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Average and Median New Zealand Net Worth by Age 2024 - How Do You Stack Up?

Our guide explains what net worth is, average (mean) and median net worth across all age groups, proven methods to build and increase net worth over your life, must-know facts and frequently asked questions.
Updated 30 July 2024
Summary:
  • MoneyHub publishes guides on the Average KiwiSaver Balance by Age and the Average NZ Salary by Age, but for many New Zealanders, Net Worth is the yardstick that enables them to know how they're really tracking in life.
  • Net Worth is what the FIRE (Financially Independent, Retire Early) community uses to determine whether they have a large enough piggy bank to exit the workforce and retire early.
  • While some New Zealanders can have an ultra-high income (e.g. $300,000+), it doesn't mean they're wealthy. This guide is meant to showcase the reality for many New Zealanders - and why it's dangerous to focus on income or faux spending/wealth rather than real wealth.
  • Know This: ​You can earn $250,000 and live a lavish lifestyle but still have next to nothing in your name ($0, or even negative net worth if you have debts). Income and spending are misleading – in our view, net worth tracks your financial journey.

Our guide, the first of its kind in New Zealand, covers:
Disclosures: 
  • Most of the statistics used for this guide have been sourced from Statistics New Zealand or analysis primarily derived from Statistics New Zealand (unless stated otherwise).
  • Our research team has attempted to extract insights from the most recent Net Worth data from Statistics New Zealand (conducted in 2021). If you find any issues, please contact our research team.
  • This guide offers the most up-to-date public information available. Stats NZ posts the updated Net Worth data every 3 years (usually nine months after the data has been compiled). For example, the June 2024 data snapshot will be published in March 2025). We will update this as and when this data becomes available.
  • Some of the data points referenced may have different methodologies and will either be in a survey or reported data and may need additional sense checking. 
  • Where possible, we suggest focusing on the median figures rather than average or mean figures as median statistics are more representative of the 'standard' New Zealander, rather than factoring in all the New Zealanders with ultra-high net worth that may skew the data.

Background Research: New Zealanders in the World's Top 1% Net Worth: Looking at the UBS Wealth Report 2024

The 2024 Global Wealth Report by UBS indicates a 4% increase in global wealth. Our observations specific to New Zealand include:
  • Wealth is defined as the value of financial and real assets, like housing, minus debt. 
  • On average wealth per adult, New Zealand ranked seventh with US$408,231, up around $20,000 from the previous year. On a median basis, New Zealand ranked fifth behind Luxembourg, Belgium, Australia, and Hong Kong, at US$202,525.
  • While not covered in the 2024 report, there were around 255,000 New Zealanders with wealth above US$1 million in 2022's report. Additionally, 2.05 million New Zealanders were in the top 10% of global wealth-holders, with the country's total wealth at US$1.4 trillion. To be in the world's top 10%, a wealth of US$137,333 was required, and US$1.081 million was needed for the top 1%.
  • Important: You can download the 2024 Global Wealth Report and receive updates, and as a background, Stuff.co.nz covered the 2022 report in this 2023 article.
Recent Study: UBS Wealth Report 2024
Insights from the above graphs:
  1. The 2024 study by UBS found that New Zealand ranks among the top 10 wealthiest countries in terms of average and median wealth (USD per adult). New Zealanders rank #7 for average wealth and #5 for median wealth.
  2. Other developed nations with double placements in the top 10 include Luxembourg, Switzerland, Hong Kong, Australia, Denmark, Canada, and Norway.  ​
Source: UBS Global Wealth Report 2024

MoneyHub Founder Christopher Walsh shares his views on net worth:

"Building wealth is a marathon, not a sprint. Patience and persistence are key. Wealth accumulation doesn't happen overnight and may start later than you would like, given the increased cost of living. However, it requires consistent effort, smart decisions, and, above all, time. Steadily building up assets and reducing liabilities is a proven way to create a solid financial future.

