New research explores the savings behaviour of a rare creature
Research released today by Westpac reveals some of the habits of a species considered as rare as the kokako – Aucklanders who save money.
“New Zealand is known to have one of the lowest saving rates per household in the OECD. This new research shows that Aucklanders do save money, but with varying objectives and varying degrees of success,” said Westpac chief executive Ann Sherry.
The independently conducted research shows that nearly half of Auckland savers claim to save regularly, with just under half aiming to increase their contributions to their nest eggs in the future.
On average, the sample group were saving nearly 22% of their monthly income, but would ideally like to make this 32%.
Typically, more than a third of savers (35%) were salting away more money now than they were a year ago. What’s more, nearly 50% plan to increase their savings contributions over the next three months, compared with just 21% who plan to save less.
The research indicated savings ‘rites of passage’, with goals for savings heavily influenced by the stage in a person’s life - the 18 – 35 saving mostly for mortgages and deposits (26%), and the 55+ cohort for retirement (38%).
The average sum saved per month by the sample group was around $1000, with the younger age groups (18 – 35) being biggest savers of all, saving an average of $1499 per month, although other research suggests this same group may be saving in order to fund short-term consumption.
Ann Sherry said Westpac was very focused on encouraging the savings habit.
such as the Junior Account, aimed at little savers and their families, to foster the savings habit from an early age.
“We are also offering special rates to Westpac customers who set up term deposit accounts at our new Sylvia Park branch, which opens for business on Thursday 8 June .
“Westpac also supports the introduction of the Kiwisaver scheme as a means of boosting savings in New Zealand,” Ann Sherry said