In this thought-provoking episode of Economy Made Simple, Simplicity Chief Economist Shamubeel Eaqub is joined by Liv to help unpack the very important but complex topic of social cohesion. They discuss what it means, why it’s under pressure, and how it underpins everything from economic stability to effective policymaking in Aotearoa. Drawing on global trends and New Zealand-specific data, Shamubeel explores how growing inequality and distrust are slowly eroding the social glue that helps society function and progress. This episode covers:

• What social cohesion actually is, and how it differs from political or social uniformity
• How rising inequality, entrenched poverty, and declining trust in institutions are undermining cohesion
• Real-world examples from the US, UK, and NZ that show what happens when cohesion breaks down
• The difference between levels of social cohesion in Australia and New Zealand (you might be surprised!)
• Why a more united, cohesive society is essential to make big, future-focused decisions (like retirement reform and climate action)
• How KiwiSaver – if evolved thoughtfully – could support both retirement wellbeing and intergenerational fairness

This episode invites listeners to think more deeply about how social division affects not just politics, but everyday life – and what it will take to protect and rebuild the collective trust we're going to need to move forward. Shamubeel reminds us that New Zealand society isn’t broken, but the cracks are starting to show and need to be addressed. If we can strengthen our sense of shared purpose and empathy, we’ll be better equipped to tackle the big challenges ahead.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.