Finance expert says cost of living disproportionately impacts Pacific peoples

The Retirement Commission reports the cost of living crisis is disproportionately impacting Pacific peoples.

Sorted and Retirement Commission Personal Finance Lead, Tom Hartmann says Pacific peoples are experiencing greater levels of financial distress compared to the rest of Aotearoa.

"Financial discomfort for Pasifika is high but happily it hasn't been growing since the cost of living crisis started," Hartmann says.

He says it particularly affects those 35 years and older, where 61 per cent of Pacific peoples are experiencing financial discomfort compared to 51 per cent of other New Zealanders.

Additionally, 41 per cent of Pacific peoples worry about debt compared to 20 per cent of the remaining populace.

Speaking with Nemai Tagicakibau on Pacific Mornings, Hartmann said this updated data followed a report Te Ara Ahunga Ora Retirement Commission (TAAORC) commissioned in 2022 that was undertaken by the Ministry for Pacific peoples (MPP).

Last year's report found housing solutions and financial education are key to improving the wellbeing of Pacific peoples in retirement.

However, Pacific homeownership has declined by more than half over the last three decades going from just under 51 per cent in 1986 to 21 per cent.

Despite hardship and home ownership impacts, Hartmann says Pacific peoples are on the uptick in setting financial goals and aiming for home ownership.

"We're finding that [Pacific peoples] are more orientated to the future and thinking about retirement plans. That's gone up to 69 per cent from 57 per cent a year ago."

He also says that Pacific peoples are contributing more to their Kiwisaver, going from 49 per cent last year to 58.

However, early withdrawals on Kiwisaver due to significant financial hardship had doubled compared to a year ago.

Hartmann says withdrawal is a good thing for people to rely on for emergency situations where they cannot meet everyday expenses.

"But you want to make it a last resort otherwise it does affect your long-term well-being."

He says financial capability programmes like TAAORC's Pacific Peoples Pathway to Homeownership, funded by the MPP, has garnered positive results.

The two-week course teaches financial skills and resilience building which is delivered to groups of 40 to allow more personalised support.

It has already been delivered to over 980 households since December 2021 with an overall aim of helping up to 12,000 Pacific households.

"Last year five of those households achieved their dream of home ownership.

"It's really integrated around families and communities and it's grounded in Pacific values.

"It's for anyone of Pacific descent who are 18 years old and reside permanently in Aotearoa New Zealand."

To apply:

You can contact the TAAORC via 0800 000 024 to find out more or register for the programme via their website:

Pathway to Home ownership workshop - Skills Update Training and Education Group

Watch the full interview on 531's Facebook page below: