Otago University study finds 27 percent of New Zealanders are financial strugglers

What happened

The University of Otago's latest New Zealand Consumer Lifestyles report, updated every five years, found 27 percent of respondents could be described as "financial strugglers"—the largest group in the survey and up from 16.5 percent in 2020. These struggling consumers were on average 43 years old, earning $51,000 to $75,000, often held university degrees, owned homes with mortgages and worked full-time. They reported low satisfaction with their standard of living, health, achievements and future security, and were less likely to feel their lives were purposeful or their relationships rewarding. Forty percent of all respondents said they had struggled to buy essentials, 52 percent went without something to buy essentials, and 48 percent said economic uncertainty prevented purchases they would otherwise have made. Nearly half—up from 29 percent in 2020—believed they needed to leave New Zealand to get ahead. Associate Professor Leah Watkins said the financial impact of the cost of living crisis was affecting a broader group than in previous years, and most were pessimistic about improvement. Other consumer groups identified were "aspirational materialists" (11 percent), "contented traditionalists" (13 percent), "ethical pragmatists" (16 percent) and "disengaged drifters" (10 percent).

Why it matters

Financial hardship among New Zealanders has been rising throughout 2026. A Centrix report on 2 October showed hardship accounts reaching 14,500 in August, while retail spending fell for the second straight month as petrol costs and interest rate rises bit. Food insecurity affected 31 percent of households according to a survey on 12 October. This Otago study reveals that the squeeze has spread to middle-income earners—those with degrees, mortgages and full-time jobs—a wider group than before, with most now pessimistic that conditions will improve.

Follow the whole thread: Household cost of living increase 2026

Key facts

• 27% of respondents classified as financial strugglers, up from 16.5% in 2020
• Average age 43, earning $51,000–$75,000 annually with university degrees
• 48% thought they needed to leave New Zealand to get ahead, up from 29% in 2020
• 40% struggled to buy essentials, 52% went without something to buy essentials
• University of Otago Consumer Lifestyles report, updated every five years

Primary source: University of Otago New Zealand Consumer Lifestyles report 2025/26

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