Latest news with #NewZealanders
Scoop
21 minutes ago
- General
- Scoop
Charities See Alarming Levels Of Poverty As Families Struggle
, Journalist There are a dozen people in the Latu household in the Auckland suburb of Mangere, but not enough beds for everyone. Three of Unaloto Latu's children have to sleep on couches in the living room. "Those three big chairs over here, our younger children sleep here... we know that sometimes it's hard for them but they have no choice." She and her husband have eight children aged between six and 18, and two relatives staying. Her husband has been off work with a knee injury for about three years and their household income, reliant on the benefit, is always stretched. They are not alone - social services said they are seeing an alarming level of poverty as families struggle with the cost of living. Four agencies RNZ spoke to said they regularly hear of families sleeping in one room and turning off the power during the day as they try to stay warm and pay their electricity bills. Charities - including the city missions, Variety, Kids Can and Family Works - are running winter appeals to help support families facing hardship. Latu sells her homemade cakes to help pay for eggs and milk for her family - but it is not enough. "Kids can go without milk, meat and bathroom stuff, cleaning stuff. Sometimes they need clothes and shoes, broken, husband can fix it he says he can get another two weeks from that." The power and internet bills are paid but Latu said dinner is sometimes just rice - her children's schools are part of the government lunch programme. "Sometimes if we have, we have. If not, they come [home] and just go in their room," she said. "It's crazy right now and it looks like everything in the shop is going up each before i can buy six [bottles] milk a week for our kids but now two." Latu said she sometimes struggles to remain positive. "It is so hard but I always say to my friends and family I don't want to sit down and focus on that side, because I'm a very emotional person I'm going to cry the whole day not doing anything thinking of those things. I try to keep moving forward." Latu said she is grateful to Variety for sponsoring her children, meaning they each receive $50 a month as a contribution to household costs. Stats NZ figures show electricity costs have gone up almost 9 percent since June last year. Petrol has gone up 15.5 percent over the same period. Consumer NZ's annual energy retailer survey found seven percent of New Zealanders have had to take out loans to pay their power bills - unchanged since last year. Chief executive Jon Duffy said the number of people concerned about the cost of electricity has jumped 10 percent in the last year. "These financial concerns have led us into a dire situation where 11 percent of people are underheating their homes." Duffy said the underlying market structure needs an urgent overhaul in order to slow down the growing number of New Zealanders experiencing energy hardship. This week, the Electricity Authority announced it would force big electricity retailers to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. It is changing sector rules to require retailers with more than five-percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the Authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. Presbyterian Support Northern general manager of social services Grenville Hendricks said this winter is worse for those on the breadline. The organisation is helping 800 fewer families after its government funding was cut by $1.5 million last year. "Agencies are struggling to keep their services running, let alone try and support people coming in," he said. "It's also a challenge when there's been issues around benefit payments, there's been reductions in the numbers of available social housing." Hendricks said that all contributed to people struggling to pay their bills, including power. "People are trying to manage as best they can, but given all the other circumstances that are currently happening in New Zealand with the cost of living, unemployment, reduction in social services, it means that actually the power challenge becomes exacerbated." He said they have heard of families sleeping in one room and children sharing beds to keep warm, and that the health of those not sleeping in beds or in damp mouldy houses was suffering. Zero Hunger Collective executive officer Tric Malcolm said she is hearing examples across the country of families struggling to pay for basics. "What is normal now, most people wouldn't have even dreamed of several years ago." She said for the first time in almost a decade they were hearing stories of families across the country struggling to keep their power on this winter. "I haven't heard these stories since the global financial crisis. Families are putting the heating on in one room and sleeping in that one room so that they can save energy," Malcolm said. "It's those moments that cause me worry and make me feel sad because people aren't able to access good dry, warm homes because they don't have enough funds in their household income." She said people then reduce the amount that they eat. Auckland City Missioner Helen Robinson said its services are experiencing increased demand and people would often cover their rent and utilities before buying food. "People are making terrible, terrible choices. Do I send kids to school, do I have the power on? Do I pay for the washing machine to be fixed, do I have the power on? Do I get food?" she said. "What we know is that the demand for food, so therefore