When it comes to saving, New Zealand is the poor relation in the club of rich nations.
Latest projections from the Organisation for Economic Cooperation and Development (OECD) put New Zealand 19th and last of its member nations for "household savings rates."
More worryingly, the figures show that New Zealanders and Americans are expected this year to spend more than their after-tax income.
For every $100 of cash, Kiwis are tipped to spend around $101.
A decade ago, New Zealanders saved the equivalent of nearly 6 per cent of disposable income, which was still considered low. But in the past 10 years that has fallen and could go below zero if the OECD projections are correct.
The thriftiest country in the group of developed nations is France (16 per cent).
In News Review today, on A17, economics editor Brian Fallow puts the figures in context, explains how New Zealanders became such bad savers and asks whether it matters.
Our poor productivity record, the availability of consumer credit, memories of high inflation and our preference for investing in housing all contribute to the problem.
"On the face of it, with an ageing population, it is a worrying trend," he writes.
However, "saving is a slippery thing to measure."
On the Dialogue page, A19, Jeff Todd, former chairman of a Government taskforce on superannuation, looks at changes needed to ensure that New Zealanders can have decent incomes in their old age.
"Complex issues can be resolved relatively simply but we need true leadership from politicians if we are to have a non-partisan policy in place for the next 100 years."
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