More people saving than last year – AXA

Tuesday 5 May 2009
For Immediate Release

More people saving than last year – AXA

The latest consumer confidence figures show New Zealanders are becoming more financially savvy, focusing on savings not spending, says AXA New Zealand.

“While the recession is upon us, New Zealanders remain relatively upbeat about their finances,” says Mark Ennis, General Manager of Marketing at AXA New Zealand.

The latest Nielsen consumer confidence survey found that just over half of New Zealanders (52%) surveyed think their finances will remain good, if not ‘excellent’, over the next 12 months.

Just under half (47%) of all New Zealanders surveyed are putting spare cash into savings and 38% are paying off debt. This compares to the second half of last year when more people were paying off debt than those who were saving.

Mr Ennis says this activity shows New Zealanders are becoming more financially aware and are being more prudent with their cash.

“For years New Zealand has had a poor savings record. The recession has bitten many of us hard but for those who are employed, it appears they’re looking ahead at ways to improve their financial situation,” he says.

“Now is a great time for New Zealanders to put a savings plan in place. And while it might sound unusual in these times, people should consider including an allocation of shares in their savings plans.

According to the Nielsen survey only 5% of New Zealanders favour the sharemarket as an investment option but Mr Ennis says that with lower share prices, people may get better value over the longer-term.

“When the markets start to recover, those investors who have accumulated shares now should see their investments grow far more than those who have sold up during this downturn,” he says.

“Of course it’s important to do your homework first. We’d recommend talking to an adviser to get information on the best portfolios available and ensure you have a diverse mix.”

ENDS

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