True financial independence comes not from earning more but from spending less. It's easy to get caught up in the pursuit of higher salaries, but the real power lies in managing our expenses and saving and investing diligently. I know there is a cost-of-living crisis, and it's not going away, so it's unhelpful to ignore how hard it is for many New Zealanders to get ahead. However, if you can consistently save and invest wisely, your net worth will grow significantly.

Understanding and regularly calculating your net worth is essential. It provides a clear picture of your financial situation, helping you track progress and make informed decisions. I suggest getting a budget app to help you visualise your money and set realistic financial goals, such as buying a house, saving for retirement, and/or paying off debt.

Consistency is key. No matter your age, achieving financial goals requires preparation and regular contributions to savings. Even if your savings fall short of averages, that's ok - just move forward by putting money aside. It's never too late to adopt good financial habits. The best time to start saving was yesterday; the second best is now. Times are tough, but if you can regularly put something aside, you'll grow your net worth".
Christopher Walsh
MoneyHub Founder

What is Net Worth?

Net worth is a critical measure of financial health, representing the total value of all assets owned minus the total value of all liabilities owed. Essentially, it’s a snapshot of what you own versus what you owe, providing a comprehensive overview of your financial situation. Understanding your net worth can offer valuable insights into your wealth and financial progress over time, helping you make informed decisions about your financial future.

How do I calculate net worth?
  • You need to start by listing all your assets; assets can include cash in your wallet, your bank balance, savings accounts, term deposits and anything else in cash. Investments, including shares and KiwiSaver are also part of your assets. Property is another significant component, encompassing real estate holdings like your home and any investment properties. Additionally, valuable personal property, such as cars, jewellery, collectables, and furniture, should be included. Other assets might consist of business interests and life insurance policies with cash value.
  • For example, if you have $10,000 in savings, $50,000 in investments, a home worth $800,000, and a car valued at $15,000, your total assets would amount to $875,000.

Next, you need to list all your liabilities. Liabilities are debts or financial obligations you owe, including mortgages, car loans, student loans, personal loans, and credit card debt. Any other debts should also be included in this list. 
  • For instance, if you have a mortgage balance of $500,000, a car loan of $5,000, and a credit card debt of $2,000, your total liabilities would be $507,000.

Calculating your net worth is straightforward once you've tallied your assets and liabilities. Subtract the total liabilities from the total assets. Using the example above, with total assets of $875,000 and total liabilities of $507,000, your net worth would be $368,000.

Know This:
  • Understanding and regularly calculating your net worth (say once a year or half a year) is essential because it provides a clear picture of your financial situation. It helps you track financial progress over time, showing whether your wealth is growing or shrinking. Our net worth calculator does this for you.
  • This knowledge is crucial for setting realistic financial goals, such as saving for retirement, buying a home, or paying off debt. Moreover, a clear understanding of your net worth can guide your spending, saving, and investing decisions, ensuring you make choices that enhance your financial well-being.​

Average and Median Net Worth Across All Age Groups

Know This First: The following sections present a detailed examination of average and median net worth across various age groups, the impact of education on net worth, and the distribution of wealth across different household compositions and regions. It's a lot of graphs, but we have included everything relevant to help you develop a full understanding of net worth. 
​Insights from New Zealand's median net worth, as shown in the below graph:
  1. Younger New Zealanders (aged 15-24, and 25-34) had the lowest median individual net worth, at $3,000 and $34,000, respectively, while those aged 65+ had the highest, at $424,000.
  2. Overall, there’s a steady upward march/net worth progression as New Zealanders age (although the “typical” 50th percentile (median) New Zealander doesn’t get anywhere “millionaire” status - defined as when one's net worth hits seven figures (NZD 1,000,000).  
Insights from the graph below:
  1. The mean/average numbers follow the same trajectory as the median numbers but are skewed higher (likely weighted by the ultra-wealthy individuals pulling up the averages).
  2. One interesting point to note is that the net worth of New Zealanders from the 55 - 64 age bracket to 65+ stays relatively flat when looking at the averages rather than the median (which continues to increase). This might be due to wealthier New Zealanders giving to charity or family/kids earlier than less wealthy New Zealanders (which would bring down the average net worth but not the median net worth).

