Auckland: 16 January 2014 – Nielsen Survey: 64 percent of New Zealanders believe they will achieve financial goals, but only 20 percent of those think current planning efforts will be sufficient
Future Investment Plans Are Stronger Than Current Saving Activities Retirement and Household Emergencies Top Priorities for Active Saving
According to a new study by Nielsen, a leading global provider of information and insights into what consumers watch and buy, nearly two-thirds of respondents (64%) believe they will achieve all their financial goals for the future, but of those, just 20 percent trust their current planning will be enough. 44 percent say they will need to closely monitor and adjust investments from time to time in order to best meet their financial expectations. Over a third of respondents (36%) have no confidence they will meet their financial goals with either current or by modifying their asset allocations.
“More Kiwis planning to save for the future compared to what they are saving now indicates an opportunity to better educate consumers on saving and investment strategies that will help them meet their financial goals” said Rob Clark, managing director, Nielsen NZ. “As growing numbers of New Zealanders wind down their working life there are also concerns about reliance on government support for retirement and health care. Understanding consumer saving strategies provides insight to how they are responding to the challenge of ensuring financial security”.
Clark continues, “In addition, from our Consumer and Media Insights research, we are beginning to see shifts towards longer term thinking with year on year increases for those taking up KiwiSaver (12%) and investing in shares (15%).”
The Nielsen Global Survey of Saving and Investment Strategies polled more than 30,000 Internet respondents1 in 60 countries to evaluate how consumers around the world are preparing for current and future financial expenses. Nielsen evaluated 16 different saving and investment strategies used to fund a range of 14 long- and short-term financial goals2.
Future Investment Plans Are Stronger Than Current Saving Activities
Across all 14 goals reviewed, New Zealand respondents’ intentions to save in the future are stronger than current saving activities for all but one goal— retirement funds (41% active savers are equal with 41% future savers). (see chart)
Retirement and Household Emergencies Top Priorities for Active Saving
Nielsen information shows that for New Zealanders who are actively saving now, retirement funds and unexpected household emergencies are priorities among more respondents (41% and 39% respectively).
Clark adds, “The number of Kiwis saving for retirement is actually ahead of the global average (where 35% are actively saving), however, it’s not yet clear whether these current saving rates will deliver a comfortable retirement.”
About the Nielsen Global Survey
The Nielsen Global Survey of Saving and Investment Strategies was conducted between August 14 and September 6, 2013, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, is weighted to be representative of Internet consumers, and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behaviour of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Survey, was established in 2005.
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.
1 While an online survey methodology allows for tremendous scale and global reach, it provides a perspective on the habits of existing Internet users, not total populations. In developing markets where online penetration has not reached majority potential, audiences may be younger and more affluent than the general population of that country. Additionally, survey responses are based on claimed behavior, rather than actual metered data.
2 The 14 goals evaluated included: health issues, unexpected household emergencies, higher education, children’s future, marriage, loss of job/income, first-time main home property purchase, retirement fund, personal luxury purchase, having a baby, financial legacy, starting a business, upgraded property purchase, and second-home/vacation property purchase.