KiwiSaver is an increasingly important part of many New Zealanders’ financial lives. We pull millions of dollars out of the scheme each year to buy first homes, as well as helping out in financial emergencies, and it is a big part of lots of people’s retirement planning.

But are you getting the most out of your KiwiSaver scheme?

The nature of long-term investment means that decisions that you make at the outset can have a big impact over time, so it’s important to get things set up well as early as possible.

Here’s a quick KiwiSaver 101.

Check your risk profile

A great first place to start is to think about your risk profile. This refers to your willingness to take risks with your investment.

Someone who needs to withdraw money in three months’ time to buy a house won’t have much appetite for risk at all, because they will need to know exactly how much money they have available.

But someone who is thinking about making a withdrawal in 40 years will have much more appetite for risk because they have many years to ride out any turbulence in the market.

There are online tools that can help you work through what your risk profile might be.

You might think: Why bother to take any risk at all?

In investing, risk can be a positive because it should boost your returns.

“The theory goes that the higher the return you are after, the more risk you are willing and will have to take. The more volatility you can accept in the short term, the greater the expected return in the long term,” said Dean Anderson, founder of Kernel KiwiSaver.

Choose your fund

Once you know what sort of risk you should be taking with your investment, you can choose the right KiwiSaver fund for you.

Most KiwiSaver funds can be described as either cash, conservative, balanced, growth or aggressive. You can find variations on this, and some providers offer single-asset funds that you can add to your portfolio, investing in things like property and cryptocurrency. Some providers also allow an element of DIY and stockpicking for individual investors.

If you can take more risk, a growth or aggressive fund is likely to be the best option for you.

“These funds typically offer higher returns over time, but with more volatility. Given your horizon, you can handle those fluctuations in value and expect to benefit as a result,” Anderson said.

“As an example, if you’re in your late 30s and already have your first home, opting for a high growth fund could allow compound returns to maximise your savings by the time you retire.”

But if you might buy a first home within three years, a conservative or cash fund might be better. Many people have had the experience in recent years of going to withdraw their money and finding the market had dropped at just that moment.

Cash and conservative funds focus on preserving your balance but generally deliver lower returns.

When it comes to adding in things like pure portfolio funds or investments in cryptocurrency, it could be a good idea to do this with some personalised advice.

“Cash has the lowest risk, therefore the lowest expected return. Of the four major asset classes (cash, bonds, property, shares), shares have the highest risk and the highest expected return. Share funds are lower risk than individual shares, and crypto assets, commodities and “private investments” are even higher risk,” Anderson said.

Choose your provider

You’ll also need to think about which provider is right for you. You can go with your bank, or another major fund manager, or one of the smaller providers.

In 2025, RNZ reported that more people have been moving from big bank providers to independent and boutique operators.

Fees vary, as do investment management styles. You might think a low-fee manager that tracks a market index is a good option, or you might be looking for a manager who can beat the market, or one who delivers a responsible investment strategy that aligns with your beliefs.

There are lots of options, so it’s worth taking the time to find one that’s a good fit. Tools like the Sorted Smart Investor can be handy here. Mindful Money is a great platform for anyone wanting to check what their fund might be invested in.

Set your contributions

You’ll need to choose how much you want to contribute. If you’re an employee, you can choose to automatically contribute 3 per cent, 4 per cent, 6 per cent, 8 per cent or 10 per cent of your gross salary. Your employer will match your contribution at 3 per cent, and some offer higher rates. Those default contribution rates are slowly increasing over time and could increase further if National is successful at the next election.

The right contribution for you will probably depend on your goals. A 10 per cent contribution rate will boost your balance much faster. But the money is locked in until you buy a first home or turn 65.

If you’re a while away from doing either of those things, you might only contribute what your employer will match and invest the rest of what you have available somewhere else (provided you are sure you will actually do this).

The great thing about KiwiSaver is that the money is taken for contributions before you see it, so there’s no temptation to do something else with it. If you’re building up other investments, you might want to apply the same policy to those and have the money taken automatically.

Some providers suggest working out how much of a lump sum you want at retirement, and then working backwards to determine what you need to save now to get there.

It can be really hard to think clearly about something that’s a long time in the future, though, so my advice if you’re still decades away from retirement is just to save and invest as much as you can while meeting other financial goals, such as paying off a mortgage and enjoying your life.

Check annually

Don’t set and forget your KiwiSaver. Check on it every year to see whether it’s doing what you’d expect, given the market movements. Even if you’re not working for a while, try to contribute at least $1042 so you get the full Government contribution each year. It’s not as big as it was, but it’s still worth having!

At retirement

When you get to 65, you can withdraw all the money in your KiwiSaver account. But you don’t have to. You might still have 30 years of living costs to fund, so you might choose to leave some or all of it invested and earning returns for a while. Personalised advice can help here too, to come up with a plan to draw down your money over time in a way that works for you.

New research shows that 55% of New Zealanders are struggling with their financial situation – up 17% compared to February 2021 and the highest level since surveying began.

Out of those surveyed, 51% say they are ‘starting to sink, or treading water’ and a further 3.5% are ‘sinking badly’.

Since February 2021, Te Ara Ahunga Ora Retirement Commission has commissioned TRA to survey 4000 people annually, gathering insights on how people are feeling about money and how they are coping.

The latest findings have revealed that women, Māori and Pacific Peoples are being hit the hardest, with 61% of women saying they are in a difficult position financially (compared to 48% of men) and 60% of Māori and 58% of Pasifika are also struggling.

Sorted Personal Finance Lead Tom Hartmann says it’s concerning so many Kiwi are feeling the pressures of cost increases.

“We have now tipped into more than half the population feeling squeezed financially. This significantly reduces people’s ability to grow their money for tomorrow, which has long-term consequences for their future financial wellbeing.”

Those people in the survey who are struggling with money have reported experiencing more financial stress as a result.

Te Ara Ahunga Ora Research Lead Dr Jo Gamble says financial stress impacts relationships with more women, Māori and Pasifika hiding or concealing their financial situation from their family or friends than the average New Zealander.

“Sixty percent of the average population have experienced financial stress within the last year, however this was significantly higher for 18–35-year-olds at 76%, Māori at 76% and 78% of Pasifika,” she says.

“Financial stress can ripple across a person’s whole life impacting not only their financial wellbeing but how they relate to the friends and family, and the choices they make socially.

“It’s important for New Zealanders to reach out for help if they are struggling, as with support and small changes it can be easier to manage money, which benefits your mental wellbeing.”

This research also looked at New Zealander’s financial behaviour in four key areas; budgeting, saving, tackling debt, and KiwiSaver and retirement, which link to Sorted’s key money management pillars.

The research showed some positive movements across all groups with people focusing on their money management skills – including keeping a close watch on their money and considering purchases before they buy them.

“Developing these skills means New Zealanders may be in a better position to improve their financial position once cost of living pressures ease,” says Hartmann.

“When money is tight it can be challenging to keep budgets on track, but developing money management skills can help people keep going during tough times, and then help them get ahead when costs decrease.

“As part of Sorted Money Month, we’ve been encouraging people to hit pause, and take a moment to look at their money situation, and seek out help where they need it. This might be using the tools on Sorted, joining a money event or seeking out help from financial mentors or advisers.

“Even when times are tough, small changes can make an outsized difference and help you stay on track.”

Most people spend money on things they think they probably shouldn’t.

Maybe it’s a coffee on the way to work that you could have made at home, or a new pair of shoes you didn’t really need, bought because they were on sale.

Here are 10 things that experts say could be a waste of money.

Regular tech upgrades: Marketing expert Bodo Lang, from Massey University, said a lot of people wasted money by “upgrading” their phones every year or two. “Typically, the differences between old and new models are minor and, unless the old mobile phone has developed some fault or is not fit for purpose anymore, then it is best to hold on to it for a longer period of time, such as three to five years.”

Subscriptions: If you have a lot of subscriptions you don’t use, it can be a quick way to waste money. They might be for apps you’ve forgotten about, multiple streaming services you don’t use or regular deliveries of vitamins you don’t need. ASB recently launched a new “card tracker” feature that allows people to track and review their subscriptions. The bank said a third of ASB customers spent more than $100 a month on subscriptions.

