Retirement pension is not enough for retirees' basic lifestyle

Retirees are increasingly in need of a basic lifestyle, but there are signs that people are leaving

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A Massey University-Westpac study shows that the gap between the national retirement pension and the cost of a basic existence has widened, with retirees increasingly relying on savings and private investments.

A single person living in a big city spends an average of $ 590.44 per lifestyle week, which is $ 200 more than the superannuation payment. Figures refer to the year ending June 2017.

A similarly-living couple in a big city spent $ 872.22 a week compared to the $ 600.30 after-tax super-pay.

The cost of such a lifestyle in the provincial areas was about $ 30 a week cheaper for a single person, but about $ 250 a week for a couple

A "no frills" lifestyle Is defined as a minimal expense for luxury items such as travel and leisure

According to the Massey School of Business, the growing gap between what pensioners receive from government and what 39 they spend is not necessarily worrying.

"The gap has at least doubled for most households, which is a significant change from previous reports. "

" But, to some extent, this reflects the fact that households are better prepared for retirement, which allows them to supplement their retirement pension to give them the lifestyle they desire " Living for retirees during the period ranged between 1.19 and 1.66%, but unlike the previous study, no group could live entirely on the national pension.

The study also showed that a lifestyle would cost a couple in a large center near $ 1,400 a week to double the level of the retirement pension and $ 872 in the provinces.

However, there was also evidence that more and more people were over the age of 65, which allowed them to enjoy a "choice" lifestyle. "It seems like getting the # 1" NZ Super eligibility does not mean stopping working for a lot, "says Dr. Matthews.

" Although this may mean a change in work patterns and styles, semi-retirement offers people options to supplement their retirement pension and save more when they stop working altogether. "