Gen Z confidence in financial decisions falls as cost of living bites

A new report says Gen Z in New Zealand are highly engaged in KiwiSaver. Photo / Getty Images

Gen Z in New Zealand are deeply uncertain about making financial decisions and anxious about the state of the world, according to a new study.

The Financial Services Council’s (FSC) Money & You report found 93% of Gen Z are concerned by the cost of living.

“This generation’s confidence in financial decision-making has declined from 42% in 2023 to 35%, with only 13% saying they are extremely confident in financial decision-making,” said FSC chief executive Kirk Hope.

“Learning about financial resilience and building confidence in financial decision-making can be addressed by encouraging young adults to reach out to professional financial advice and having financial literacy taught to them whilst at school.”

But the report also found Gen Z are savers and are highly engaged with KiwiSaver.

According to the report, 62% of Gen Z said they would save their money if they had extra funds or a pay rise.

Meanwhile, 96% of Gen Z are enrolled in KiwiSaver and 80% have checked their KiwiSaver fund in the past year.

“This upcoming generation is deeply invested in KiwiSaver. They have time on their side and the opportunity to contribute early,” Hope said.

“Coupled with the Government announcement in Budget 2025 to lift the contribution rate to 4% in 2028, if they go beyond the default contribution the long-term benefits could be substantial.”

Kirk said the Government has a real opportunity to build on strong public engagement with KiwiSaver by launching a national strategy.

“A long-term KiwiSaver strategy would not only secure better retirement outcomes for New Zealanders, it would unlock billions in capital that could be invested back into New Zealand through infrastructure, housing and innovation.”

The report found 40% of those surveyed contribute the default KiwiSaver contribution of 3%, while 50% have balances between $1000-$10,000.

Almost 70% of Gen Z said they would consider professional financial advice, in contrast to the 18% who are currently receiving advice or have received advice in the past.