Retirement commissioner warns superannuation under pressure amid rising costs

Cost of living pressures leave pensioners struggling on fixed superannuation. Photo / 123RF

The Retirement Commissioner says the cost of living is taking a toll on pensioners living off superannuation.

The latest ANZ-Roy Morgan survey shows consumers’ perceptions of their current personal financial situations fell to the weakest level in the survey since October 2023.

It comes after RNZ reported earlier this week financial advisers had found even some retirees that had paid off their homes were struggling with the cost of living pressures.

Retirement Commissioner Jane Wrightson told Saturday Morning 40% of pensioners were living off superannuation alone, with another 20% on just a bit more.

“So there is discomfort, no doubt about it.”

Wrightson said the statistics were a wake-up call for people who were young and middle-aged.

“NZ super is predicated on you either having a mortgage-free home or having affordable social housing, and both of those models of course themselves are under considerable stress at the moment.”

She said that policy changes around superannuation such as proposed increases in age eligibility would “hurt” women and minority groups the most.

That was because those people gather less retirement savings over their lifetime because of the gender pay gap and equity issues, Wrightson said.

- RNZ