Cross-sectional median personal net worth in New Zealand:

Insights from the below graph:
  1. In earlier snapshots of median personal net worth, male and female genders were roughly equal. 
  2. However, as of 2021, the gap between net worth/wealth between male and female genders is growing (from roughly equal in 2018 to a gap of over 10%).
  3. Both genders (excluding non-binary) have a personal median net worth above NZ $100,000.​
​Source: Stats NZ, Figure NZ

Median and Mean Household Assets, Liabilities and Net Worth

Source: Stats NZ
Insights from the above graphs:
  1. Household net worth has steadily increased since 2015, going into 2021.
  2. However, liabilities are also increasing alongside assets (suggesting that New Zealanders are equally growing their debts like student loans or mortgages alongside assets like housing, equities or term deposits.
  3. The mean (average) household net worth is over double that of the median household net worth (suggesting a right skew with a smaller percentage of New Zealanders that have disproportionately high wealth pulling the average up). 

Net worth by qualification - is education correlated to higher net worth?

​Insights from the above graph:
  1. Given the difficulty in defining the "other post-school" bucket, it's hard to draw much insight from this graph.
  2. Overall, there is likely a correlation between some form of study and higher salaries (e.g., New Zealanders with Level 5-6 diploma, Postgraduate/Honours, and Masters seem to have a higher individual net worth than those with no qualification, Level 1-3 certificate, or other secondary school education).
  3. Equally, the bachelor's degree is in line (if not lower) than the Level 4 certificate, potentially indicating that just doing a bachelor's degree alone is not sufficient to improve net worth. This would anecdotally line up with the logic that "fees free" and a huge increase in the number of people graduating from university with a bachelor's degree increase the supply of these grads and likely decrease the quality (either because they are more commoditised as a labour force or the university standards have dropped to accommodate more students). 

What Net Worth is Required to be in the Top 10% and Top 1% of New Zealanders?

​According to recent data from Stats NZ (2021) and Stuff (2022):
Net Worth Table
Top X% Net Worth Required (NZD)
50% (Median) $397,000
20% (Top Quintile) $1,024,000
10% (Top Decile) $2,025,000
1% $7,590,000
1% (for Individuals) $3,866,000
10% (global individuals) Around $230,000 NZD (US $138,346)
1% (global individuals) Around $1,900,000 NZD (US $1,147,000)
  • Inferring from the table above (assuming they are a single-person household where household = individual net worth), someone in the top 10% of NZ Household Net Worth (NZ$2.025 million) would be in the top 1% of all global Net Worth for individuals (NZ $1.9 million).

Wealth Ranges and Distribution

​Insights from the above graph:
  1. The most common household net worth range is $1 - 100,000 (over 22% of the 1,864 respondent households fall within this range).
  2. There are not very many households that are deeply in negative net worth territory (1.2% of households have $100,000 and less in net worth).
  3. Equally, 4.3% of the households surveyed had a negative net worth between $0 and -$100,000.
  4. Over 14% of households have a net worth of over $1.5 million (with some potentially in the tens of millions—but the Stats NZ data does not reveal such granular detail).

Inequality and wealth concentration

Insights from the above graphs:
  1. 50% of households held just over 93% of total wealth. 
  2. 50% of individuals held almost 98% of total wealth.
  3. The top 10% of households held over 51% of total wealth.
  4. The top 10% of individuals held over 58% of total wealth.
  5. The top 5% of households held around 37% of total wealth.
  6. The top 5% of individuals held over 43% of total wealth.
  7. The top 1% of households held just under 15% of total wealth.
  8. The top 1% of individuals held around 20% of total wealth.

