Covid 19 Omicron outbreak: Are Kiwis financially prepared to face latest variant?

The median savings for ASB customers is $3032. Photo / File

Kiwis are better prepared financially to face the Omicron variant than they were at the start of the Covid-19 pandemic but still don't have much in the way of savings if they were forced to self-isolate for weeks and couldn't work.

Latest research from ASB Bank which tracks the financial fortunes of 600,000 customers shows the median savings across the country were $3032.

People living in Nelson and Tasman areas had the highest savings balances with an average of 31 per cent more than the median while those in the Gisborne and Southland regions were over 40 per cent more likely than average to be in overdraft.

Vittoria Shortt, ASB chief executive, said those in the Tasman and Nelson area tended to be older so it was no surprise they had more in savings while Gisborne had higher unemployment than other parts of the country.

But she said $3032 was not much in the way of savings.

"We have seen an improvement in savings because of the forced lockdowns initially and a lot of government support but now is not the time to let that go, now is the time to continue."

Shortt said individuals needed to plan for how they would cope if they couldn't work due to sickness or self-isolation requirements and financial planning was part of that.

"We are better prepared than we were at the beginning so that is positive but again this is just teaching us we need to continue thinking through; what if I can't work for three weeks, what if I have to support others?

Under the red traffic light setting schools are allowed to open but she said parents should consider what might happen if a lot of the teachers became unwell.

"We still have to be prepared for what might come."

For those workers who have to self-isolate and can't work from home the short term absent payment is $359 per worker.

Shortt said the other issue for business owners was that even though businesses were allowed to open their foot traffic may be a lot less.

"As we have seen from Australia because there are so many people self-isolating or less active because they want to try and avoid catching the virus then there are less people out and about and less people participating in the business economy.

"Businesses need to be prepared for a time when they might have a different dynamic again. It's not all on or all off in terms of lockdown or not it might be something in between."

That is likely to present ongoing challenges for the likes of hospitality and close contact businesses.

ASB chief executive Vittoria Shortt. Photo / Supplied

"With businesses cash is king. It is going back to the cashflow, getting prepared, we are there to support our business customers and the sooner we know where they are at and what help they might need the better, rather than finding yourself in cashflow difficulty and then trying to do something.

"It's about being prepared, thinking about it or what steps you might take or what help you might you want to put in place now."

Shortt said she had heard anecdotally businesses who were extremely worried because they have managed to stay afloat for now but their customers were not coming back in.

"The classic example is cafes in working districts - whether that is central Wellington or Auckland CBD, the foot traffic is just not there because people aren't at work. Anecdotally I definitely hear that some businesses are extremely concerned."

Shortt urged people to continue putting money into rainy day savings or if they couldn't save to ask for support.

"It is really just another reminder to put rainy day money aside or if you are a retiree a lot of discussion at the moment is the markets and trying to see through short-term volatility.

"Or if savings is not an option then reaching out for help. Because over the last couple of years a lot of businesses and community partners have really stepped up more. There is more support is available."

What ASB is doing to prepare

Shortt said ASB had been looking at how businesses around the world were coping with Omicron and had a plan in place for what it would do if up to a third of its workers were self-isolating or sick.

"One of the big learnings is that if you can't open your branches because you have a lot of people sick - because branches need a certain number of people for health and safety requirements - what we would do is front foot that by closing a lot of branches and moving back to a similar situation as the first lockdown so we have more of our people working from home on phones or digitally.

"That is in essence one of the key actions to take. Right now all of our branches are open under red but we are ready to move and adjust that quickly and we would move very quickly.

"One of the good things is we have built up so much capability over the last two years it is all about having a plan in place and then being able to push the button and execute."

The bank also has an order of rapid antigen tests or RATs on the way with more being ordered. It plans to use these to test customer-facing staff.

"It is definitely something that is additive and helpful. It is about not being reliant on one single element of a plan - it is about having all of them together."

Shortt said it was not easy to get the tests initially but it seemed like supply was starting to come through now.

"There have been challenges with them but as I understand it we have been able to secure some now and there are more being secured."