Paying for housing is becoming tougher and tougher for people aged 65 and over, new research from The Retirement Commission has found.
Treasury figures show for 40% of people aged 65 and over, New Zealand super is their only source of income.
For superannuitants who are still renting, they are likely to be spending 40% or more of their income on housing.
It’s even worse for those who have mortgages. Eighty per cent spend more than 40% on housing costs and more than half spend over 80% on paying for housing.
It was not always like this. In 1986, 87% of those aged over 60 were mortgage-free and living the dream retirement lifestyle.
Fast forward a few decades and life has changed, with even those just about to retire worried about their future.
Throwing back to 1986, just 13% were renting, compared to 20% now.
This study’s author, Dr Suzy Morrissey, believes there will be a 100% increase in those renting by 2048.
“We’ve got up to 600,000 people over 65 renting by 2048, and obviously housing costs and renting have increased over recent years,” Morrissey said.
Grey Power says studies they’ve done show the same level of hardship.
“Unfortunately the most common ones that we are hearing about is cutting back on heating and cutting back on food and those are things obviously that are absolutely essential to maintaining good health for everybody, not just those in old age,” vice president Pete Matchem told 1News.
There are calls for the pension to be increased and for other help too.
“Alternatives might be to look at the accommodation supplement,” Morrissey said.
“The challenge there for older people is there’s quite a low cash asset threshold for that and that threshold hasn’t been looked at since 1993 when the accommodation supplement came in.”
No matter their age, people are being encouraged to think about saving for their retirement.
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