Kerre Woodham: Is this how you imagined your retirement would go?

Author: Kerre Woodham ,
Publish Date: Wed, 29 Jul 2026, 12:03pm

Follow the podcast on

From good news to bad news really – a growing number of pensioners are turning to the Government's hardship support network as a last resort as the cost of living crisis grinds on. Applications for temporary additional support from New Zealand super recipients have almost tripled since 2020, rising from around about 22,000 per year to more than 61,000 in 2025.

Retirement Commission research revealed to Newstalk ZB highlights older renters as one of New Zealand's most financially vulnerable groups. 80% of renters aged 65 and over are financially uncomfortable. 80%. That's up from 66% who were uncomfortable in 21/22. Mortgage free home ownership among older people has fallen from 83% to 71%, and that's going to keep declining. Many older New Zealanders have little income beyond New Zealand Super.

If you're young and you're fit, you can try to find extra work to pay the bills. You can share a house and the associated costs. When you have young children, slightly more difficult. There are costs there, but you'll often scrimp and save so that the kids don't go without. You might not have any simple luxuries, but you'll make sure the kids are alright.

When you're older and you've already pared things down to basic necessities, there's not much more you can do. You start running out of options and you need to rely on the largesse of the state. There's the temporary additional support – that's around $111 per week. There's the winter energy payment paid automatically from the 1st of May to the 1st of October to people on main benefits, New Zealand Super, or a veteran's pension, and you don't need to apply for that if you qualify. That gives you an extra $20.46 a week if you're on your own, $31.82 if you're a couple or have dependent children, and if that's per week, that should just about cover your power bill. The way the world is going, looking at what's happening in Europe, you might need a summer living payment as well to help pay for the air conditioning.

What are the options? Even owning your own home isn't a guarantee of a comfortable retirement when you look at the rising rates, rising insurance costs, the increase in doing any kind of repairs or maintenance because houses need to be taken care of. That all impacts on the superannuitants. People tend to think of boomers as living the life. They sell the business, they sell the farm, they retire from their high paying CEO jobs, they've got the house, the bach, the investment properties, the trips overseas. And for some that is true – that is their retirement and they've worked hard and they look forward to it, and they are living the life of Riley.

But that is not the reality for many of our older Kiwis. The vast majority are living on just the Super and they're crawling their way from payment to payment. Now the renters who are doing it tough, 80% of renters aged 65 and over are financially uncomfortable, they're worried. But even if you own your own home, as I say, that is no guarantee. You're worried about the roof that needs repairing or blocking off rooms so that you're basically living in one room to try and save on the heating costs. What are your options if you are owning your own home, if you're renting, what are the options other than relying on the government to top up your payments? Is this how you imagined your retirement would be?