the inadequacy of people's weekly income, is significantly increasing, so much so that we can't meet the need and I am deeply distressed to acknowledge that." Variety sponsors about 10,000 children and chief executive Susan Glasgow said the wait list has more than 3000 children living in material deprivation. "Unfortunately these are children all throughout New Zealand who are living in material deprivation, in cold, damp homes, sleeping on the floor, not having enough school uniforms to go around all the children in a household, they're living in really tough times." Glasgow said they hear from families regularly who are struggling to afford to heat their homes, and they often sleep in one room sometimes with the oven on for warmth. "New Zealand is teetering on the brink. I think if we don't take some pretty severe steps very soon we're going to see more children plunged into poverty and the long term outcomes for New Zealand are going to be dire," she said. "We want a healthy, vibrant group of young people who can contribute to our economy, who are well educated, who can support us in our dotage. You know, it's just good for New Zealand to invest, and it's not about charity, it's about investment in our future as a country." Unaloto Latu dreams of a bright future for her children and encourages them to help others. "Our hope for our children, we always teach them to go to school and study hard so you can get a job that will give you what you need." And when they have grown up, Latu has dreams of her own. "For myself, my hope and dream is when my kids are all in good places I want to travel around the world."
Scoop
21 minutes ago
- Business
- Scoop
‘Dramatic Shift' That Could Leave KiwiSaver Members Better Off
Article – RNZ The proportion of KiwiSaver in funds with high volatility has quadrupled in three years. , Money Correspondent A 'dramatic' shift of KiwiSaver investments into riskier funds should make New Zealanders better off in the long run, if past trends hold true. The Financial Markets Authority (FMA) released research this week noting the significant shift in risk of KiwiSaver investments. The proportion of KiwiSaver in funds that are risk category five, with high volatility, has quadrupled from 10 percent in 2021 to more than 40 percent in 2024. Riskier funds can be expected to be more volatile but over the long term should produce better results. They are generally recommended for investors who still have a significant period of time until they need to access their investments. Morningstar data shows that aggressive funds have returned 10.89 percent a year over five years, and 9.34 percent over 10 years. That is compared to 3.07 percent a year over 10 years for conservative funds, 4.47 percent for moderate funds, 6.18 percent for balanced and 7.68 percent for growth. Data director Greg Bunkall said cash investments' returns had lagged the rate of inflation over that time. The FMA said the proportion of KiwiSaver investments in lower risk funds dropped from 30 percent to 10 percent over the same 2021-to-2025 period. Part of this was due to the change to default funds, which now require them to be balanced. But it said there were other factors at play, too. 'In the period prior to the Covid-19 global pandemic, interest rates were historically low, and inflation was low and stable. As a result, many fixed-income assets provided low returns. On the other hand, stock markets have performed very well in most years since 2017, and the few periods of weakness quickly reversed. 'The strong performance and relative stability of stock markets may have therefore made higher-risk investments more attractive to investors. The persistence of this situation over several years may have contributed to the observed shift in preference for higher-risk investments, illustrating adaptive expectations among investors.' It said market performance could also have affected the risk rating of funds. Spikes of volatility in 2020 and earlier this year affect funds' performance history. A number of providers have recently launched 'high growth' funds that invest almost solely in equities. FMA director of markets, investors and reporting John Horner said the FMA was not necessarily implying that people were in the wrong fund or that providers were advising members towards higher-risk funds. 'The observed increase in the risk categorisation of KiwiSaver funds appears to reflect a combination of factors including policy settings, investor behaviour, and market volatility. 'KiwiSaver is a long-term savings regime for retirement, and for most long term investments a higher risk strategy will be appropriate. 'We note that as KiwiSaver has been in existence for a while and become more mature there are more options available, including higher risk options, and there is also more material available to allow investors to educate or inform themselves about risk vs reward.' Fisher Funds general manager of KiwiSaver David Boyle said the increase in investments in riskier funds was a good thing for investors wanting to grow retirement savings over the long term. He said consumers knew more about the role of growth assets in a long-term savings scheme like KiwiSaver. Fund mangers were responding to consumer interest and providing education on the risks and benefits of different fund types. Investors had experienced the Covid downturn and seen the recovery. 'The advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum.' He said members still had choice and there were many lower-risk and savings options available. Booster chief executive Di Papadopoulos agreed New Zealanders were becoming more sophisticated in assessing their time horizons and figuring out if they could handle more risk to target higher returns. 