“Consumers find online subscriptions very tempting because the initial outlay is fairly small,” Lang said. “However, the cumulative cost over a year or five years can be staggering. Music and movie streaming are good examples of this. The desire to be informed, fit, or entertained in this particular way, is not a fundamental need, it is a want.”

Extended warranties: When you buy a new appliance, you’re often asked whether you want to pay for an extended warranty.

Consumer NZ investigative team leader Rebecca Styles said people were often paying hundreds of dollars for protection they already had under consumer law.

“Under the Consumer Guarantees Act (CGA), manufacturers and retailers are obliged to guarantee the products they sell are of an acceptable quality and fit for their purpose. Most appliances, certainly the big-ticket ones, can be expected to perform well for many years, not just the period covered by the manufacturer’s warranty,” she said.

“This means that if your product develops a fault when it’s still reasonably new, you can have it repaired or, if that isn’t possible, replaced – even if the manufacturer’s warranty has expired.”

Some cold and flu remedies: Consumer NZ research writer Belinda Castles said some of the claims made by cold and flu remedies did not stack up.

“Most over-the-counter medicines won’t offer anything more than a placebo effect. The best thing you can do is ask your doctor for a sick note instructing you to take a few days off. This helps prevent you passing the virus on,” she said.

Castles said paracetamol and ibuprofen were the best option for anyone feeling under the weather, and also cheaper than cold-specific treatments.

Nasal sprays could help with congestion but using them for more than a few days could create negative side effects.

Some “green” products: It’s worth checking the credentials of anything you’re paying more for, expecting to be getting an environmentally friendly product. Consumer NZ spokesperson Abby Damen said many people would pay a premium for “sustainable” products. “But we’ve assessed the claims on supermarket products and cosmetics and found many unsubstantiated ‘green’ claims that businesses couldn’t back up. Don’t fall for the green tax.”

Wasting money on power: Leaving your heated towel rail on all the time can cost $3 a week. While that probably won’t make a huge difference overall, looking for options to save money on your power bill could – it’s worth checking regularly to see if there’s a better deal out there.

Depending on how you use power, you could save with a time-of-use plan, which offers cheaper prices off peak. “You’re likely overpaying by $300 to $500 a year if you haven’t switched in the last two years. Use Powerswitch or MoneyHub and see for yourself – it’s embarrassingly easy,” said investment adviser Jeremy Sullivan.

Card surcharges: If you’re tapping or waving your card when you make a purchase, you could be wasting 2 percent or more every transaction. If it’s an option, inserting or swiping could be a better use of your money.

Lotto tickets: Sullivan said people were wasting money on buying Lotto tickets. “Your odds of winning big? One in 38 million. The true gamble is thinking it’s a plan, not entertainment.”

Travel insurance you already have: If you’re travelling and have paid for your bookings on your credit card, you may find you already have travel insurance and don’t need to pay for any more. Sullivan said people should check what cover they had. “Cards like ANZ Platinum or Westpac Mastercard include travel insurance – yet many still shell out $150-plus for a separate policy. Classic case of not reading the fine print.”

Not negotiating your mortgage rate: Sullivan said people should also push their banks for better home loan rates when it was time to refix. “Kiwis are weirdly polite with banks. Just asking your bank for a better deal can shave 0.25 percent to 0.5 percent off your mortgage rate – worth thousands over time. No haggling needed, just ask.”

Lang said what someone needed or did not need was unique to each individual.

“A need is typically something essential. Products that satisfy needs tend to have a strong functional appeal, rather than an emotional or symbolic appeal. Needs also tend to be fairly stable over time and across cultures. Lastly, needs also tend to be non-discretionary. If unmet, there’s a real consequence. Think food, shelter, healthcare, education, basic clothing.

“Wants on the other hand tend to be desires shaped by culture, social trends, advertising, and identity. Wants tend to be subjective and highly variable and often reflect lifestyle, status, or emotional goals …Often wants are aspirational, symbolic, or even habitual.

