A new survey has found more young people are saving for an overseas holiday than are saving for the deposit for a first home.
Research by Warehouse Money (a subsidiary of The Warehouse Group) found 53 percent of people aged between 18 and 29 are saving to travel. That compares to 47 percent who said they were saving for the deposit for a home.
Warehouse Money executive general manager Hadyn Halls said this could be due to the loan-to-value restrictions and rising house prices.
"As home ownership seems increasingly out of reach, it's possible that younger Kiwis are looking to gain life experience and are putting off settling down."
The survey looked at people who described themselves as savers, rather than all young people.
The most common thing they said they were saving for was an emergency (73 percent).
Similar results were found for savers aged 30- 39.
Thirty-three percent said they were saving for a house deposit, while 45 percent said they were saving to travel.
Thirty-nine percent of 30-somethings said they were saving for a better future for their children, while 22 percent said they were saving for their kids' school expenses.
The most common reason for saving among people in their 30s was to have funds for an emergency.
Among people in their 40s, 11 percent said they were saving for a house deposit.
As people age, saving for their retirement becomes more of a priority.
The survey found that 20 percent of 18-29 year olds were saving for their retirement.
That compared to 38 percent of people in their 30s.
Fifty-nine percent of people in their 40s are saving some of their money for retirement.
The figure rises to 70 percent for people in their 50s.
Among people aged in their 60s, the survey found 63 percent said they were saving for their retirement.
Even in their 70s, the survey found that 35 percent of people were saving for retirement.
The survey also found 18-29 year olds are the age group that are least likely to have insurance.
Thirty percent said that they "don't really understand" their insurance policies. Forty-three percent of respondents who are renting said they did not have contents insurance.
Newshub.
