Thrift can elude even the wealthy

By MARK FRYER

Saving is like exercising or eating properly - most of us we know we should, but that doesn't mean most of us do.

So says a study of New Zealanders' attitudes to saving, prepared for financial services company AMP by research firm Colmar Brunton.

The researchers found that almost everyone agreed saving was important.

Their report says that the difference between savers and spendthrifts is not just a matter of income.

Certainly those on lower incomes find it hard to save, simply because it is hard to make the dollars stretch when there is financial pressure, but equally, those on household incomes of more than $100,000 sometimes found saving hard work.

There is clearly a group of the population who are savers and, equally clearly, there is a group of people who find they can't - and income is not the issue.

The report says one of the hallmarks of successful savers is that they put money aside before they see it, rather than trying to save whatever is left over.

Being born wealthy also helps, it says, theorising that people born into old money are more used to making financial decisions than people born into more modest circumstances who now find themselves earning a good income.

Among the other findings:

* Very few people in the study had any idea how much they needed to save for retirement. The few who did know found the numbers so big that they were paralysed into inaction.

* By far the most common reason people gave for not saving was that they were paying off a mortgage.

* Some younger people believe home ownership is a waste of time and that it is better to rent and put the money saved into investments.

* We're at home with debt. Many people were unconcerned about debts of $10,000 at the age of 18 or 19 (excluding student debt).

* We tend to gloss over our debts. For many people the word debt applies only to the big items, such as the mortgage. Hire purchase or credit cards are not regarded as a real debt.

* No one much likes the student loan scheme. The report says discussions were likely to become heated, and everyone knew of a tale of woe. Many believed the scheme was teaching people to run up big debts then go overseas to avoid the repayments.

* Many people feel guilty about not saving, and deal with their guilt by buying things.

* Having a super scheme as part of a salary package is one of the most successful ways of saving.