Higher incomes feeling the squeeze

New data from Stats NZ shows that while New Zealanders generally are feeling a bit more comfortably off, some of the richest are feeling the squeeze.

The General Social Survey asks people whether they have not enough, only just enough or more than enough money to meet their everyday needs.

The proportion with enough or more than enough has increased from 51 per cent in 2008 to 63 per cent in 2018. In 2008, 15 per cent said they did not have enough to meet their everyday needs, But last year that was 9.8 per cent.

But about a quarter of people with household income between $100,001 and $150,000 said they had only just enough, and 17 per cent of those earning more than $150,000. This was up from one in five and one in nine, respectively, in 2014.

About 4 per cent of each income bracket said they did not have enough.

On a personal income basis, 12.2 per cent of those earning more than $70,000 said they had only just enough and 2.4 per cent said not enough.

‘‘In 2008 and 2009, at around the time of the global financial crisis, unemployment in New Zealand was rising sharply and this may have had an impact on how New Zealanders felt about their own financial wellbeing,’’ wellbeing and housing statistics manager Claire Bretherton said.

In 2018, 48 per cent of renters felt they had enough or more than enough money to meet everyday needs, up from 37 per cent in 2008. This coincides with a decrease in the proportion of renters saying they didn’t have enough money, from around 26 per cent in 2008 to 17 per cent in 2018.

Despite these improvements, renters remained over twice as likely as homeowners to say they didn’t have enough money to meet everyday needs.

Brad Olsen, an economist at Infometrics, said the general trend towards people feeling better off was probably because of a combination of lower interest rates, higher wages, higher unemployment and house price growth.

He said, despite the data, there were conversations around the country about the rising cost of things such as petrol, insurance, rent and housing. ‘‘With these rising costs being undeniable across the country, and a softer outlook expected for employment, this position could reverse soon, with more households feel that rising costs are outpacing rising wages.’’