Just 38% of Kiwis optimistic about their finances heading into election, report shows

Wednesday, 15 July 2026

The upcoming general election is balanced on a knife edge, and new data from a credit reporting company shows exactly why.

A weak economy, low wage growth and high fuel prices have resulted in two-thirds of people saying they have had to dip into savings to make ends meet, and some had to borrow to make ends meet, according to a survey by Experian.

Nearly the same proportion (65%) had reduced non-essential spending in response to rising expenses, Experian said.

That was hitting retailers, hospitality businesses, and the domestic tourism sectors hard.

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The biggest cutbacks were across eating out (69%), spending on takeaway (64%), shopping and retail purchases (64%) and domestic travel and holidays (39%), Experian said. Almost two in five (40%) of New Zealanders reduced spending on subscriptions and digital services throughout 2025 as consumers looked for additional ways to manage household budgets.

In all, 70% of people told Experian’s surveyors that they had changed their financial behaviour in 2026, and it appears that was partly because they were expecting their personal financial troubles to continue.

Only 38% of people felt optimistic about their finances improving this year, promising a gloomy mood when voters head into the polling booths in November.

Experian tracks the finances of New Zealanders with data provided by the likes of banks, insurance companies and utility companies, compiling credit reports and scores on individuals.

The findings mirror The Post/Freshwater polling in June that showed 63% of the voting population felt relieving the cost of living was their number one desire from politicians. Slightly more people blamed the National-led Government for the state of the economy than felt the previous Labour-led government was at fault, or international conflicts including US President Trump’s war on Iran.

National has messaged on boosting the economy, but is not rated as doing well on relieving pressure on the working middle.

When asked whether National’s Christopher Luxon or Labour’s Chris Hipkins would “make the decisions most likely to improve my life”, Hipkins scored most highly. Polling by The Post showed people felt there was a huge “empathy” gap, with 48% thinking Hipkins would “understand what me and my family are going through best”, and just 23% thinking Luxon would.

Labour has been hammering cost-of-living in its messaging, seeking to blame the sitting Government, especially the price of groceries, which Experian said was households’ biggest financial pain point.

“National promised to fix the cost of living, but two and a half years on, their record is higher costs and higher unemployment,” Labour finance and economy spokesperson Barbara Edmonds said last week.

“Power prices have gone up 20% in two years. Everyday food items like mince and milk are more expensive. Seeing a doctor costs more, and now mortgages are set to go up too,” she said.

She did not suggest that Labour would bring down prices, instead saying Labour would “put more money back in people's pockets” with three free doctor's visits, a $20 public transport fare cap, and its SolarSaver policy to help families save money on their power bills.

National in return has claimed Labour would pay for such moves by hiking taxes, and is seeking to hammer that message home through a poster campaign on billboards on Auckland highways.

Barrett Hasseldine, head of data science at Experian Australia & New Zealand, said: “Consumers are becoming far more strategic in how they manage financial pressure. Rather than pulling back spending entirely, many households are reprioritising where money goes, favouring spending that offers greater value, flexibility or control over cashflow.”

He said: “This points to a more financially stretched consumer environment, where many households are juggling day-to-day commitments while trying to keep up with rising living costs.

“Credit and flexible payment options can play an important role in helping consumers manage timing gaps and maintain cash flow, but increased reliance can also be a signal that pressure is building.”