“Saving more money might feel unrealistic for many people right now ... but taking some time to review your overall spending and making small savings commitments can have a big impact over time.”
Hearn said while some people will be channelling any extra funds into paying off their mortgage rather than saving, the data showed 81% of Westpac home loan customers do also have a savings account, with 36% of them having set up a monthly automatic payment.
“Good savings habits can make a big difference in the long run. Simply establishing the behaviour is a great start,” she said.
Tom Hartmann, personal finance lead at Sorted, said the statistics were concerning.
“When we start people out in lifting their financial capability … it always starts with emergency savings.
“We’re all running risks with life. Lots of things can happen and if we’re not prepared for those then we end up running to crisis borrowing.”
Hartmann said it wasn’t hard to see why people didn’t have $500 in savings when there were lots of different places to park your money these days.
“But really to not have [your money] at the ready is always a concern,” he said.
Hartmann said the priority of emergency savings is not going away.
“This is one of the essential things that people need to stay focused on.”
Southern regions top list of best savers
Kiwis in Canterbury and Otago are the best savers in the country, according to the data.
The median savings balance of Westpac customers in both regions was $4200, while 32% of people in both regions had a savings balance of more than $15,000.
Canterbury and Otago also led the way in saving, with 28% of Westpac everyday banking customers making monthly payments into their savings accounts.
At the other end of the table, those in Auckland had the lowest median savings balances ($1200).
Aucklanders were the most likely to have a savings balance of less than $500 – which was the case for 43% of people.
Hearn said it can be tough to get ahead in the country’s biggest city, where only 19% have an automatic savings payment set up.
“We know costs are typically higher in Auckland than in other regions and that’s reflected in this savings data.”
Northland had the second-lowest median savings balances among Westpac customers ($1400), while 42% of people in the region had a savings balance of less than $500.
Wellingtonians had the North Island’s highest median savings balance at $3600, while 31% had more than $15,000 in savings.
Wellington and Southland tied for first place in KiwiSaver, with 42% of Westpac customers having Westpac KiwiSaver balances of more than $40,000.
Overall, 38% of the country had a Westpac KiwiSaver balance of more than $40,000.
“It’s important to make sure you’re in the right KiwiSaver fund for your stage of life,” Hearn said.
“There are numerous simple and free online resources available to help you to work that out.”