“Consumers perception of wants and needs can be shaped by businesses. Many expensive purchases, such as a car or a kitchen appliance, with no discernible functional advantage over an alternative are about what consumers want, rather than what they need.

“But even in far less expensive product categories, consumers often buy products that are more about wants than needs. Think, anti-aging skin creams. Research by Consumer NZ has shown that sunscreen does a far better job of keeping skin looking young and healthy, compared to expensive skin care creams. But consumers are tempted by a premium price, suggestive advertising, and irresistible packaging.”

Financial mentors say problem debt isn’t only a problem for the lowest-paid New Zealanders, and action is needed to stop debt collectors “deliberately distressing” struggling people.

FinCap, which represents the country’s financial mentors, has released its latest Voices report, outlining data for 2024.

It was to be presented at Parliament on Thursday morning.

The report shows mentors are dealing with a growing number of clients, despite the number of people working in the field dropping. From 19,543 closed cases in 2021, there were 25,140 dealt with last year.

The top reason that people were experiencing hardship was the cost of living, responsible for 29 percent of cases.

FinCap said mentors had reported much more engagement with people who might previously have not needed assistance, including those in work and not receiving a benefit, and people with home loans.

Ten percent of the mentors’ clients were people who owned their own homes. That is up from 7.5 percent in 2021.

The mentors reported an 88 percent increase in the number of people seeking help who earn more than $1000 a week in the past three years.

One mentor who was not identified, but worked in a regional centre, said they had seen some “really, really well off people”.

“In their previous lives, [they] have been extremely well-off, had really, really good jobs. And then just one thing has unravelled and then slightly another thing and then … Trying to negotiate our systems seems to have caught them out.”

People earning more than $1000 a week were spending a median 19.7 percent of their money on groceries, compared to 25 percent for people earning $250 to $499.

One in eight closed cases resulted in a client taking money out of KiwiSaver.

Car loans were 21 percent of all unique debts reported, at a median $10,230.

People with a car loan reported expenses exceeding income by 10 percent, and those without a car loan by 6 percent. But the percentage by which expenses exceeded income had decreased for those with a loan, and risen for those without.

“The ongoing cost-of-living crisis has led to an increased debt burden for many people. Many of the whānau financial mentors work alongside are resorting to KiwiSaver hardship withdrawals just to make ends meet or avoid further debt,” FinCap’s report said.

Chief executive Fleur Howard said “unreasonable” debt collection practices were making the experience worse.

She said debt collectors did not have incentives to consider the impact of their actions on the people they were chasing for money.

“The consumer protections financial mentors might use to challenge unreasonable debt collection conduct can be unclear or unactionable depending on which industry the debt originated from.

“Debt collection issues can be overwhelming for many whānau who have multiple debts being chased. Interactions with debt collectors can be confrontational, intimidating, and stressful.”

Many consumers felt vulnerable, especially if they were not familiar with the laws governing the process.

“They can feel there is no option but to pay unrealistic demands relative to their financial circumstances, despite this meaning they might not be able to afford food to eat.”

Debt collectors faulted

Howard said debt collectors were sometimes contacting people unreasonably frequently, calling at unreasonable hours, calling other family members or employers and applying unreasonable fees and interest.

Sometimes people were being coerced into paying debt that had previously been written off.

Howard said the rules on debt collector conduct should be tightened. She said it was still not even possible to tell who the country’s debt collectors were.

The line between legitimate behaviour and harassment needed to be more clearly defined.

“Financial mentors tell us they are working with people who are being harassed and coerced by debt collectors at work, at home, and on social media. This can endanger people’s employment and embarrass them in front of their communities,” Howard said.

She said it seemed deliberately distressing.

“These tactics force people to agree to repay debts they may not be legally responsible for, and repayment plans they can’t afford. This can send people into a spiral of missed repayments, and see small initial debts balloon in size.

“There are debt collection agencies who act responsibly, but the lax legal framework creates a wild west situation, where some unscrupulous debt collectors act unethically.

