New Zealand's savings gap widens as regions face stark financial divides
New data from Westpac reveals sharp differences in savings habits across New Zealand. While many struggle to build financial reserves, some regions show stronger savings behaviour than others. The findings highlight how housing costs and regional economies shape personal finances.
In Auckland and Northland, only one in five Westpac customers regularly puts money into savings each month. Median balances in these areas sit below $1,500, reflecting tighter budgets. Auckland's high living costs have kept savings rates low—households there save just 2-4% of their disposable income, far less than in Northland, where rates reach 5-7%.
Northland's savings trends have remained steadier in recent years. Lower living expenses and post-pandemic migration helped residents maintain or slightly increase savings between 2020 and 2025. Economic shifts, including COVID-19 recovery (2021–2023) and Reserve Bank interest rate rises (2022–2024), also played a role.
By contrast, Canterbury and Otago lead in savings performance. Twenty-eight per cent of customers there make monthly contributions, with median balances at $4,200—the highest in the country. These regions also have the largest share of savers with $15,000 or more, at 32%.
Nationwide, the picture remains uneven. Over a third of all Westpac customers have less than $500 in savings, while the typical monthly deposit is just $150. KiwiSaver balances also reflect the challenge: only 38% of customers have over $40,000 saved in their accounts.
The data underscores regional disparities in financial resilience. Areas with lower living costs, like Canterbury and Otago, show stronger savings growth. Meanwhile, high-expense regions such as Auckland face greater hurdles in building financial security. The findings arrive as economic pressures continue to influence household budgets nationwide.
