Women Feeling the Brunt of Economic Strain, Data Reveals

A new report by the Retirement Commission has highlighted a growing financial disparity between men and women in New Zealand, with women disproportionately affected by the current economic climate. According to the financial sentiment tracker, 62% of women now feel financially uncomfortable, compared to 51% of men — marking the highest levels of concern since the research began in 2021.

The data also shows a widening gap in financial comfort between genders, increasing from a five percentage point difference in 2022 to an 11 percentage point gap in 2025. This trend has been most pronounced in the past year, with the commission noting that while men are beginning to recover financially, women are not seeing the same improvements.

Tom Hartmann, the commission’s personal finance lead, pointed to income inequality as a key factor in this growing divide. He explained that when incomes are equal, the gap in financial comfort is much smaller. However, women are more likely to be in lower-income brackets, and in households with traditional gender roles, they often take on the responsibility of managing family finances, which can increase financial stress.

Liz Koh of Enrich Retirement added that women are more likely to plan for the future financially and may feel more anxious about money due to the gender pay gap and periods of time spent out of the workforce, such as during pregnancy or caring for children. This, combined with a tendency for women to underestimate their financial capability and men to overestimate theirs, can lead to a lack of confidence in managing financial issues.

David Verry, a financial mentor from North Harbour Budgeting Services, noted that in some cases, women may end up bearing the brunt of financial obligations, even when they are not the primary decision-makers. He highlighted scenarios where men take out loans in a woman’s name for personal use, leaving her with the debt if the relationship ends.

Young people and Māori communities are also facing significant financial challenges. The percentage of 18-34-year-olds feeling financially comfortable has dropped from 53% in 2022 to 43% this year, while the proportion of Māori feeling comfortable has decreased from 42% in 2023 to 34% in 2025.

Overall, 56% of people in 2025 reported feeling financially uncomfortable — a rise from 49% in 2021/22. Hartmann emphasized that this growing discomfort is closely tied to the broader economic conditions, including rising living costs and stagnant wages.

With many households lacking emergency savings — 44% of people overall — the commission warned that this lack of financial resilience could have serious consequences, especially in times of economic uncertainty.

As the economic landscape continues to shift, the report underscores the urgent need for targeted financial education, support, and policies that address the unique challenges women, young people, and Māori face in securing their financial futures.