 ”The Financial Services Reforms Bills currently before Parliament and the government’s planned review of the Fair Trading Act are important opportunities to fix the law around debt collection.”

The Green Party supported the call for action.

“We support the calls to regulate debt collectors, including greedy behaviour by Buy Now Pay Later companies. We also agree that the government needs to address the core issue by lifting income levels so families can survive without falling into debt or poverty,” said Green Party spokesperson for commerce and consumer affairs, Ricardo Menéndez March.

An organisation representing financial mentors warns unethical debt collectors are harassing people to pay-off loans at their workplaces, homes and on social media.

FinCap charity has released its annual Voices report after collecting data from more than 700 financial mentors.

Its chief executive Fleur Howard said some debt collectors are deliberately panicking debtors and stricter rules are needed.

“Financial mentors tell us they are working with people who are being harassed and coerced by debt collectors at work, at home, and on social media. This can endanger people’s employment and embarrass them in front of their communities,” she said.

“These tactics force people to agree to repay debts they may not be legally responsible for, and repayment plans they can’t afford. This can send people into a spiral of missed repayments, and see small initial debts balloon in size.”

The report shows half of those seeking help from a financial mentor are in work, while one in ten have a mortgage.

Financial mentors have seen an 88 percent increase in waged or salaried clients earning over $1000 per week since 2021.

The report states that many households have taken on debt to pay bills and keep food on the table, and a large burden of accumulated household debt has been building, much of which has become unmanageable.

It said some debt collectors were also using coercion or illegitimate threats of legal action and turning up at people’s workpaces, homes and sending excessive automated texts and emails.

“This isn’t about getting people out of debts that they legitimately owe,” Howard said.

“Some debts arise that should never have been issued under today’s responsible lending rules. Sometimes, they are debts owed by a relative, which people are pressured into taking responsibility for, or there is actually no legitimate debt at all.”

Howard said many households were struggling with the burden of accumulated and unmanageable debt.

“There are debt collection agencies who act responsibly, but the lax legal framework creates a wild west situation, where some unscrupulous debt collectors act unethically. “

The Fair Trading Act governs all private debt collection and in May, Commerce and Consumer Affairs Minister Scott Simpson said he would review the Act later this year with a responsibility to “safeguard the interests of consumers and ensure that their rights are fairly upheld”.

Howard said that planned review, alongisde the Financial Services Reforms Bills currently before Parliament were important opportunities to fix the law around debt collection. 

“Debt collection reform will enable people to repay money they legitimately owe, without being subject to harassment and bullying,” she said.

People surviving on benefits and other very low incomes are still being preyed on by lenders giving them unaffordable loans, despite the existence of responsible lending laws, a report to be presented in Parliament on Thursday morning says.

The Voices report from budget umbrella group Fincap follows similar claims made by financial mentors in select committee hearings last week, but it also calls on MPs to follow the UK and Australia in passing laws to regulate debt collectors, which even some debt collectors have been lobbying for.

“Every day, financial mentors see real struggles made worse by loans that were unaffordable from the start,” Fincap chief executive Fleur Howard said in the Voices report.

She said financial mentors regularly saw people who were being harassed and coerced by debt collectors at work, at home, and on social media, calling the lack of regulation a “wild west situation”.

“This can endanger people’s employment and embarrass them in front of their communities. These tactics force people to agree to repay debts they may not be legally responsible for, and repayment plans they can’t afford,” she said.

In order to meet repayments some debtors were skipping meals, doctor’s visits or not heating their homes in winter.

Fincap also used the Voices report to call for a temporary pause on lenders being able to go to court to get attachment orders against benefits to repay loans of up to 40% of benefits, until the issue was fully investigated.

The use of attachment orders has been described as converting Work and Income systems into a “conveyor belt for private debt collection”, undermining benefits’ role in keeping vulnerable families fed, healthy and housed.

It was an issue the last government may have been inching towards acting on before losing power.

There have been mounting concerns from advocacy groups that people living on benefits are being granted loans by private lenders, despite benefits being insufficient to live on, even if people have no debts.