Our View: Wealth is very concentrated (particularly looking at individuals rather than households).​

Individual net worth by ethnicity

Source: Stats NZ, BERL

​Insights from the above graph: Excluding other ethnic groups, Europeans have the highest individual net worth, followed by Asians, then Māori and Pacific peoples.

Household net worth (by composition of household)

Insights from the above graph:
  1. Couples without kids or dependants had the highest absolute net worth in the sample size.
  2. Couples with children only in their households had the second highest net worth.
  3. Single parents with children had the lowest net worth in the sample size.
  4. On the whole, couples seem to have a modestly higher household net worth than single-parent or person households.

Household net worth by household size

Insights from the above graph:
  1. Two-person households have the highest net worth compared to other household compositions.
  2. One person and five or more person households have effectively the joint lowest net worth out of the sample size. ​

Household net worth by region

Insights from the above graph:
  1. Auckland was the region with the highest reported net worth based on the sample size.
  2. Wellington (coupled with the rest of the South Island) had the joint second-highest net worth of each area/region.
  3. The north island (ex Auckland) had the lowest reported net worth. ​

Total Household Net Worth shows New Zealand Households Are Stabilising per Stats NZ 2024 data:

Insight from the above graph: 
  1. Huge spikes in net worth occurred during the back end of 2020 and into 2021, before taking a significant dip in 2022. 
  2. As of 2024, net worth has stabilised (and households seem to be taking the brunt of the OCR increases in stride). ​

Proven Methods to Build and Increase Net Worth in Each Decade of Your Life

In Your 20s: Building a Foundation:
  • During your 20s, focus on establishing a strong financial foundation. Aim to save around 20% of your annual income (net of taxes) and build an emergency fund that covers 3-6 months of living expenses. Prioritise paying off high-interest debts like credit cards to free up future income for savings and investments.
  • In your 20s, time is on your side, so starting a KiwiSaver account is a great idea. A good target is to have saved at least 0.5-1X your annual salary by the age of 30. This sets you on the right path for future financial stability.

In Your 30s: Growth Phase.
  • Your 30s are about accelerating your savings and investments. Try to increase your savings rate to 20% of your income and maintain an emergency fund covering 6-12 months of expenses. While we realise this is near-impossible in a time of record rents, supermarket costs and the general cost of living, it's an aim, not a requirement.
  • You can aim to save 1-2X your annual salary by age 35 and 2-3X by age 40 in your retirement accounts, including KiwiSaver.
  • To build a balanced portfolio, diversify your investments to include shares, term deposits, and real estate. Work on paying down any remaining debts, especially student loans (although if they're interest-free, then it may make sense not to pay them off immediately) and mortgages, to reduce financial liabilities.

In Your 40s: Your Peak Earning Years.
  • In your 40s, focus on maximising your earnings and savings. Aim to save 25% of your income and keep a robust emergency fund. By age 45, aim to have saved 3-4X your annual salary, and 4-6X by age 50. This is the time to maximise contributions to your KiwiSaver and other retirement accounts.
  • Focus on staying diversified, reducing or eliminating debt, particularly your mortgage, to free up more resources for savings and investments.

In Your 50s: Preparation for Retirement.
  • As you enter your 50s, the goal is to solidify your financial position in preparation for retirement. If possible, aim to save 30% or more of your income and maintain a strong emergency fund. By age 55, strive to have saved 6-8X your annual salary, increasing to 8-10X by age 60. 
  • Shift your investment strategy to preserve capital while still seeking moderate growth. Focus on becoming mortgage-free and eliminating any remaining debts to enter retirement without financial burdens.

