Retirees Feel Pinch of Inflation More Than Any Other Group

Retiree households in New Zealand are feeling the pinch of inflation more than any other group, according to data from Stats NZ. Superannuitant households experienced an annual inflation rate of 4.5%, significantly higher than the overall household average of 3.2%. Westpac chief economist Kelly Eckhold attributed this disparity to rising costs for essentials such as electricity (up 12%), rates (8.8%), and petrol.

Karen Billings-Jensen, CEO of Age Concern, noted that 40% of retired households rely solely on NZ Super for income, making it challenging for them to absorb cost increases. Those who own their homes face additional expenses, such as maintenance and repairs, which can be difficult to finance on a fixed budget.

Financial mentors report that clients over 65 are spending an average of 42% of their income on rent or board, with many turning to food banks for assistance. Some older individuals are also supporting children and grandchildren, forcing them to cut back on necessities like meals.