The 2024 Ka Mākona Income Inadequacy report from Kore Hiakai showed beneficiaries could, under average circumstances, expect a consistent weekly deficit between $93.93 and $162.04, depending on the make up of their whānau and which income support they were receiving.

At select committee hearings earlier this month, Financial coach Shula Newland told MPs that when private lenders make loans to people on benefits, it was clear evidence that responsible lending laws were not working.

“Nobody on a benefit should be able to access a loan, and yet they still are. This shows legislation is not working,” she said.

Newland said non-bank lenders’ affordability assessments often did not include basic things like money for health or car maintenance.

And, she said: “They just assume people stop all non-essential spending to afford the repayments for their loan. That is not how real life works. People working full time should not have to live like they are on benefits just to afford their loan.”

MPs were told that weak enforcement of lending laws allowed irresponsible lending to continue.

“Stronger enforcement is really required,” Newland said, and called for large fines to be imposed.

“The lenders are not going to stop causing harm until it hurts their bottom line,” she told MPs.

The Voices report said car loans were one of the chief sources of misery for families seeking help from financial mentors, but a large number also had car repair debts because the cars they had been sold were unreliable.

MPs are currently considering lending law reforms, in part designed to make it easier for people to get loans.

In the Voices report Fincap pointed to “loopholes” in lending laws that allowed telecoms companies, and buy now, pay later lenders to make loans without full affordability assessments, calling for those lenders to be brought under responsible lending laws.

It isn’t only financial mentors who believe the current laws are not being adequately enforced.

Lyn McMorran, from the Financial Services Federation, a lobby group for lenders, said the enforcement of lending laws was too slow, giving the example, of how long it had taken the Commerce Commission to take action against Go Car Finance, a car finance company no longer making new loans.

She did not blame the commission, saying it had not had the tools it needed to effectively enforce lending laws.

The commission is losing its role as regulator of lending, with the Financial Markets Authority Te Mana Tātai Hokohoko taking over with greater powers, including potentially a right to search lenders’ business premises without warning or warrant.

“The move to the FMA is the magic bullet because it has more tools in its tool kit to investigate more quickly and effectively,” McMorran said.

Many New Zealanders are living in 2025 with a very problematic financial situation. The economy is slowing down, there are far more unemployed people than there are jobs, consumer debt levels are suffocating, and people are spending money they don’t have on things they don’t need. The government does not help with any big projects or hiring.

Adding to the downforce is a rise in the cost of living, while wages aren’t keeping up. More New Zealanders rely on credit cards, personal loans, and ‘interest-free’ traps to maintain a lifestyle they can’t afford. The result? More stress, more debt, and zero financial freedom.

The Idea That Things Will ‘Sort Themselves Out’ is False

One of the most dangerous financial lies is believing things will “just get better” over time. They won’t. The system will bleed you dry if you don’t actively manage your money.

 

Financial success isn’t about luck—it’s about making ruthless, calculated decisions. If you don’t budget, you’ll stay broke. You’ll drown in debt if you use credit cards and BNPL to fund a lifestyle you can’t afford. If you waste money on online shopping, you’ll wonder why you still live payday to payday at 50. I am writing directly because I keep seeing people’s mistakes despite sharing guides on MoneyHub for 5+ years.

Debt is the New Normal – But It Shouldn’t Be

Banks and financial institutions have spent decades brainwashing people into believing that debt is normal. It’s not. Debt is the reason people never get ahead.

 

The problem isn’t just debt itself—it’s the attitude that owing money is “fine.” It’s not. You don’t have control when you’re in debt – your lender has the power. You go to work every day not to build wealth, but to make monthly payments. Interest rates, repayment schedules, and bank statements dictate your future. That’s not financial freedom – and I want people to know why it’s a national problem.

The Silent Crisis: New Zealanders Are Financially Unprepared

A growing number of middle-income New Zealanders are one financial emergency away from disaster. The data speaks for itself:

 

And yet, people continue to act like nothing is wrong. They upgrade their phones, subscribe to more services, and finance cars they can’t afford while wondering why their financial situation never improves.