'It appears people are moving to higher risk funds that align with them not needing their KiwiSaver money for retirement anytime soon,' she said. 'At Booster, we have seen the benefit of these decisions. Moving from a balanced fund to a growth fund increases projected balances at retirement significantly. 'A key factor is how soon or long in the future your might need to access your KiwiSaver, such as if you want to use it to buy your first home, or for your retirement. 'If you're unsure about whether you are in the right fund it's a good idea to check in with a financial adviser.' How much difference might your outlook be? Based on Sorted's retirement calculator… A 20-year-old joining KiwiSaver now with no investment, earning $60,000 and contributing 4 percent of their salary plus an employer's contribution of 4 percent could expect to have at 65: $381,354 in a balanced fund $477,814 in a growth fund $606,456 in an aggressive fund This accounts for inflation.
Scoop
44 minutes ago
- Business
- Scoop
‘Dramatic Shift' That Could Leave KiwiSaver Members Better Off
The proportion of KiwiSaver in funds with high volatility has quadrupled in three years. A 'dramatic' shift of KiwiSaver investments into riskier funds should make New Zealanders better off in the long run, if past trends hold true. The Financial Markets Authority (FMA) released research this week noting the significant shift in risk of KiwiSaver investments. The proportion of KiwiSaver in funds that are risk category five, with high volatility, has quadrupled from 10 percent in 2021 to more than 40 percent in 2024. Riskier funds can be expected to be more volatile but over the long term should produce better results. They are generally recommended for investors who still have a significant period of time until they need to access their investments. Morningstar data shows that aggressive funds have returned 10.89 percent a year over five years, and 9.34 percent over 10 years. That is compared to 3.07 percent a year over 10 years for conservative funds, 4.47 percent for moderate funds, 6.18 percent for balanced and 7.68 percent for growth. Data director Greg Bunkall said cash investments' returns had lagged the rate of inflation over that time. The FMA said the proportion of KiwiSaver investments in lower risk funds dropped from 30 percent to 10 percent over the same 2021-to-2025 period. Part of this was due to the change to default funds, which now require them to be balanced. But it said there were other factors at play, too. 'In the period prior to the Covid-19 global pandemic, interest rates were historically low, and inflation was low and stable. As a result, many fixed-income assets provided low returns. On the other hand, stock markets have performed very well in most years since 2017, and the few periods of weakness quickly reversed. 'The strong performance and relative stability of stock markets may have therefore made higher-risk investments more attractive to investors. The persistence of this situation over several years may have contributed to the observed shift in preference for higher-risk investments, illustrating adaptive expectations among investors.' It said market performance could also have affected the risk rating of funds. Spikes of volatility in 2020 and earlier this year affect funds' performance history. A number of providers have recently launched 'high growth' funds that invest almost solely in equities. FMA director of markets, investors and reporting John Horner said the FMA was not necessarily implying that people were in the wrong fund or that providers were advising members towards higher-risk funds. 'The observed increase in the risk categorisation of KiwiSaver funds appears to reflect a combination of factors including policy settings, investor behaviour, and market volatility. 'KiwiSaver is a long-term savings regime for retirement, and for most long term investments a higher risk strategy will be appropriate. 'We note that as KiwiSaver has been in existence for a while and become more mature there are more options available, including higher risk options, and there is also more material available to allow investors to educate or inform themselves about risk vs reward.' Fisher Funds general manager of KiwiSaver David Boyle said the increase in investments in riskier funds was a good thing for investors wanting to grow retirement savings over the long term. He said consumers knew more about the role of growth assets in a long-term savings scheme like KiwiSaver. Fund mangers were responding to consumer interest and providing education on the risks and benefits of different fund types. Investors had experienced the Covid downturn and seen the recovery. 'The advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum.' He said members still had choice and there were many lower-risk and savings options available. Booster chief executive Di Papadopoulos agreed New Zealanders were becoming more sophisticated in assessing their time horizons and figuring out if they could handle more risk to target higher returns. 'It appears people are moving to higher risk funds that align with them not needing their KiwiSaver money for retirement anytime soon,' she said. 'At Booster, we have seen the benefit of these decisions. Moving from a balanced fund to a growth fund increases projected balances at retirement significantly. 'A key factor is how soon or long in the future your might need to access your KiwiSaver, such as if you want to use it to buy your first home, or for your retirement. 'If you're unsure about whether you are in the right fund it's a good idea to check in with a financial adviser.' How much difference might your outlook be? Based on Sorted's retirement calculator… A 20-year-old joining KiwiSaver now with no investment, earning $60,000 and contributing 4 percent of their salary plus an employer's contribution of 4 percent could expect to have at 65: $381,354 in a balanced fund $477,814 in a growth fund $606,456 in an aggressive fund This accounts for inflation.
