A comprehensive analysis of what life looks like for retirees in New Zealand has revealed many are missing out on medical appointments, social activities and radically changing their shopping habits to manage the cost-of-living challenges.

Te Ara Ahunga Ora Retirement Commission conducted qualitative and quantitative research with more than 1450 New Zealanders aged 65 and over.

The research found that 37% aged 65 plus say that their financial situation has worsened over the last two years. Increasing ‘cost-of-living’ pressures have also caused 46% of participants to say they have had to reduce social interactions or activities important to them, 28% now buy less food and 26% are putting off medical treatment.

Retirement Commission Research Lead Dr Jo Gamble says the findings highlight how tough some older New Zealanders have found the last few years and the precarious situation people face if they’re not mortgage-free, with additional sources of income.

“We can see that those who are renting, or who have experienced life shocks after 50 or have disabilities or long-term health conditions are finding things the toughest. These groups typically have fewer financial assets and are therefore less likely to be financially resilient.

“The findings illustrate the significant financial buffer being mortgage-free provides compared to those renting. In addition, people with investments and/or KiwiSaver were nearly twice as likely to feel their financial situation was comfortable compared to those without.”

For people on low incomes, completely reliant on NZ Super, the change in economic situation over the past two years has meant more than just tightening the belt, moving instead into day-to-day survival.

Rent was nearing unaffordable for one research participant, who said: “My rent has gone up twice in the past two years by $60, and the house – there’s a lot of stuff wrong with it, like it hasn’t been insulated. I’m too scared to complain. Always think that if I don't have anything to eat, at least no one would know because I live on my own...”

For people on middle incomes, belt-tightening had generally been sufficient but there was growing unease about when things would return to normal since they were eroding their security/nest egg sooner than they planned to.

This research further highlighted the reliance people have on NZ Super, with 39% of respondents saying their only income is from NZ Super and have no other investments, savings or KiwiSaver. Over a third (36%) of working older people primarily do so because of financial pressures.

Retirement Commissioner Jane Wrightson says, “there tends to be a ‘golden assumption’ that over 65s today are mortgage-free couples living in relative comfort on NZ Super, but there’s been little research to test whether this is actually the case.

“This research provides us with a comprehensive view of what retirement really looks like today and highlights the missing voices of a group that can go largely unheard. It stands as an important reminder that things are not always as ‘golden’ as some may assume.

“These insights provide us with valuable evidence to help identify practical policies and interventions that could lead to better retirement outcomes for New Zealanders in the future.”

By the numbers

• 37% say their financial situation has worsened over the last two years, representing a net change of -26 (11% say their financial situation has improved).
• 46% of participants have reduced social interactions or activities important to them, 28% buy less food and 26% are putting off medical treatment.
• 14% of over 65s don’t describe themselves as ‘retired’ (the proportion increases to 20% for 65-74s). Over a third (36%) of working older people primarily do so because of financial pressures.
• 39% of participants say they’re completely reliant on NZ Super for their income.
• Fewer than half (48%) of participants live with their spouse/partner and own their homes mortgage free.
• 43% of mortgage-holders say they don’t have any investments/savings/KiwiSaver
• 56% of participants say they feel financially comfortable or very comfortable, leaving 32% feeling financially exposed and a further 12% feeling as if they’re in a financially poor situation.

This research will support the 2025 Review of Retirement Income Policy (RRIP) which the Retirement Commission is required by the Government to undertake every three years.

This week the Terms of Reference for the RRIP have been released, with the Retirement Commission asked to undertake further research on topics including KiwiSaver and other savings, emerging trends and how these will play out in New Zealand over the next 25 years, the experiences of women in retirement and how New Zealand retirement policies compare globally.

Note:

This research builds on the 2022 Te Ara Ahunga Ora qualitative research project which examined the retirement of experiences of 65 plus.

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