In Your 60s: Transition to Retirement.
  • In your 60s, the focus shifts to securing your retirement. Maximise your savings and continue contributing to KiwiSaver while working. Maintain a liquid emergency fund to cover unexpected expenses. Aim to save 10- 12 times your annual salary by retirement age. 
  • Shift your investments towards more conservative options to preserve your wealth and generate steady income. Ideally, you should be debt-free or have minimal debt as you transition into retirement, ensuring financial peace of mind. Once you reach the age of 65, you'll be eligible for NZ Super.

Must-Know Facts about Net Worth by Age

  • Know This First: Net worth does not equal Cash Flow. Net worth measures the total value of an individual's assets minus liabilities, whereas cash flow refers to the amount of money transferred into and out of an individual's accounts over a specific period.
  • ​Net worth represents the overall wealth and financial health, including investments, properties, and other assets, while cash flow indicates the liquidity and ability to cover day-to-day expenses. A person can have a high net worth but still experience cash flow problems if their assets are not easily liquidated or if they have significant ongoing expenses.
  • Our extensive list of must-know facts below help to explain net worth in detail and explain how to make the best financial decisions.

Your SELF-WORTH is not your NET WORTH. Do not conflate the two

Life is more than numbers on a screen. Quality of life is not 100% tied to wealth or net worth. Don't wrap up your sense of self-worth in one number—life is so much more than net worth. It's quality time with family and relationships, prioritising experiences, taking care of your health, and doing what you love.

It will get better before it gets worse (economically and financially)

Many New Zealanders who purchased housing in and around 2021 at all-time highs may be nervous about comparing their 2024 net worth to the 2021 benchmarks. The majority of the typical New Zealand'ers net worth is locked up in illiquid housing, and they might be worried about current house valuations based on various comparison websites. The real estate market in 2024 is quite iced over with the RBNZ raising the OCR and keeping it high(which is putting pressure on mortgage holders).

Don’t be fooled by what you see on social media

It's all too easy to spend time on Instagram and feel depressed about your life. Whether people constantly travel, get married, or buy houses, they only post a small snapshot of the best things in their lives on social media. Remember that social media is likely not the reality of everyone's life for many New Zealanders, so don't conflate Instagram posts as a proxy for how wealthy someone is.

The best things in life are free

Things that New Zealanders take for granted that people in prior generations would struggle to get include: 
  • Longevity (most people in developed countries live to 80+)
  • Quality free medical care
  • Access to internet 
  • Access to knowledge/information
  • Entertainment (like YouTube and streaming services)
  • Email and instant messaging
  • Online video conferencing (Zoom, Skype, Google Meet, Microsoft Teams)
  • Social media
  • Free software
  • Quality infrastructure and public transportation
  • Accessible access to finance (and financial services generally)
  • Access to better health technology and medication​

Take the net worth figures with a grain of salt

Net worth can be extremely misleading (once things like inheritances, trust funds, or let-ups from mum and dad are factored in). Also note that Stats NZ uses survey data, which is often self-reported. In other words, the reported numbers and the actual net worth of typical New Zealanders may wildly differ. These numbers may be severely overinflated (or underinflated) based on the gap between reported and actual net worth. 
​
Also, be mindful that KiwiSaver and property ownership are cited as primary contributors to net worth in these statistics:
  • KiwiSaver fluctuates drastically depending on what equity and bond markets are doing (for instance, during COVID-19, sharemarkets were down 30% from their highs, then soared to all-time highs in 2021).
  • Property is often valued based on expected market values based on what other properties have sold for in similar areas (as property is illiquid, and you won't know how much it's worth until you sell it). Equally, the Council Valuations (CV) done by the New Zealand government are only refreshed every three years.    ​

Be careful of benchmarking 2024 numbers to 2021 high water marks.

Thanks to low Reserve Bank OCR and interest rates worldwide, 2021 is a high watermark for all asset classes. Given the most recent statistics, the New Zealand household net worth survey was undertaken in 2021 (when both equity and property markets were at all-time highs due to COVID-19 and near-zero interest rates). Therefore, comparing 2024's net worth to the high watermark of 2021's asset prices may not be proper or reasonable.