Scoop
an hour ago
- Business
- Scoop
'Dramatic Shift' That Could Leave KiwiSaver Members Better Off
A "dramatic" shift of KiwiSaver investments into riskier funds should make New Zealanders better off in the long run, if past trends hold true. The Financial Markets Authority (FMA) released research this week noting the significant shift in risk of KiwiSaver investments. The proportion of KiwiSaver in funds that are risk category five, with high volatility, has quadrupled from 10 percent in 2021 to more than 40 percent in 2024. Riskier funds can be expected to be more volatile but over the long term should produce better results. They are generally recommended for investors who still have a significant period of time until they need to access their investments. Morningstar data shows that aggressive funds have returned 10.89 percent a year over five years, and 9.34 percent over 10 years. That is compared to 3.07 percent a year over 10 years for conservative funds, 4.47 percent for moderate funds, 6.18 percent for balanced and 7.68 percent for growth. Data director Greg Bunkall said cash investments' returns had lagged the rate of inflation over that time. The FMA said the proportion of KiwiSaver investments in lower risk funds dropped from 30 percent to 10 percent over the same 2021-to-2025 period. Part of this was due to the change to default funds, which now require them to be balanced. But it said there were other factors at play, too. "In the period prior to the Covid-19 global pandemic, interest rates were historically low, and inflation was low and stable. As a result, many fixed-income assets provided low returns. On the other hand, stock markets have performed very well in most years since 2017, and the few periods of weakness quickly reversed. "The strong performance and relative stability of stock markets may have therefore made higher-risk investments more attractive to investors. The persistence of this situation over several years may have contributed to the observed shift in preference for higher-risk investments, illustrating adaptive expectations among investors." It said market performance could also have affected the risk rating of funds. Spikes of volatility in 2020 and earlier this year affect funds' performance history. A number of providers have recently launched "high growth" funds that invest almost solely in equities. FMA director of markets, investors and reporting John Horner said the FMA was not necessarily implying that people were in the wrong fund or that providers were advising members towards higher-risk funds. "The observed increase in the risk categorisation of KiwiSaver funds appears to reflect a combination of factors including policy settings, investor behaviour, and market volatility. "KiwiSaver is a long-term savings regime for retirement, and for most long term investments a higher risk strategy will be appropriate. "We note that as KiwiSaver has been in existence for a while and become more mature there are more options available, including higher risk options, and there is also more material available to allow investors to educate or inform themselves about risk vs reward." Fisher Funds general manager of KiwiSaver David Boyle said the increase in investments in riskier funds was a good thing for investors wanting to grow retirement savings over the long term. He said consumers knew more about the role of growth assets in a long-term savings scheme like KiwiSaver. Fund mangers were responding to consumer interest and providing education on the risks and benefits of different fund types. Investors had experienced the Covid downturn and seen the recovery. "The advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum." He said members still had choice and there were many lower-risk and savings options available. Booster chief executive Di Papadopoulos agreed New Zealanders were becoming more sophisticated in assessing their time horizons and figuring out if they could handle more risk to target higher returns. "It appears people are moving to higher risk funds that align with them not needing their KiwiSaver money for retirement anytime soon," she said. "At Booster, we have seen the benefit of these decisions. Moving from a balanced fund to a growth fund increases projected balances at retirement significantly. "A key factor is how soon or long in the future your might need to access your KiwiSaver, such as if you want to use it to buy your first home, or for your retirement. "If you're unsure about whether you are in the right fund it's a good idea to check in with a financial adviser." How much difference might your outlook be? Based on Sorted's retirement calculator… A 20-year-old joining KiwiSaver now with no investment, earning $60,000 and contributing 4 percent of their salary plus an employer's contribution of 4 percent could expect to have at 65: $381,354 in a balanced fund $477,814 in a growth fund $606,456 in an aggressive fund This accounts for inflation.
