Nearly half of New Zealanders over 50 are finding it harder to cover essential expenses than they were a year ago, while 71 percent are concerned that rising costs are affecting their financial security.
The findings come from the Silver Dollar Report 2026, commissioned by New Zealand Seniors in partnership with consumer research group MYMAVINS. More than 500 New Zealanders over 50 were surveyed about how they are managing their spending as living costs rise.
Almost half, 49 percent, said it was harder to cover essential expenses than a year earlier, while 71 percent were moderately to extremely concerned about the impact of rising costs on their financial security.
Essentials Come Under Pressure
The financial pressure has forced some older New Zealanders to make choices between essential expenses.
Two in five respondents, 41 percent, said they had needed to choose between paying for one essential or another during the past year. Clothing had been cut back by 59 percent, food by 57 percent and personal care items by 54 percent.
Groceries were the biggest financial pressure for 80 percent of respondents, with 57 percent seeking cheaper grocery brands.
Utility and power bills were the second biggest concern, identified by 66 percent, while 46 percent had reduced heating and power use at home.
Retirement Confidence Falls
The survey also found concern about retirement savings.
Three in five respondents, 60 percent, felt their total retirement savings were inadequate, including 33 percent who considered them very inadequate.
The report cited recent Retirement Commission figures showing the average KiwiSaver balance at the end of 2024 was approximately $37,000.
Among those who were not yet fully retired, 46 percent were not confident they would be able to retire comfortably.
For those still working, 58 percent expected they might need to work longer than planned, although 42 percent identified between 65 and 69 as their ideal retirement age.
Close to two in five respondents, 39 percent, were very or extremely concerned about running out of money in retirement.
For 84 percent, running out of money meant being unable to cover essential expenses without financial stress.
Supporting Younger Generations
The report also highlighted the financial support older New Zealanders are providing to younger generations.
Nearly half, 49 percent, said they were financially supporting younger family members, while 11 percent were going into debt to help their children or grandchildren.
Among those providing support, 40 percent had given at least $5,000 during the past year, while 7 percent had provided $20,000 or more.
The money was most commonly used for groceries, cited by 49 percent, followed by one-off payments at 31 percent and household bills at 29 percent.
Half of those providing support, 50 percent, said concern for the financial future of younger generations was driving their decision to help.
However, 42 percent were drawing on their own savings to provide that support, while 40 percent were cutting back on their own spending.
For 34 percent, helping family had reduced their ability to save, while 13 percent said it had affected their ability to contribute to KiwiSaver.
More than a quarter, 27 percent, were concerned that supporting family could reduce their own financial security later in life.
Housing and Care Decisions
Housing and future care costs were also being considered. Just over one in four respondents, 26 percent, were considering a major housing decision, such as downsizing, during the next decade.
Affordability remained a consideration, with 55 percent citing the ability to afford aged care as a barrier to planning. The report said residential care can cost up to $80,000 annually.
Lifestyle Priorities Remain
The survey found financial pressure was also influencing social activities, travel and discretionary spending.
Just over two in five respondents, 41 percent, said their finances limited what they could do socially, while 63 percent had adjusted their travel plans. Forty-four percent had cut back on what the report described as “life’s little luxuries”.
However, respondents were still making room for some discretionary spending, including takeaway meals at 39 percent, streaming services at 33 percent and dining out at 32 percent.
More than three in four respondents, 77 percent, agreed it was important to continue spending on things they enjoyed, even when money was tight.
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