Bryan Gaudin: "The pension does not allow us to live in Auckland with these sort of cost increases."
The budget papers say that as Auckland's population ages "an increasing proportion will ... be more reliant on fixed incomes to absorb increased costs of services".
The statement was made in the context of a growing demand for infrastructure and the ability of different groups to pay the costs.
There are 163,158 people in Auckland aged 65 or over, according to the 2013 Census figures, about 11 per cent of the population.
The budget also targets the council's 1400 pensioner housing tenants with a proposed average 20 per cent rent increase to help solve its financial squeeze. Increases will be capped at $15 a week each year.
Bill Rayner, the Auckland region director of Grey Power, said rising rates were impacting on the elderly, particularly those relying on the fortnightly pension of $733.88 for a single person and $1129.04 for a married couple.
"The seniors of the city have paid their dues, built a major part of the existing infrastructure, and this contribution needs to be recognised, and relief given from the constantly rising rates that are basically for the growth of the city," he said.
Mr Rayner said the pension, which was tied to inflation (currently 0.8 per cent) could not keep pace with rates rises.
Water price increases of 2.5 per cent over the next two years and rising electricity costs were also eating into pensioners' incomes, he said.
Mr Rayner said Grey Power had suggested the council provide "meaningful" rates relief for the elderly, such as a grandfather clause to cap rates at aged 65 for those who have paid rates for 20 years.
Another suggestion was to increase the Government-funded rates rebate of up to $605.
Mayor Len Brown said he had always been concerned that the elderly community was not taking full advantage of measures to reduce the impact of rates increases, including the rates rebate which only one-in-three eligible people apply for.
He said for people who may not qualify for the rates rebate, the council offered a rates postponement scheme for a proportion of rates until the sale of the property.
Auckland's ageing population
1996:109,950.
2001:115,851.
2006:128,541.
2013:163,158.
- Source: Census figures for 65 years and over
Couple mull straitened retirement
Tony and Mary Price. Photo / Nick Reed
Tony Price is like a lot of people easing out of work and into retirement.
The 67-year-old technologist and his wife Mary are arranging their living and finances, which will reduce from $90,000 a year once they both put their feet up. The couple are making sure their Pt Chevalier house is in good repair to minimise maintenance costs and thinking carefully about adjusting to a lower fixed income.
The Prices' rates have risen 24 per cent in the past three years and they say the proposed increase of 5.6 per cent is a blow, particularly because they are less likely to reap the benefits of new infrastructure investment. Mr Price said if rates kept rising, even at 3 or 4 per cent, it would be difficult to economise, especially with the rising costs of water and electricity.
By the time he is in his early 70s, he estimates his income will be down to the pension and a bit of interest from savings.
"I think it would be extremely difficult to live in Auckland on a married pension."
