The Retirement Commission has released an analysis on the current life conditions for New Zealand's retired population.
A comprehensive analysis by the Retirement Commission of what life looks like for retirees in New Zealand has revealed many are missing out on medical appointments and social activities and radically changing their shopping habits to manage the cost-of-living challenges.
Te Ara Ahunga Ora Retirement Commission conducted qualitative and quantitative research with more than 1450 New Zealanders aged 65 and over.
The research found that 37 percent aged 65 plus say that their financial situation has worsened over the last two years. Increasing ‘cost-of-living’ pressures have also caused 46 percent of participants to say they have had to reduce social interactions or activities important to them, 28 percent now buy less food and 26 percent are putting off medical treatment.
Retirement Commission Research Lead Dr Jo Gamble said the findings highlight how tough some older New Zealanders have found the last few years and the precarious situation people face if they’re not mortgage-free, with additional sources of income.
“We can see that those who are renting, or who have experienced life shocks after 50 or have disabilities or long-term health conditions are finding things the toughest. These groups typically have fewer financial assets and are therefore less likely to be financially resilient,” said Dr Gamble.
“The findings illustrate the significant financial buffer being mortgage-free provides compared to those renting. In addition, people with investments and/or KiwiSaver were nearly twice as likely to feel their financial situation was comfortable compared to those without.”
For people on low incomes, completely reliant on NZ Super, the change in economic situation over the past two years has meant more than just tightening the belt, moving instead into day-to-day survival.
Rent was nearing unaffordable for one research participant, who said their rent had gone up twice in the past two years by $60.
“And the house – there’s a lot of stuff wrong with it, like it hasn’t been insulated. I’m too scared to complain. Always think that if I don't have anything to eat, at least no one would know because I live on my own,” they said.
For people on middle incomes, belt-tightening had generally been sufficient but there was growing unease about when things would return to normal since they were eroding their security/nest egg sooner than they planned to.
This research further highlighted the reliance people have on NZ Super, with 39 percemt of respondents saying their only income is from NZ Super and have no other investments, savings or KiwiSaver. Over a third (36 percent) of working older people primarily do so because of financial pressures.
“there tends to be a ‘golden assumption’ that over 65s today are mortgage-free couples living in relative comfort on NZ Super, but there’s been little research to test whether this is actually the case,” said Retirement Commissioner Jane Wrightson.
“This research provides us with a comprehensive view of what retirement really looks like today and highlights the missing voices of a group that can go largely unheard. It stands as an important reminder that things are not always as ‘golden’ as some may assume. These insights provide us with valuable evidence to help identify practical policies and interventions that could lead to better retirement outcomes for New Zealanders in the future.”
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