Major bank study reveals spending and saving trends
An ASB study has revealed that despite a 9% gender pay gap, Kiwi women are 2% financially better off than men on a day-to-day basis, due to women spending less, and saving more.
However, women’s KiwiSaver balances still end up 12% lower at retirement due to lower pay, and a smaller appetite for risk.
The data was collected from over half a million ASB personal banking customers and looked at spending, saving and credit behaviour, and analysed the extent to which New Zealanders had financial freedom and control. ASB chief executive Vittoria Short noted that women “trumped men on all saving measures studied,” with one in three women having at least $10,000 set aside.
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However, the trend reversed when it came to retirement savings and investing into KiwiSaver schemes.
“Our study makes it clear that what we do with our money has a greater impact on financial wellbeing than income alone,” Short said.
“Setting money aside for tough times is the most important thing you can do to improve your immediate financial wellbeing, but longer-term planning is vital too.
“Knowing where to start is key, but ASB has made it easier for customers to assess their financial situation, set goals and take practical steps to reach them.”
ASB executive general manager private banking, wealth & insurance Adam Boyd said that “savvy savers” could benefit significantly by looking into their investment options, and encouraged women to seek good financial advice to make sure they are getting the best possible returns on their existing cash.
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“ASB’s ongoing financial wellbeing survey highlights that while women are savvy savers, they could do a lot more with their money by being savvier investors,” Boyd said. “ASB’s regular Investor Confidence and KiwiSaver surveys tell us that women rate their investor confidence and knowledge far lower than men, and they also tend to shy away from riskier, growth-orientated funds.”
“To overcome this confidence issue, we strongly encourage women to get some professional financial advice to make sure their KiwiSaver or other investments are working as hard as possible for them,” he added.
