More pensioners are turning to hardship support, as claims nearly triple since 2020

A growing number of pensioners are turning to Government hardship support as a last resort in the cost of living crisis.

Applications for Temporary Additional Support from NZ Super recipients have almost tripled since 2020, rising from about 22,000 to more than 61,000 in 2025.

Temporary Additional Support is a hardship payment for people whose essential living costs exceed what they can meet from their income and other forms of assistance.

Data released to Newstalk ZB under the Official Information Act, shows overall applications from people the Ministry of Social Development classifies as “not on a main benefit” increased from approximately 62,000 in 2020 to 98,000 in 2025- up almost 60%.

Analysis shows the growth is driven by a surge in applications from NZ Super recipients.

Retirement Commissioner David Boyle said the increase was “a signal worth paying attention to” because Temporary Additional Support exists as a safety net.

“It’s just a sign of the times, isn’t it?” Boyle said.

While TAS applications surged, declines fell by more than 10,000 between 2020 and 2025.

Not only are more super annuitants requiring support, but they’re receiving larger payments too - with data revealing the average weekly payment increased from about $71 in 2020 to $111 in 2025.

Retirement Commission research revealed to Newstalk ZB highlights older renters stand out as one of New Zealand’s most financially vulnerable groups.

Eighty percent of renters aged 65 and over are financially uncomfortable, up from 66% in 2021/22.

Among those relying entirely on NZ Super for income, 73% reported the same.

“Housing costs are one of the biggest drivers of financial well-being in retirement,” Boyle said.

The Commission said the proportion of low-income retirees spending more than 40% of their income on rent has climbed from 51% to 68% since 2009.

Mortgage-free home ownership among older people has fallen from 83% to 71%.

Many older New Zealanders have little income beyond NZ Super.

“Significant numbers of older New Zealanders, particularly renters and those relying solely on New Zealand Super, are experiencing financial discomfort and may have limited capacity to absorb increases in living costs and housing costs,” Boyle said.

“I do worry in respect of those that are not home ownership owners in their retirement,” Boyle said, “if they can, they’re going to need to save more to cover those costs.”

Grey Power’s National President David Marshall said it’s not a surprise.

He explained the New Zealand Super was based on the understanding that people would have a mortgage-free home when they retired, “but we’re finding more and more people don’t and life experiences mean that many end up in retirement without a mortgage-free home,” Marshall said.

Marshall said the rising costs of rents, rates, energy and insurance are proving unsustainable for many.

“The accommodation supplement hasn’t been increased since 2018, that there is a backlog because rents have continued to increase by over 150% during that time,” Marshall said.

“For them trying to rent is pretty impossible, and there’s no real security,” Marshall said.

Stats NZ reports in June 2025 there were approximately 900,000 people aged 65 and older living in New Zealand, representing roughly one in six Kiwis.

The population is growing rapidly, with the 65+ group increasing by over 500 people a week and expected to cross the 1 million mark by 2029.

But Commissioner Boyle explained it’s unlikely the rise in hardship support applications is simply a result of more people reaching retirement age.

His advice is for younger New Zealanders to prioritise planning ahead, and saving regularly.

“The greatest benefit that younger New Zealanders have is time,” Boyle said, but “65 isn’t the finish line, I call it more of the fun line.”

“Having a plan, saving regularly, as much as you can over the lifetime of your working career will build a great foundation and give you a lot more resilience.”

Marshall said New Zealand needs to think of new solutions, “particularly as the issue with homelessness and those having to rent in retirement is growing.”

“It’s not going to suddenly stop, it’s getting worse”.

Rosie Leishman is a reporter and multimedia journalist based in Ōtautahi, Christchurch. She joined Newstalk ZB in 2025, after experience working at theBangkok Postin Thailand. She has a keen interest in social issues, the environment and general news.