The Grey Power Federation is interested in a recent report by Massey University which shows national superannuation alone is no longer an adequate pension for retired people.

Associate Professor Claire Matthews from the Massey Business School, who wrote the report says, while inflation, the highest since 1990, is one of several contributing factors, the war in Ukraine and increasing energy costs were adding to the problem.

Federation president Jan Pentecost said the extensive report was a vindication of Grey Power’s claims, over many years, that the gap between national superannuation and household expenditure had continued to exceed the rate of inflation.

“As things are now a single person household with a no-frills lifestyle is having to draw down $10,000 per year from savings to manage in a provincial location, while a single person in a larger city needs an extra $16,500 annually, provided they have those savings. Many do not.

Pentecost said some federation members report they are not coping or coping poorly financially with life in retirement, particularly those who live alone and are renting, or living in pensioner villages, or social housing.

Over 40% of our members are worried about their likely financial situation in ten years from now. It is abundantly clear that national superannuation must be inflation adjusted each year and that supplementary allowances particularly for accommodation, healthcare & energy costs must be increased. We need a level playing field for eligibility to accommodation supplements as a matter of urgency.”

Dr Matthews also says it is important for New Zealanders to start planning and taking action now if they want to achieve a particular style of living in retirement but Pentecost said people on low incomes had limited ability to save.

“After decades of a low wage economy we have far too many people who will never own their own homes and who are forced to pay excessive rents that often exceed 40% of their NZ Super, leaving little for food, healthcare, energy costs etc. National superannuation is not adequate on its own for these people and many face a bleak future in retirement unless there is a genuine intention by the government to avoid a social calamity.”

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