Source: Radio New Zealand
File photo. 123rf
Pensioners are turning to foodbanks to get by, as a new report says the pressure is growing on those relying on NZ Super alone.
Good Shepherd has released the report, which focused on the housing experiences of women over 65.
It follows concerns being raised that the recent adjustment to NZ Super is not enough to keep up with growing pressure, particularly in fuel prices.
NZ Super lifted 3.1 percent this year, in line with last year’s rate of inflation. But the cost of essentials has risen by more than that overall figure, and rates and fuel are expected to continue at a faster pace this year.
Good Shepherd said many women were facing significant challenges because of having more limited income as well as the lifetime effect of low pay, having taken time out of the workforce to look after children and other factors.
Its report said a consistent theme from the women interviewed was that housing insecurity had stemmed from system settings that had not kept up with the realities of ageing for single people.
The women reported wanting more security of tenure, dignity in living independently, safety and affordability.
“In every interview, women spoke about the same underlying pressure: the discrepancy between the cost of living and the NZ Super was growing. Whether renting or owning, many were spending more than half their weekly income on housing before they could think about food, power, transport or healthcare.
“Women managed their budgets with immense discipline – heating only one room, going to bed early to save power, shopping at discount stores, growing vegetables, through DIY – but still found themselves stretched to the limit. These were not small lifestyle adjustments. They had real health consequences.”
Even women who owned their own homes were facing pressure from things like insurance and maintenance.
“For many, these pressures were magnified by what can be described as a ‘single person penalty’. Living alone was essential for their safety, dignity and emotional wellbeing, but it meant carrying all household costs on a single fixed income. Women described living alone not as a luxury, but as a protective factor as they aged.”
‘… you can’t budget what you don’t have’
Good Shepherd policy and advocacy lead Brittany Goodwin said retired women were often dealing with the effect of a gender pay gap through their working lives and it became a compounding problem as they faced rising costs.
“There’s a point at which you can’t budget what you don’t have.”
Good Shepherd has been piloting a programme to help with older women’s housing costs, addressing issues such as the problem of pulling a bond together for a new rental property.
“You might be able to pay the rent week to week, but you can’t pay that upfront cost … heat pumps, all of those kind of things that go into your house to make it liveable.
“So, what we’re trying to do is be able to support them a little bit and provide a loan environment where that’s possible. A lot of women of that age can’t get traditional lending because the affordability requirements just aren’t there … you might not be able to remortgage your home because the bank sees that as risky.”
She said people facing high housing costs were often just going without other things.
“This is a housing problem as much as anything. We do not have affordable housing. We do not have a diverse stock of affordable housing. People don’t have anywhere to live and they don’t have anywhere to go. So, that’s a fundamental challenge as well.
“It’s not just as simple as, oh, raise NZ Super by X dollars … it’s a big puzzle. And we need to have that collective support of different systems in order to actually make it have a difference for these people’s lives.”
123RF
Salvation Army data shows the proportion of people seeking food support who are over 65 has increased slightly over the past two years.
In the last year, 859 women over 65 had sought food support, and a total of 1793 people over 65.
In the past 12 months, people aged over 65 were 5.5 percent of total support, up from 5.3 percent in the first six months of 2024. The proportion of over 65s seeking support who were women jumped from 30.9 percent last year to 34.5 percent this year.
A spokesperson said NZ Super was a major protective factor for people over 65.
“Homelessness and the high cost of rental accommodation has been a key driver of use of our foodbanks in recent years, which has increased the numbers of single people overall (around 49 percent in total, made up of 30 percent single men and 18.7 percent single women). Of these single women, the highest proportion of users is 35-49 years (41.6 percent) followed by 19-34 (28.9 percent) and 50-54 (24.7 percent).”
David Verry, a financial mentor at North Harbour Budgeting Services, said the pension was often insufficient.
“Try filling a car up at the moment. This goes for single males too and even couples, although some of the costs can be spread between the two more adequately.
“Without KiwiSaver or the like being available then it is a pretty dire existence. If someone is not in a mortgage-free property, then they are likely to be needing an accommodation supplement. It’s a real basics approach. Various reports say that a single person on a pension will need between $180,000 and $355,000 of KiwiSaver or savings for a no frills lifestyle.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