Be mindful that these are net worth bands - which vary widely, even within the band itself

Also, note that the net worth figures are broken down by bands (as wide as almost ten years). In other words, if you're looking at your "age range" but you're 25, know that the net worth number represented is for the entire age range (up to age 34 for example). The net worth of New Zealanders who are almost ten years older than you (who have had ten more years in the working world at the peak of their careers) will also be factored into this number. 

​If you were going to compare at all (which we’re not suggesting you do), you would ideally compare yourself to the median New Zealander that’s the same age as you. However, Stats NZ doesn’t break this data down.

For example, most 25-year-olds have significant student loans and very moderate incomes (likely less than six figures), which would negatively affect their net worth. Someone who's entering their mid-30s is likely to have paid off almost all (if not entirely) their student loans and will potentially have job hopped a few times to maximise their salary. These two people would technically fall under the same net worth band.

The example above shows why it's very difficult to benchmark the data from Statistics New Zealand (even within age bracket bands).

If possible, focus on the median and avoid using the mean (average) numbers

Statistics New Zealand refers to both the mean and median net worth numbers sampled. However, the mean net worth is likely skewed by very wealthy individuals, suggesting that the median net worth would present a different, possibly lower, picture. 

If you just use the mean (average) net worth number as a proxy, you might get misled about how wealthy (or not wealthy) the typical New Zealander is. Extremely high or low values do not skew median values and provide a better representation of typical net worth.

For example, if you had ten people who all had a net worth of $100,000 - your median and mean net worth would be $100,000. However, if you replaced one of those people with Jeff Bezos (currently worth over $200 billion as of 2024), the median would stay the same ($100,000), but the mean would jump to $21.5 billion. The other nine people are no richer or poorer than the prior scenario - but the data becomes skewed by the one rich individual (in this case - Jeff Bezos). 

If you had just taken the mean (average) value, you would assume all ten people must surely be super rich - but the truth (and supporting data) is far different than expected. 

Privilege comes in many forms - and it will often show up in the net worth data

Whether it's the luxury of living with parents and not paying rent or food costs (which can significantly increase savings and net worth by reducing living expenses) or getting access to generational wealth transfer, through to parents gifting a 20% house deposit on a $1.5 million Auckland house, family support can help young people accumulate wealth very fast from a very young age. However, this is not common and many New Zealanders get very little or nothing. ​

While it’s all too easy to blame others or your parents for not providing the same privileges that other peers your age get, know that there will almost certainly be people less privileged or fortunate than you. That is life; many times it's not fair.

Due to differing market conditions, comparing across age brackets may not be the best benchmark

Buying property early, especially before significant price increases (and especially when heavily leveraged through a small deposit or a large mortgage), can substantially boost net worth. For example, anyone who bought in the 1980s and '90s has had significant explosions in Net Worth, thanks to the tailwind of New Zealand's (and Auckland's, in particular) property market. 

Having said that, comparing your current net worth to different age brackets (especially older ones) may not be the best approximation of your future net worth - particularly because the future of the property market will look very different from the past. 

For instance, many people in the 35 - 44 age brackets may not have been able to buy property post-GFC in 2008/2009. Equally - those people buying property now when interest rates are near the lows (relative to the 15 - 20% interest rates of the 80s and 90s) are less likely to benefit from the tailwind of falling interest rates. 

Equally, young New Zealanders graduating now have it much tougher than prior generations. In particular - housing affordability is much worse than in previous cohorts and student debt balances are much higher than they used to be (with wages not keeping up with the broader market or inflation).

Some careers take a while to ramp up (and will be reflected in the net worth data)

Not all careers are created equal. Some careers have a much higher 'incubation period' that requires more years of training (and far more student loan debt) but have a much higher ceiling on income or better job security. In contrast, other roles are very quick off the mark and don't require much study but cap out much quicker. 

