Having a degree, owning your own home and being in full-time work are not protection from financial hardship, new Otago University research suggests.
The University of Otago has released its latest New Zealand Consumer Lifestyles report, which is updated every five years.
It said 27% of respondents could this year be described as "financial strugglers". This was the largest of any group in the survey, and bigger than the 2020 report, when it was 16.5% of the population.
These people were, on average, 43 years old, earning $51,000 to $75,000, often with a university education, paying a mortgage and engaged in full-time employment.
"This suggests that these economic and personal factors do not necessarily protect individuals from experiencing financial hardship," the report said.
They reported comparatively low satisfaction with their standard of living, health, achievements and future security.
They were also less likely to describe their lives as purposeful, their relationships as rewarding or themselves as engaged with daily life.
People who were struggling were concerned about inequality and believed the gap between rich and poor was growing.
Associate professor Leah Watkins said financial pressure was affecting a much broader group of New Zealanders now.
"Our financial strugglers segment has grown … the financial impact of the cost of living crisis is affecting a lot more people ... the segment, in terms of income, would be classed as middle income and many had university degrees, many had mortgages. It's not perhaps what we picture as those that would be financially struggling."
She said people were asked whether they thought things would improve but were not optimistic.
"A large percentage of people thought that this cost of living crisis was likely to continue. That has impacts on the other measures we are seeing. The number of people thinking they had to leave New Zealand to get ahead was significantly higher than it was in 2020. You can see how that financial insecurity is not just affecting what people buy but it's affecting their outlook, their lifestyles in broader ways."
Another 11% were "aspirational materialists" with a strong desire for achievement and upward mobility. Another 13% were "contented traditionalists" who were older on average with high personal wellbeing, optimism, traditional values and a positive view of the country.
Sixteen percent were "ethical pragmatists" who were values-driven and financially stable so they could prioritise ethical living and social responsibility.
Ten percent were described as disengaged drifters.
The researchers found 40% of all respondents said they had struggled to buy essentials, 52% went without something to buy essentials, 48% said economic uncertainty prevented them making purchases they would otherwise have made and 48% thought they needed to leave New Zealand to get ahead, which was up from 29% in 2020.
Watkins said there was a connection between frugality and sustainability that had come through in the report. "Durability and reuse, those were the sort of behaviours we were seeing people saying was important to them."
There was also a key theme around the digital environment, she said. "That's just ingrained in people's every day. Consumers were saying what remains important to them is personal recommendations from friends and family. It wasn't influencer culture and it wasn't celebrity endorsement, they were seeking information from tried and trusted personal sources."
The report said the growth of price-led global platforms such as Temu, Amazon, and eBay had intensified price transparency and enabled consumers to compare products across multiple sellers with minimal effort.
"As a result, consumers increasingly expect low prices, seamless purchasing experiences, rapid fulfilment, and personalised service. At the same time, advances in artificial intelligence are accelerating these trends through AI-driven recommendation systems, dynamic pricing, automated customer service, predictive logistics, and personalised marketing. However, there are also signs of consumer resistance, reflecting low levels of trust and growing scepticism about the adoption of these technologies."
