FSC index report

Checking in on New Zealand's Financial Resilience

Jun 9, 2021 9:50:29 AM / by HealthCarePlus

Being an active member of the Financial Services Council (FSC) allows us to access resources and research that we could not possibly afford to develop.  These resources are key to helping us support our Members financial wellbeing and more importantly their financial resilience.

The FSC is the voice of New Zealand's Financial Services industry and represents all of New Zealand’s, major life insurers, workplace savings organisations and now Health Insurers.

They have recently invested in a landmark research project to build a better picture and
understanding of exactly how New Zealanders feel  about money and other everyday financial concerns.  It's called the The Financial Resilience Index and it tracks New Zealanders’ views on five key financial resilience indicators: financial confidence, financial literacy, financial preparedness, job security and wellbeing.

Improving our Member's Financial Resilience is one of our key goals and we hope by continuing to share this research we will help drive a more conversation and build awareness of how we can collectively work to build our financial resilience and wellbeing.

financial services index (2)

You can read a summary below and download the Financial Resilience Index here 

This months latest survey findings shows that 12 months on, Covid-19 continues to affect our wellbeing – and that of younger New Zealanders in particular.

“The impacts of Covid continue to be felt as New Zealanders adapt to a new reality. We survived Covid but it has come at a cost, especially for younger Kiwis,”

FSC CEO Richard Klipin.

The research reveals that 77% of New Zealanders under 37 years of age worry about
money daily, weekly or monthly. The reasons for this will be diverse, but are likely to include concern over the ability to purchase a first home, the stress of taking on a significant mortgage debt in order to get on the property ladder, and general worry about providing for a family, job security and saving for the future.

While money worries are most apparent in younger generations, Gen X and Baby Boomers haven’t been spared, and are worrying about money more now than they did a year ago.

There is a silver lining, though. One area where we’re demonstrating resilience is job
security, which is actually higher now than it was last year. Comparing data from April 2021 with April last year, we can see that job security is slowly rising, reflecting recent unemployment figures and economic growth forecasts.

Feelings of preparedness for retirement have remained stable, however still only 44% of
New Zealanders feel they are financially prepared for retirement, so this indicator remains a concern. In addition, financial confidence has decreased, overall financial literacy has dropped and the impact of financial issues on our physical and mental health, and on our relationships, is on the rise.

Therefore, while the findings suggest we’re making strides in some areas, they also
highlight that there is more to be done to support the public in building knowledge and
gaining confidence when it comes to their finances.

What remains clear from the latest survey results is the connection between money and
our wellbeing, with over 55% of New Zealanders saying that financial issues have adversely affected their overall wellbeing.

The Financial Resilience Index can be found here

For the team here at HealthCarePlus, this is an area of key concern to us and we will continue to develop more resources and services to increase financial literacy, and ultimately help grow both the financial confidence and wellbeing of our Members

 

Tags: Financial Resilience