Government change needed to address increasing number of retirees and financial disparities

Whanganui & Partners population metrics for 2022 showed 21.9 per cent of Whanganui’s population is aged 65 and older, amounting to around 9922 people. Photo / Bevan Conley

Financially, people are finding it harder to retire, with housing identified as one of the major reasons.

A report by the Retirement Commission estimates there will be a 100 per cent increase in people over 65 renting by 2048.

“The balance of homeownership is also expected to shift to 60 per cent of homeowners and 40 per cent paying rent, which will equate to up to 600,000 older people renting,” its Review of Retirement Income Policies report said.

Whanganui & Partners population metrics for 2022 showed 21.9 per cent of Whanganui’s population is aged 65 and older, amounting to around 9922 people.

Age Concern Whanganui manager Michelle Malcolm said the organisation had seen multiple people who could not afford to retire.

“There’s been no increase in the pension, but a huge increase in petrol, groceries and rent,” she said.

“Even when you do own your own home, the increase in rates and insurance rises, too.”

She said everyone’s personal circumstances were different.

“And just because people don’t have a mortgage doesn’t mean they don’t have another financial burden of some sort.

“If you’re living on a pension fortnight to fortnight and need to replace your roof, how are you going to do that?”

She said some people were not using heating because of the cost of power, even with the winter energy payment.

“There are people who are happily retired, but I suppose what we see more of is people struggling.

“People are finding it tough right now, so I don’t know what the future will look like.”

Grey Power acting national secretary and Whanganui district councillor, Ross Fallen, said his biggest concern was pensioners being forced to stop recreational activities due to financial reasons.

Grey Power acting national secretary Ross Fallen.

“We see Grey Power members who, with the high cost of living, petrol and food, don’t want to go out,” Fallen said.

“By cutting out travel and costs like eating out, it stops them from socialising and adds to loneliness and disconnection from the community.”

He said those on a pension and renting were more at-risk than those who owned a home.

The current NZ Super payment for a single person living alone is $462.94.

Meanwhile, according to Trade Me, the median rent in Whanganui is $515.

The number of people over 65 who don't own a home is expected to double by 2048.

Community Housing Aotearoa-Ngā Wharerau o Aotearoa (CHA) chief executive Vic Crockford said the Retirement Commission report highlighted the importance of using the current RMA reforms to provide a nationally-agreed framework for inclusionary housing.

“We are failing to provide adequate housing that meets the needs and aspirations of older people,” Crockford said.

“As our current housing crisis demonstrates, the private market will not provide the types of homes the Commission is calling for without intervention, nor do subsidies work on their own.”

Ethnic disparity

The report also said life expectancy meant Māori received NZ Super for fewer years on average than non-Māori.

Life expectancy at birth is 73.4 years for Māori males and 77.1 years for Māori females.

In comparison, non-Māori males are expected to live, on average, to 80.9 years, while non-Māori females are expected to live to 84.4 years.

Data from the report showed 66 per cent of people over the age of 65 own their home outright, compared to 47 per cent for Māori and 27 per cent of Pasifika.

“This is important because there has been an implicit assumption underlying NZ Super that by the time people become eligible, at age 65, they will own their own home outright or be in secure and affordable public housing,” the report said.

Some choosing to work longer

Whanganui & Partners capability strategic lead Rach Hoskin said many who continued working after 65 would also do so due to the social aspects of their employment, valuing the routine and continuity.

“Workers aged 65 and over continue to add value to our workforce through their skills and experience, and many businesses consider these workers to be a great asset to their organisations.

“We frequently hear that businesses rely on more experienced workers and that they possess knowledge and expertise that is crucial in helping younger workers become proficient.”

Hoskin said the move towards delaying retirement has coincided with improved health outcomes for people aged 65 and older and life expectancy in New Zealand rising.