Beneficiaries spend 8 percent more than they receive each week - report
A new report from Fincap reveals that New Zealand benefit recipients are spending 8 percent more than their weekly income, leading to record levels of debt. Financial mentors report that clients are increasingly struggling to afford basic essentials like food and housing.
Why it matters
The data underscores a deepening cost-of-living crisis and the inadequacy of current welfare support for vulnerable populations.
Beneficiaries are increasingly struggling to make ends meet, financial mentors say, and are spending more than they receive in benefits each week at a record rate.
Many are turning to KiwiSaver withdrawals as a short-term solution.
Fincap - a network that supports financial mentors and the MoneyTalks helpline - has released its latest Voices report. It shows that mentors dealt with 30,654 cases in 2025. The majority were people who relied solely on benefits.
Total client debt reached $933 million, up 121 percent in five years. Clients were spending a median $107 for every $100 they earned, a record deficit.
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