Retirees cut back on shopping and medical appointments to cut costs - survey

By Felix Walton of RNZ

Retirees are cutting down on shopping, avoiding social events and even skipping doctors' appointments to save money, according to new research.

The Retirement Commission says the high cost of living is putting stress on pensioners' wallets.

The survey of 1450 retirement age New Zealanders found 37% said their financial situation had worsened since 2022.

Retirement Commission research lead Dr Jo Gamble said retired people were taking some concerning steps to save money.

“Nearly half of people are saying that they’ve reported decreasing time that they’re spending with family and friends or doing things that are of interest to them,” she said.

“Twenty-six per cent are missing out on medical appointments, so that’s concerning. And we’ve got 28% who are reducing the amount of food they’re buying.”

She was particularly worried by the number choosing to skip or postpone their medical treatment.

“What’s concerning is it’s even higher amongst the disabled people that we surveyed. Thirty-six per cent of disabled people are now putting off getting medical assistance and they’re the ones that really need it the most,” she said.

“That’s going to have ongoing impacts on our social system as well.”

Grey Power national president Gayle Chambers said it was increasingly common for older people to put off visiting the doctor.

“This is something that’s been going on for a long time. You know, you’re paying upwards of $45 for a visit,” she said.

“That’s a lot of money when you’re only living on the pension.”

She said the New Zealand Super was just too meagre for most to live on.

“The pension was never ever intended for you to have a high life, but what it’s coming down to now is it actually isn’t meeting the basic costs,” Chambers said.

“A single person or a couple living in private rented accommodation can barely make ends meet.”

Eighty-eight-year-old Margaret Fairhall agreed wholeheartedly.

“Every time you go to pay something or to buy something, it’s gone up in price,” she exclaimed.

“But our pensions do not go with the cost of living. It needs to be measured against the cost of living.”

North Harbour Budgeting Service general manager Claudette Wilson said the number of elderly Aucklanders seeking financial advice had doubled over the past year.

“Thirty-seven per cent of our clients recently have been over 65. It’s a significant change. We would generally get 15 to 20% and we’ve been watching the numbers rise.”

Gamble said the pension was based on an outdated idea of what retirement looked like.

“I guess there’s a golden assumption that New Zealand Super in the past has been based on, which is that older people are basically a married couple living in a house they own with no mortgage,” she said.

“And we’ve actually seen amongst our participants fewer than half, I think 48% of them, live in that situation.”

With the commission to review the Government’s retirement income policies next year, she hoped change was on the horizon.

“Every three years the commission’s required to do a review of the retirement income policy settings and we’re just about to launch into the next cycle,” Gamble said.

“That will be providing us with insights that we can use to put together recommendations to governments about policy improvements or strategies we can use.”