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Many young New Zealanders are swapping saving for a home with travelling, while their parents or grandparents are considering leaving their savings behind for them, Southern Cross Travel Insurance (SCTI) research has found.

The Future of Travel study, which surveyed 1,002 New Zealanders nationwide in November 2024, has shown the cost-of-living crunch is hitting home in Aotearoa with a clear generational divide.

Of all survey participants aged 18-44, 55% said buying a house now feels out of their reach, so they are spending their money on travel and other experiences.

Meanwhile 65% of New Zealand parents aged 45 and above said while they would like to travel more, they are instead using their savings to help their children and grandkids get ahead. They are either already financially supporting or planning on leaving their savings behind for their offspring.

This is affecting Aucklanders aged 45 and above more with 54% of those surveyed spending less on travel to save money compared to 39% of the participants in the rest of the North Island.

SCTI Chief Executive Officer Jo McCauley says the results of the study were startling.

“Young people have always wanted to travel – I know I did, but I also knew I could travel and hopefully still buy a house one day.”

“Our research indicates many young New Zealanders now sadly believe they will never be able to buy a house. So, instead of saving for a home, they’re opting to travel, with a family member hopefully helping down the track.”

Fortunately, these New Zealanders continue to see the value of travel insurance to protect their travel investment. Nearly 80% of the survey participants aged 18-44 agreed travel insurance was particularly important for international travel.

“This is regardless of whether it’s a beach holiday to relax, a road trip to explore, or an authentic travel experience to immerse themselves in a new culture or eat new and exciting foods,” says McCauley.

These three types of holidays were also the most popular with survey participants across all age groups intending to travel in the next 12 months.

The SCTI team deals with everything from Bali belly to dog bites in Spain, and trips, falls, flu, and strokes all around the world.

With SCTI on-call with 24/7 support, McCauley says SCTI has helped thousands of New Zealanders in some very challenging situations.

“Fender benders thanks to kangaroos, travel plans thwarted by badly twisted ankles, strokes, or an injury due to big waves or a knock to the head can all result in high costs for New Zealanders.”

“Air ambulance travel home has, at times, run into several hundreds of thousand dollars per case over the last 12 months,” she says. “It’s highly unlikely even the wealthiest of travellers would be able to withstand that sort of urgent expenditure, let alone manage the logistics.”

"That’s where expert advice from a team like ours is worth its weight in gold.”

Research highlights:

• Participants in the study were asked if they agreed with statements including: “Buying a house is out of reach for me so I’m spending more on travel and other experiences to live my best life.”
• Over half (55%) of New Zealanders aged 18-44 agree that buying a home is out of reach for them, so they are spending more on travel and other experiences, including one in five (21%) who strongly agreed with the statement.
• Likelihood of agreeing to the statement:
  • Gen Z are more likely than Millennials (64% compared to 50%)
  • Unmarried more likely than those married (65% compared to 47%)
  • Auckland residents more likely than other North Island residents (54% compared to 39%)
• Nearly half of New Zealand parents aged 45 years and above agree that they are spending less on travel than they would like to, to ensure they leave some inheritance for their children/grandchildren to be able to afford a home.
• Over two in five of these New Zealanders agree they have already supported their children/grandchildren financially in helping them get established or buy a home, and this has left them with less money for travel.
• Gen X are more likely than Baby Boomers (54% compared to 36%), as are Auckland residents more likely than other North Island residents (54% compared to 39%) to agree that they are spending less on travel than they would like to, to make sure they leave some inheritance for their children/grandchildren to be able to buy a home.