In other words, some lower-risk/reward careers have higher net worth in the short term but lower net worth in the long term, while higher-risk/reward careers have lower net worth in the short term but higher net worth in the long term.

For example, a tradie who spends two or three years at trade school or apprenticeship and starts out working on $80,000 a year will likely have a far higher net worth at age 30 than a doctor who spends seven years studying (and taking out lots of student loans), takes a travel gap year, and then starts as a house officer on $80,000 a year for two years before becoming a registrar at 30. 
​
However, looking at the career trajectories and net worth statistics at both of these careers, it’s likely the doctor will have a far higher income ceiling (as doctors that become consultants can make upwards of $300,000+) and overall much higher career earnings than a tradie in the long term. Equally - a tradie’s job is physically demanding and is unlikely to be able to sustain over 40/50 years into one’s 70s (but a doctor/consultant can share knowledge with the hospital into their 80s or 90s).

The career you pick will influence how ahead (or behind) you are relative to peers in your age bracket

For example, the tradie will likely have a higher net worth in the earlier age brackets (given the relatively short study period and relatively high income post-study) compared to the doctor (who will still be studying or deeply in negative net worth from student loan debt). 
​
In contrast, the tradie will likely have a lower net worth (but not always, given the increased value and demand for trades) in the later age brackets (given the income ceiling and shorter relative career compared to office workers) compared to the doctor (who has a much higher income ceiling and relatively longer career compared to the tradie).

Some families “gift” money to their family members for tax planning reasons

While some New Zealanders might have a significant amount of money gifted from their relatives or family, there are sometimes other reasons or ulterior motivations. If their parents live in different countries with wealth or estate taxes, the family may give money to their young adult children (living in New Zealand) earlier rather than later (which will show up as the child has a significantly higher net worth than the median or average). 

Statistics New Zealand has not disclosed the reason or rationale for the high net worth - only that it is attributable to this young New Zealander. In other words, there's usually more "behind the scenes" when it comes to New Zealanders with a high net worth. Other examples can be that it’s actually their family’s money that they’re “holding in their name until their parents request it back” (a common sentiment in other countries). 

New Zealanders reach their highest net worth much later than their highest earnings; their wealth keeps growing even after they retire

Statistics New Zealand data shows that some New Zealanders withhold from spending their money as they get older, especially in retirement (with net worth continuing to grow into one's 60s). In other words, people fail to spend the money they earn throughout their lives (or they realise they probably should have spent it earlier on in life when they had the health, desire, and time to do so).

While this rising net worth might partly be due to NZ Super payments starting at age 65 (given you’ll need to draw down less money if you have a consistent income through NZ Super), it’s also likely that many retirees have less of a desire (and far less of an ability) to spend and convert their money into quality experiences.

​Eventually, many elderly New Zealanders end up giving any unallocated or unspent money to their next of kin or to charity. Excluding money you want to give to family, friends or charity, the money allocated to "you" should be spent at the right time in your life. 
​
For New Zealanders younger than 80 or 70, it's important to consider the right time to earn money and the right time to burn that money to get the most out of it.​

Net worth past age 65 gets skewed (due to when people give money away and pass away)

While Statistics New Zealand doesn't break down net worth past age 65, it's common for the data on senior citizens to get skewed given that people start passing away more frequently from the 70s onwards. This, coupled with when inheritances are given out, or money is sent to the charity (usually when people are alive), also impacts reporting on the individual net worth with figures.

Net worth doesn’t move in a straight line up and to the right

Most New Zealanders may experience periods of flat net worth growth (even when working full-time jobs), and that's completely normal and okay. One suggestion is to look at longer-term timeframes to see whether you're progressing. For example, the net worth progression charts from Statistics New Zealand are always up and to the right, but you're seeing years (almost decades) of progress being made from one bar chart to the next. Remember that building wealth takes time - and it’s not a race.

