves as struggling.
Last week, the Official Cash Rate continued to drop, falling 25 basis points to 3.5%.
But with power and insurance costs continuing to increase for households what money we might save with lower mortgage repayments is being gobbled up elsewhere.
When asked about factors contributing to the cost of living, 80% of people cited the state of the global economy.
We are aware New Zealand is a small part of a global economy. But we expect our Government to do everything it can for us to prosper, regardless of the challenges.
As we head towards the release of Budget 2025 and with an election next year, this survey should remind politicians the cost of living remains at the top of voters’ minds.
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