Different Perceptions of Risk
Big quarter for product changes

One in four New Zealanders have "No cash savings"

ANZ paid to survey over 1,500 Australians and New Zealanders to explore their financial knowledge, attitudes and behaviours in late 2017. The survey found that one in four Kiwis have no cash savings.

The absence of cash savings is of particular concern. Cash savings should be the first kind of insurance you buy - having a little money in a savings account can avoid all sorts of trouble. I teach my kids the value of having a bit put by - whether it is the unexpected invite for a friend's special occasion, a lost wallet, or an unplanned expense, the money is always useful.

Antonia Watson, ANZ's managing director of retail and business banking: "While most New Zealanders feel they are doing OK with money, we have a significant number without savings to fall back on."

The lack of savings has an impact on the insurance planning for this group - with a couple of exceptions. Many of these people will also be people that have no insurance - in effect, doubling down on their risk. For those that are very young, with family who can step in with help, and just starting out on their employment journey, this is perhaps something to be expected. Occasionally, everyone can get a bit stretched: between jobs for a couple of months, or stretching to buy a new house can create a similar cash crunch. That's not so bad if you have non-cash assets that you could always sell - and perhaps a little flexible credit facility to help you smooth out the bumps in between. But those two segments added up, should surely no equal a quarter of the adult population.

Click here to see some of the key finds from the report in an infographic. Here is the press release from ANZ and here is a pdf of the report.

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