While the knowledge levels are reasonable overall, there are gaps that could be pivotal in deciding how the population adapts in future to the modern financial environment and how well we do in retirement.
There is a strong correlation between financial knowledge and socio-economic status. Across all topics, knowledge generally increases with age, income, education and also net wealth. This finding matches that of other international surveys.
- Levels of knowledge are specific to circumstances or related to experiences and the different lives that people lead. For example, those on low incomes may have less knowledge of investment as they do not have the money to invest.
- People with lower levels of personal financial knowledge are more likely to be young (18- 24); or older (75 years and over); have lower levels of education, income and net wealth; or be of Maori or Pacific ethnicity (possibly because of their younger age profile, lower levels of education, income and net worth); and be tenants rather than homeowners.