Don't be disheartened if you're below your age bracket's income and net worth benchmarks

Just because you're above or below some of the median or average net worth figures above doesn't mean you're doing anything wrong. However, if you’re not where you want to be financially or in life, there are things you can do to try and increase your salary (like consider job hopping, taking on more responsibility to get promoted faster or switching careers entirely).

Compare yourself to you yesterday, not to others today

Measure your progress against your past self rather than comparing to others today. While knowing what others in similar situations earn can ensure you're not underpaid, everyone's financial journey is unique. If comparing yourself to others only brings anxiety and stress, focus on how you’ve improved over the years instead. We're all on vastly different paths, and continuous comparison with others often isn't meaningful. 

The best time to start saving is yesterday - the second best time is right now

Avoid getting caught up in comparisons, and remember that averages are just that – averages. Concentrating on your own goals and progress is more productive than constantly comparing yourself to others. The best time to start saving was yesterday - the second best is now. Don't delay saving. While enjoying the present is important, you must balance it with saving for the future.|
​
Important: Consistency is key. No matter your age, achieving financial goals requires preparation. If your savings fall short of averages, it might be because you’ve already invested in your dreams, which is a success in itself. It’s never too late to adopt good financial habits. Setting goals, separating savings from daily expenses, and regular contributions can help you exceed average savings more easily than expected.

Comparison with others is the thief of joy

Comparison often diminishes happiness. It's frequently said, but worth repeating: everyone is on a different journey. Don't be disheartened if you have less savings than your age cohort. Life unfolds uniquely for everyone. Stay focused on your journey, and avoid comparing yourself to others.

Frequently Asked Questions

When does Net Worth peak?

​Net worth typically peaks in the later stages of life, often around retirement age. For many New Zealanders, this occurs between the ages of 60 and 70, when they have accumulated the most assets and paid off significant portions of their debt, such as mortgages. Data shows that individuals in the 65+ age bracket often have the highest net worth due to a combination of property ownership, retirement savings, and reduced liabilities.

What is the great wealth transfer? What does this mean for New Zealand’s future?

The great wealth transfer refers to the significant shift of wealth from the baby boomer generation to millennials and Gen Z as the older generation passes on their assets through inheritance. In New Zealand, this transfer is expected to involve approximately $1.11 trillion over the next 20 years. 

This shift will likely impact various sectors, including the job market, real estate, and the economy. If the wealth is concentrated among a small number of heirs, it may exacerbate existing inequalities, potentially leading to calls for policy changes such as inheritance taxes or adjustments to the tax system to address the disparities.

Why do New Zealanders have such a low net worth?

Several factors contribute to many New Zealanders' relatively low net worth, including high living costs, significant debt levels (particularly student loans and mortgages), and low savings rates. 

Additionally, the high cost of housing means that a substantial portion of wealth is tied up in property, which can limit liquidity and the ability to diversify investments. Economic factors such as wage stagnation and rising expenses also play a role, making it challenging for many New Zealanders to accumulate substantial savings.

However, remember that net worth is relative. What’s low to one person may be extremely high relative to another – what’s important is figuring out which benchmark (e.g. the neighbour next to you or the richest person on Instagram) you’re using and whether that’s appropriate.​

What variations of Net Worth are there?

Net worth can be categorised in several ways to provide a more nuanced view of an individual's financial status:
  1. Liquid Net Worth includes only assets that can be quickly converted into cash, such as savings accounts, shares, and bonds, minus liabilities.
  2. Non-Liquid Net Worth includes assets not easily converted to cash, such as real estate, retirement accounts, and business interests.
  3. Adjusted Net Worth considers potential taxes and fees associated with liquidating assets.
  4. Tangible Net Worth excludes intangible assets like intellectual property and focuses on physical assets like real estate and vehicles.
  5. Personal vs Business Net Worth is for individuals with significant business interests, separating personal net worth from business net worth can provide clearer insight into their financial health.
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