Kiwibank Index reveals growing consumer & business savings momentum amid cost-of-living pressures

Kiwibank's latest State of Savings Index reveals a mixed but promising picture of financial resilience across Aotearoa New Zealand. Savings momentum is building, especially among young Kiwi and larger businesses, but gaps remain for women, Māori and Pacific Peoples.

Now in its second year, the Index tracks how New Zealanders are balancing daily financial pressures with long-term goals. For the first time, it includes insights from Kiwi businesses, offering a broader view of national financial wellbeing.

Kiwibank Chief Executive Steve Jurkovich says: “We’re encouraged to see progress. Young people are showing real savings discipline, and financial confidence is on the rise. Larger businesses are also moving beyond survival mode, with growing optimism. After a tough stretch, that’s a promising sign.

“The data shows some Kiwi still face barriers, and that drives us to continue to deliver practical and inclusive support — from Co-Own, helping people team up to buy a home, to reshaping our credit card offering to deliver benefits that provide greater value to more customers.

“Beyond payments, we’re challenging the status quo. For example, we’re removing barriers to open banking by not charging accredited third parties to make standard API requests. It’s all part of building a banking system that works better for more Kiwi.”

Consumer research

The consumer research found:

• 94% of New Zealanders agree it’s important to be financially prepared for unexpected events, yet less than half (43%) are saving regularly — highlighting a significant gap between intention and action.
• Younger Kiwi are showing strong signs of financial resilience and those under 30 are more likely to have a defined savings target (76%), save more than last year (23% vs. 17% overall), and rank second only to over-60s (93%) when it comes to sticking to a budget (85%).
• Women (71%), Māori (79%), and Pacific Peoples (82%) are struggling to save, compared to the national average (63%) and men (55%).
• Overall, 51% of Kiwi now have a specific savings goal, a significant 16-point increase year-on-year, with Māori (56%) and Pacific Peoples (55%) more likely than average to set targets.
• 53% of New Zealanders are prioritising long-term goals like retirement and home ownership, compared to 41% focused on short-term needs.
• 48% of Kiwi have dipped into long-term savings (excluding KiwiSaver) in the past year to cover short-term expenses, with Māori (62%) and Pacific Peoples (61%) more likely to do so.
• 68% say they could cover a $500 emergency expense, but 63% still struggle to save, with the high cost of living (69%) remaining the top barrier.
• 47% say they are fully aware of what KiwiSaver fund they’re invested in and how it is performing.

“Kiwi clearly understand the importance of being financially prepared, with 94% saying it matters, but less than half are saving regularly, demonstrating a gap between intention and action. At the same time, we’re seeing encouraging signs of resilience, especially among younger New Zealanders. Those under 30 are setting savings goals, sticking to budgets, and saving more than last year. It’s a shift toward greater financial confidence.

“But not everyone is experiencing that momentum. Women, Māori, and Pacific Peoples are disproportionately struggling to save, and many are dipping into long-term savings to cover short-term costs. The cost of living remains the biggest barrier, with food prices up 4.6% in the past year and inflation lifting to 2.7% year-on-year from 2.5% over the June quarter.

“However, the good news is that for now, the risk of persistently high inflation appears low, especially with significant spare capacity still in the Kiwi economy and with signs that price increases are becoming less pronounced. And falling mortgage interest rates are offering a measure of relief to homeowners, helping to ease pressure and potentially stabilise overall household finances. We anticipate further rate relief as the RBNZ looks through volatile movement ahead of its next OCR decision.

“The rise in goal setting (up 16 points year-on-year) is a powerful signal that Kiwi want to take control of their financial futures. We have an ambitious target to support two million Kiwi with inclusive products, practical tools, and initiatives — from Goal Tracker, which helps individuals visualise and stay on track with savings goals; to our Notice Saver and Online Call accounts that promote better savings habits; to Thrive HQ which provides education and planning resources; and financial education in schools through our partnership with Banqer.”

Business research

The business research found:

• 52% of businesses report being financially stronger than a year ago, with 43% seeing higher customer spending. However, this momentum is largely driven by larger organisations:
  • 82% of businesses with 100+ employees report improved financial positions, compared to just 26% of sole operators.
  • 72% of large firms say customer spending is up, while 30% of sole operators report a decline.
• The divide extends to financial resilience:
  • 89% of large firms say they could handle a $10,000 expense, compared to just 25% of sole operators.
  • 17% of sole operators are not saving at all, versus 0% of large firms.
• Despite these challenges, small businesses remain forward focused:
  • 57% of all businesses are prioritising cash flow, 38% are building financial buffers, and 58% prefer to fund expansion through savings rather than debt.
• Businesses show strong appetite for practical support:
  • 76% want new savings/investment products.
  • 71% want online budgeting tools.
  • 68% want flexible lending and tailored advice.
• Open Banking is gaining traction, with 66% of businesses saying it could help achieve savings goals.

“There’s a confidence gap between larger organisations and smaller businesses. While large businesses (more than 100 people) report they are investing and growing, many sole operators are still just trying to stay afloat. The drive and ambition are there, but the data shows they’re often missing the tools to act on it. Nearly half have dipped into long-term savings to cover short-term costs, and 76% are actively seeking new savings and investment products, while 68% want more flexible lending and tailored advice.

“We’re responding with solutions like StartUp+, which helps entrepreneurs get off the ground, and Fast Capital, designed to give small businesses faster access to working capital. It’s about backing ambition with practical support, so more Kiwi businesses can move from surviving to thriving.”

Policy momentum: Budget 2025 & KiwiSaver changes

The State of Saving Index explored reactions to Budget 2025 and KiwiSaver policy changes, revealing strong support for initiatives aimed at long-term financial wellbeing.

• 60% of businesses agree Budget 2025 is pro-growth and supports capital investment, rising to 83% among large businesses.
• 37% of businesses say the Budget’s 20% asset tax deduction will encourage new investment, while 36% say it will help build financial buffers, and 36% say it will accelerate plans already underway.
• Among consumers, support for KiwiSaver initiatives is strong. The research tested a range of hypothetical initiatives, with 83% backing incentives for children to open accounts, 73% supporting a KiwiSaver-style emergency savings scheme, 68% support making KiwiSaver compulsory, and 67% support increasing employee/employer contributions.
• Overall, there was strong support for the Government’s recently announced changes to increase employer KiwiSaver contributions, with 58% of businesses supporting the move.

“60% of businesses see Budget 2025 as pro-growth, and 83% of large businesses say it supports capital investment. That kind of confidence matters. We’re also seeing strong signals that these policies are unlocking action with over a third of businesses saying the 20% asset tax deduction will encourage new investment, help build financial buffers or accelerate plans already underway.

“We know the job ahead — helping households and businesses save, invest, and grow with confidence. The need for practical, personalised support is real. Whether it’s budgeting help, smart savings options, or fast access to funding, we’re committed to doing our bit to ensure more Kiwi are better off.”