Pensioners find Budget bypass grim news

John and Marian Laurie already found themselves unable to keep pace with rising costs. Photo / Greg Bowker

The pension minus essential living costs equals a deficit of $129 a week for Papatoetoe superannuitants John and Marian Laurie.

Mr Laurie, 85, spent his career administering court debt repayment orders and still volunteers as a budget adviser for Papatoetoe's Training and Budget Service. He has kept meticulous accounts all his life.

He and his wife live in a small brick and tile unit, paying $255 rent a week.

Their power bill works out at $60.13 a week, the phone including a "lifeline" for their heart conditions is $23.66 a week, water costs $8.89, car insurance $11.69, house contents insurance $6.02, life insurances for both of them $33.74 and provision for the six-monthly warrant of fitness is $6.72 a week.

They pay $45.71 a week for medical costs including medicines, doctors' visits and batteries for their hearing aids.

They spend $120 a week on food, $30 on petrol, $40 on other personal needs and $150 a week paying off their credit card, which is the only way they have been able to cover their deficit.

Total spending: $771.56.

But the married pension, fixed at 66 per cent of the net average wage, is only $478.38.

The couple also qualify for an accommodation supplement and a disability allowance, which bring their total income from Work and Income up to $633.50 a week.

"I get a small travel allowance from my work with the budget service," Mr Laurie says. "Nevertheless our deficit is still about $129 a week."

He says the couple's medical costs are at least 75 per cent more than their disability allowance because the allowance is based on the previous year's medical bills, yet the bills grow as the Lauries age.

The accommodation supplement is based on the difference between rent and income, so last month's "meagre" tax cuts were partly clawed back in reduced supplement.

Without the credit card they would not be able to manage because the costs are rising all the time.

"The only comment I can make on the Government's Budget is that in my opinion it is very sound, but it failed to put any more into superannuation and that is something we will have to live with," Mr Laurie says.