Westpac New Zealand customers expect holiday spending to contribute to financial stress in 2026, with insurance and other annual bills among the main early-year costs competing for household budgets. In a survey of 1,087 Westpac NZ customers, 28% said their holiday season spending would “definitely” or “probably” create financial stress in the new year. A further 23% said it might do so, indicating that more than half of respondents see at least some risk that festive-period spending will tighten their finances in 2026.
In addition, 23% of those surveyed anticipate that extra costs in January and February would add pressure. Respondents cited annual bills, including insurance and tax, repayments for summer holiday and festive season expenses, and school or tertiary study supplies as key drivers of those costs. Nineteen per cent (19%) said they expected to rely on some form of debt – such as credit cards, overdrafts, revolving credit, or borrowing from family or friends – to fund major early‑year expenses.
The bank’s survey results suggest that broader cost-of-living pressures remain a dominant concern. According to Westpac, 73% of respondents reported being either extremely or moderately concerned about the cost of living, a level similar to that recorded in 2024. The data indicates that festive-period spending is adding to strain rather than replacing other pressures. Respondents’ expectations for early‑2026 stress were largely unchanged from the prior year: 23% anticipated January and February would be more stressful than last year, 72% expected about the same level of financial stress, and 5% expected less.
Separate research from Ipsos New Zealand has reported that around one in four adults finds it difficult to make ends meet, a proportion that has increased since 2022 and remained high over the past two years. Lower‑income households have recorded the largest rise in reported difficulty. Concerns about employment are also influencing spending decisions. Nearly half of respondents in the Ipsos research expressed concern about job security, and a majority expected unemployment to increase over the coming year. Among those worried about job loss, more than four in five said they had cut back on spending.
For insurance professionals, the Westpac findings intersect with wider signals about how premiums fit into household budgets. In the bank’s survey, 35% of respondents identified annual bills such as insurance and tax as one of their largest additional costs in January and February. Other significant items included summer holiday costs (25%), repayments of festive season or Christmas‑related debt (19%), and school or study supplies (14%).
Funding strategies for these obligations may influence policy retention and coverage levels. Sixty‑five per cent (65%) of respondents said they would meet major early‑year costs from regular income, 34% intended to use funds set aside for those expenses, 26% expected to draw on general savings, and 19% planned to use some form of debt. Consumer NZ data indicates that insurance has moved up the list of financial worries. Insurance is now the fourth‑ranked financial concern for New Zealanders, behind housing, groceries, and debt, having risen from sixth place in October 2024. Respondents pointed to premium increases across house, contents, vehicle, and health insurance as important contributors to financial strain. At the same time, more people reported distrust than trust in insurers.
The survey results point to a beginning‑of‑year period in which insurance premiums compete with other fixed or semi‑fixed costs, while some households are also managing holiday‑related debt and heightened cost‑of‑living pressures. For insurers and intermediaries, this environment may influence customer decisions on cover levels, excesses, and payment timing. The data suggests that how and when premiums are billed, and how those obligations are communicated alongside other January–February commitments, could affect lapse rates, down‑trades, and customer engagement across personal lines.
