Increasing numbers of sseniors are living on the breadline while receiving superannuation. Photo / Getty Images
Increasing numbers of sseniors are living on the breadline while receiving superannuation. Photo / Getty Images
It has been another busy and interesting year in our region. We revisit some of our most popular premium stories from 2022. Originally published on April 30.
One elderly couple feel "ripped off" while they struggle in retirement, dipping into their small pool of savings to get by.
Another manhas his coffee black because he can't afford milk and saves $5 a fortnight just to afford his medication.
Seniors are skipping meals, not going to the supermarket because of fuel prices, and ignoring health issues as the cost of living soars, advocates say.
They say some are working past retirement to make ends meet and more retirees are becoming homeless as they can't afford their rentals.
Annual inflation hit 6.9 per cent in the year to March 31, the largest movement in 30 years.
Food prices have also hit a 10-year high, rising 7.6 per cent in March compared to the same time last year.
Grocery food prices were up 6.7 per cent, fruit and vegetable prices were up 18 per cent, meat, poultry, and fish prices up 8.7 per cent and non-alcoholic beverage prices were up 2.7 per cent.
According to the Ministry of Social Development, superannuants living alone are paid $538 a week before tax, and couples are paid a combined $817 as of April. This was up from $506 and $768 respectively.
Rotorua's Christine Brock, 67, said she and her husband, 69, felt "ripped off" as they struggled in their retirement despite working since they were 15.
The couple received a combined $1350 in superannuation payments a fortnight.
She said they rarely left the house because of the price of fuel and they shopped fortnightly, froze meat and planned meals to stretch every dollar.
"I have been thinking of becoming vegetarian, mind you, veges are expensive too."
"You've got to be a scrooge about everything ... if any other costs come up in between paydays, you're buggered," one retiree says. Photo / NZME
The couple sold their property in Auckland two years ago due to the cost of living and bought in Rotorua so they could do more and live comfortably.
"That is not the case anymore."
They still had a mortgage with about nine years left to pay.
The couple both did odd jobs - originally for pocket money for going out - which now covered the basics, and they dipped into their savings for essentials.
Living on the superannuation payment was "hard" and the couple feared they would not be able to get by as they aged and could not do the odd jobs anymore.
She said everyone was in the same situation, not just retirees.
Frank Russell, 76, said he had switched to black tea and coffee because he can no longer afford milk despite having worked "very hard" his entire life.
He said he had about $100 a fortnight left for food once the $280 council unit rent was paid, along with other bills.
Frank Russell, 76, lives week to week on the superannuation with no cash left over. Photo / Cira Olivier
He made a lot of stews to stretch the meat he bought, adding frozen vegetables as they were cheaper than fresh. He also filled up on pies, bread, corned beef and deli ham.
His carer sometimes dropped off coffee and sugar for him when he could not afford it, and monthly meals out with his sister had gone out of the budget.
"A few years ago, I used to have money left over for the following week, I don't have that now."
He went to the doctor every three months but put aside money each fortnight so he could afford it, and put away $5 a fortnight for his medication.
Once everything was paid, he would buy a pack of cigarettes if there was any money left.
"You've got to be a scrooge about everything ... if any other costs come up in between paydays, you're buggered."
He sometimes dipped into his savings, which was at $40, and tried to top it up with $20 when he could.
Tauranga-based gerontologist Carole Gordon said some elderly people skipped meals, or ate cheese and crackers or an egg on toast.
Advocate for the elderly Carol Gordon. Photo / NZME
"People save up to get a haircut, that's a major cost."
The ageing body, in general, was costly. With health insurance out of the question for many, some weren't getting medical attention, she said.
She spoke of a woman aged 93 who lived in her old house in a well-to-do suburb and street.
"Her house is probably worth a lot but she lives in poverty."
She did not have money for doctor appointments or food, and her neighbours took turns cooking for her and washing her on the plank of wood over her bathtub.
"It's not a nice place managing on the super alone. It's the most stressful thing for an older person."
She said people with minimal or no savings were the worst off, as their spending to survive ate into what little savings they had left.
While the payments increased each year, it "never quite covers" the cost of living, which was mainly food, housing, property repairs and medical.
Age Concern Rotorua manager Rory O'Rourke said transport, food and health were sacrificed and most of their income went to housing and power.
More worked past retirement to "try to make ends meet".
Expensive fuel caused loneliness and social isolation, and many were not going to the supermarket because they could not afford to get there.
Age Concern manager Rory O'Rourke. Photo / NZME
There were about 11,000 people aged over 65 in Rotorua, which was expected to double in 10 years.
He said it was becoming increasingly common for retirees to not own their own home and the "ridiculous" cost of rent meant more elderly were struggling and becoming homeless.
Rotorua Budget Advisory Service manager Pakanui Tuhura retirees were generally mentally strong but their quality of life and mental health was impacted by rising costs.
Age Concern manager Rory O'Rourke. Photo / NZME
Those who lived at home had vegetable gardens and fruit trees, and may not have meat on the menu or used the cheaper cuts.
He said seniors prioritised accommodation, power and food, but many liked to support their children and grandchildren, which was sometimes a problem.
He said retirees generally had plans in place for when the cost of living rose.
Tips for those in, or approaching retirement:
• Plan to be debt-free before retirement. • Decide when you will retire and plan for the post-retirement lifestyle you want once you no longer work. • Save as much as possible, as superannuation covers living costs and doesn’t extend to much in the way of luxuries. • Work with a financial mentor to make a plan to meet expenses, plan for the unforeseen, and get cost-saving tips. • Make sure you get your maximum entitlements. • If you’re healthy enough, work part-time. • Join a club - friendship is free and can act as a support network and you can get other people’s experiences. • Get a Power of Attorney sorted with someone you trust. • Work with Budget Advice if you have debt to get rid of it as quickly as possible. • Work with Budget Advice to find the safest and most affordable option if you need to borrow. - Source: Tauranga and Rotorua Budget Advisory Services
