Stress dominates as wages lag and outlook for the year stays flat
More than four in 10 New Zealanders now have little or nothing left to save once essentials are covered, as financial pressure continues to build, according to research company Perceptive’s latest Mind & Matters report.
The Q3 2026 findings show 42% of respondents say their income covers essentials with little or nothing left over, a significant increase since the start of the year. Among those who reported feeling stressed in the past week, that rises to half (50%).
For mortgage advisers, the figures point to tighter household budgets and limited savings buffers among clients facing rising costs. The squeeze isn’t universal. When it held the official cash rate at 2.75% on 28 October, the Reserve Bank of New Zealand estimated the aggregate household saving rate at 3.7%, well above the 10-year average of 1%, which may suggest saving is concentrated among households that can afford it.
Stress defines 2026
According to Perceptive, “Stress has emerged as the defining emotion of 2026 so far”, with 52% of respondents saying they felt stressed in the past week. Optimism and motivation remain well below their levels at the start of the year.
Younger Kiwis are feeling it most: 65% of Gen Z and 60% of Millennials reported feeling stressed, compared with 28% of Baby Boomers. Overall wellbeing was largely unchanged from Q2, with 41% of New Zealanders saying they are simply getting by and 27% struggling.
From global shocks to job worries
Living costs are still the top worry, but the focus appears to be shifting. In Q2, New Zealanders were mainly worried about the Middle East conflict, fuel supply, and petrol prices. In Q3, concerns turned more domestic, centring on unemployment, redundancy, struggling businesses, and wages failing to keep pace with bills.
“Rising costs everywhere with no salary increases to keep up with these costs of living,” one respondent said.
Another said: “Wages staying the same. We literally can’t make anymore cut backs than we have.”
Nearly half (48%) of respondents are concerned about meeting their financial needs over the next five years.
Official data due on 4 November will show whether those fears are easing. Westpac expects unemployment to dip from 5.6% to 5.5%, with annual wage growth of just 2.1%.
Outlook stays subdued
Looking ahead 12 months, 53% expect their circumstances to stay the same, and only 21% expect them to improve. The share expecting things to get worse has eased from a peak of 34% in April to 26% in September, but Perceptive said optimism remains well below January’s level of 43%.
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