He failed the test after going through a stop sign, and the assessor told him he needed driving lessons.
He took two lessons, which cost $70 each.
Then he sat the hour-long test again and passed, but this time it cost him $375.
His new licence allows him to drive within a 22km radius of his house. In total it cost him $750 to renew his driver licence.
"I think it's too much money and it's a rip-off - especially for pensioners," he said.
"It's like being fined."
The occupational therapist who assessed his driving, Deb Helmore of Drive-Ability Hawke's Bay, acknowledged the tests were expensive.
"What I do is a specialised driving assessment that's medically related," she said.
The cost covered her services as well as those of the driving instructor.
"We try to avoid re-assessments if we can, because it is expensive. We're up-front about the costs - we're aware of them right from the start. It's difficult for some people to come up with."
The Government had paid for the assessments up until about five years ago.
A New Zealand Transport Agency (NZTA) spokesman said fees for the specialist tests carried out by occupational therapists were set by Occupational Therapy New Zealand.
Grey Power Hastings and Districts Association president Marie Dunningham said she believed the assessments were too costly.
"This is demoralising - if he's only on a pension, it's an expense he can ill-afford," she said.
"When you take away a private means of transport you're looking at a limited social life and a great deal of dependence on the kindness of others."