NZ Herald
2 hours ago
- Business
- NZ Herald
Carter Holt Harvey proposes 5-7% timber price rises in October but biggest builder hits back
Ellie and Grant Porteous of G.J. Gardner Homes own the master franchise for the national house-building business via their Deacon Holdings. Photo / Grant Porteous He said the rise was entirely justifiable due to input cost increases. He cited labour costs, but other factors too. Porteous was talking to Herald NOW host Ryan Bridge today about house construction costs and new home prices. 'Despite this price stability, we're pushing back on some of the supply chains. We do have some comfortable duopolies in supply that are wanting to put prices up and, I'll be honest, one of those is Carter Holt Harvey with timber, and we're saying 'no'. 'The consumer can't sustain that at this moment. We don't see that your input costs have increased. You need to hold your prices for the good of New Zealanders and our industry at the time.' Carter Holt Harvey proposes timber price rises. Asked what response came from Carter Holt Harvey, Porteous said his business was awaiting that. 'It's a live debate and negotiation, but I think all builders need to have the confidence to be able to challenge any suppliers. What are these input costs that have gone up?' Porteous cited the housing downturn as having an effect on businesses like his. 'You'll never build cheaper than you will today,' he said, referring to the house sales downturn and land prices not rising at the levels they had been. 'The cost of building a home isn't our supply chain or manufacturers. It's more bureaucracy, red tape, councils, and honestly, MBIE [Ministry of Business, Innovation and Employment] at times over-reaching with the building code.' Staff at the national chain of Carter's retail outlets are telling builders of the planned price rises. The directive has come from the head office. Rotorua-headquartered Red Stag Timber is the other dominant timber supplier in New Zealand. Denver Simpson, Carter Holt Harvey's general counsel and company secretary, said he had no comment on the timber price rises. Rotorua-headquartered Red Stag Timber is the other dominant force in the sector in New Zealand. Red Stag says it employs about 300 staff and has an annual revenue of more than $220 million. It was established in 2003 to operate the Waipā Mill, in Waikato, which was founded by the Government in 1939 and then privatised in 1996. Carter Holt Harvey is privately owned by Rank Group, owned by one of the country's wealthiest men, Graeme Hart. Graeme Hart's Rank owns Carter Holt Harvey. Photo / Getty Images CoreLogic's Cordell Construction Cost Index out this month showed a growth rate of 0.6% for the three months to June, for an annual rate of 2.7%, the strongest since the third quarter of 2023. At the peak of the pandemic, building costs surged 10.4% and the long-term average was 4.2%. Spare capacity had since increased in the sector as the number of houses being built fell sharply from more than 50,000 to around 33,000 annually. The report showed varying price moves among key materials, with weatherboard 6% higher but decking timber and ceiling insulation 1% cheaper. The index is based on the cost of building a standard single-storey, three-bedroom house with two bathrooms, in brick and tile. Anne Gibson has been the Herald's property editor for 25 years, written books and covered property extensively here and overseas.