Here’s something most people don’t want to hear:

  1. ​You will never be wealthy if you’re not financially disciplined.
  2. ​The divide between the financially responsible and the financially reckless grows wider yearly.
  3. ​Wealth isn’t built by hoping things will change – it’s built by taking extreme ownership of your money.

 

That means:

 

The Most Valuable Lesson for 2025

New Zealanders need to wake up. The financial system has a habit of making the rich richer while keeping the poor in debt forever. The only way to break free is to stop playing the game on their terms.

 

This guide is one of our most important, and I encourage you to read it from start to finish to see how changes in everyday habits give you financial power.

The New Zealand government set up a new NZ$190 million ($112 million) social investment fund in its 2025 budget to make targeted investments designed to help improve the lives of its vulnerable people.

Finance Minister Nicola Willis said the fund will invest in 20 initiatives over the next year, with a tracking system built into the programmes to check their impacts.

“The fund is about more than new money. It’s about government investing earlier, smarter and with much more transparent measurement of the impact interventions are having for the people they are designed to help,” Willis said in a speech, ahead of the government budget on May 22.

Willis said the fund’s investment plans will be guided by data and evidence as the government seeks to identify which vulnerable groups could put more pressure on the government’s finances and the federal budget in the future.

Willis this month had said baseline spending in the budget would be reduced to NZ$1.3 billion from its prior estimate of NZ$2.4 billion, which could help Treasury to forecast an operating surplus, excluding the financial position of the government-owned accident health provider.

The government invests around NZ$7 billion ($4.13 billion) each year, buying social services from non-government agencies.

“Over the next two to three years, I expect to see significant amounts of funding transferred from current social services to the Social Investment Fund as communities and providers develop new approaches to working with government,” Willis said.

Credit reporting agency Centrix released its June Credit Indicator today. It showed household arrears were levelling out while hardship and company liquidations were on the rise.

“There are signs our economy is beginning to head in the right direction,” Centrix managing director Keith McLaughlin said.

“Albeit with a few bumps along the way. Businesses, particularly in construction, property and hospitality, continue to face significant challenges.”

Nearly 15,000 individual bill payers were in financial hardship, an increase of 300 from May, and 14% more than a year ago, Centrix said.

The report said 21,900 households were overdue on mortgage payments in May, 700 fewer than April.

Almost half of those cases, 46%, were due to difficulties paying mortgages, a jump of 19% from last year. Another 28% of hardship cases were due to credit card debt, and another 18% related to personal loan repayments.

“The age group most affected by financial hardship is those between 35 and 49 years old,” Centrix said.

Buy now, pay later arrears rose to 9%, up slightly on last year. Energy bills arrears are 5% higher than last year, and phone bill arrears were unchanged.

On the other hand, the proportion of the “credit-active population” in arrears is a percentage point lower than last year.

Centrix said that the slight yearly decrease was “reflecting ongoing year-over-year improvement”.

The number of people behind on their bills in May was 485,000, an increase of 2000 from April.

Of those, 180,000 are more than 30 days past the due date, and 81,000 are more than 90 days overdue.

Overall, 12.51% of the credit-active population is in arrears, compared with 12.43% in April.

1. Get Free Money for Studying

 

2. Pick the Best Student Bank Account

 

3. Control the Urge to Splurge

 

4. Ask About Student Discounts

 

5. Don’t Pay Full Price for Textbooks

 

6. Talk to Your Parents

 

7. Get Office 365 and Cloud Storage for Free

 

8. Join Uni Clubs

 

9. Know Your Wants vs Needs

 

10. Understand Renting Options

 

11. Know Your Rental Rights

 

12. Find the Cheapest Power Provider

 

13. Avoid Lending Money to Mates

 

14. Set Up a Flat Account

 

15. Build a Budget — and Stick to It

 

16. Consider Furnished Flats

 

17. Think About Contents Insurance

 

18. Protect Your Devices

 

19. Sell Old Gadgets

 

20. Understand the Nature of Student Debt

 

21. Use Free WiFi

 

22. Credit Cards: Tread Carefully

 

23. Book Flights Early

 

24. Ask for Help When Needed

 

25. Avoid Payday Lenders