More than two-thirds of consumers are cutting back on spending as a means of coping with inflation, with many looking for a hefty wage increase or considering a better paying job and other ways to supplement their income.
File photo. Photo: 123rf
Last month's survey of more than 1600 Westpac customers indicates 97 percent were worried about the rising cost of living over the next 12 months, with younger customers and families with young children especially worried.
More than a third thought the cost of living would result in more people leaving the country and reduce the country's standard of living compared with other countries.
Nearly half expected the current cost of living to have some impact on the ability of future generations to succeed in life as well as make it more difficult to make positive choices about sustainability and the environment.
About nine in ten customers said rising fuel and grocery prices were already affecting them, with 44 percent spending less on petrol, 43 percent spending less on eating out and takeaways, and 41 percent were spending less on groceries.
However, Westpac NZ general manager of consumer banking and wealth Ian Hankins said the survey also indicates most households were taking proactive steps to make their money go further.
About half had drawn up a budget, while 58 percent had cut out wasteful spending and 44 percent were shopping at cheaper stores.
However, 48 percent of customers said they would not cutback spending on healthcare and health products, with 44 percent committed to paying household bills and 56 percent would not cut back on spending on public transport.
"It's also good to see a third of people say they plan to save more money this year, compared to just a quarter saying they plan to save less," Hankins said.
The survey also found many people were looking to boost their income to better manage rising costs.
Of those in full time work, 20 percent asked their employer for a pay rise, and a further 32 percent were considering it, while 56 percent were either looking for a higher-paying job or might contemplate doing so.
Respondents were looking for a pay rise of at least 10 percent.
