The survey showed that Kiwi Gen Z are good savers but worried about the cost of living. Photo: RNZ / Hingyi Khong
Gen Z New Zealanders are putting their dollars to work - a new survey has found they are saving and keeping on top of their KiwiSaver contributions.
The research from the Financial Services Council found 96 percent of people aged between 18 and 25 are enrolled in KiwiSaver, with 80 percent checking their balance regularly.
The report found that 40 percent of 18 - 25 year olds paid the default KiwiSaver contribution of 3 percent and 50 percent had balances of $1000 - $10,000, but 3 percent reported having a balance of more than $50,000 in their KiwiSaver account.
Financial Services Council NZ chief executive Kirk Hope told Morning Report the survey suggested that Gen Z were very good savers with 62 percent of survey respondents saying they would save their money if they had extra funds or a pay rise.
But they were uncertain about the future, he said.
"Possibly some of the more concerning stuff was that 93 percent are concerned by the cost of living and 58 percent would have to rely on friends or family if they were unemployed."
This generation may have decided that they need to keep on top of their KiwiSaver contributions as a way to help fund a deposit for a house, he said.
The survey also found Gen Z lacked confidence around financial decision making, mainly in the area of insurance, he said.
"That lack of exposure to the type of protections insurance can bring with only 33 percent being confident and 37 percent having access to health insurance."
The council had been lobbying government to make some changes to make insurance more affordable for that cohort of people, he said.
"New Zealand's one of the few countries in the world where there aren't tax breaks for insurance products for example, and similarly we tax employers that are trying to provide health or life insurance as a benefit to their employees."
The council was talking to the government because it was an area that could make a real difference to young working New Zealanders, he said.
Those surveyed were broadly supportive of any increases to KiwiSaver contributions, he said.
"They really are a saving generation, so I think that bodes well certainly for the future."
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