Two charities are calling for the Government to step in and help pensioners struggling to pay the rent as research shows it is getting harder for people to afford housing.
A recent Massey University study shows a single pensioner on a “no frills” budget had a weekly spend of $564.25 in the provinces and $687.84 in metro areas.
The pension for those living alone was currently $519.47, meaning receivers were often spending more than they were earning in a given week.
The study also examined how much savings on average was required for retirement.
A “no frills” retirement in New Zealand could be achieved with less than $500,000 while a more comfortable lifestyle with “choices” may require closer to $1 million.
Age Concern was now calling on the Government for a either a pension increase or a cap to be implemented on rents.
Wairoa manager Jan Little said her office had at least five walk ins a day with urgent care needs.
“I would love to see the Government make some changes. Seniors, they struggle, they really struggle and these are the people who have worked, have put into our economy.”
She suggested seniors should have a ceiling on rent or that the pension should be raised in line with rental rates.
“There should not be this big gap where seniors are having to go without making do.”
The Salvation Army’s latest rental report also called for a fairer rent policy, suggesting the amount that could be charged be capped at 30% of weekly income in lower income communities.
Principal policy analyst Paul Barber said some tenants were paying more than 40% to 50% of their income in rent and that it was “particularly challenging” for those on fixed incomes such as the pension.
“We think it’s important for that moral focus that people have the right to housing, affordable housing and ways to get there.”
The Government was not currently planning any pension specific rental fixes, but said other plans were in the works.
Housing Minister Chris Bishop said the Government was not interested in rent caps.
“They don’t work, and the economic evidence is really clear.”
Minister for Seniors Casey Costello said the Government needed to look at all housing options.
“This is the reality that we have an increasing number of older New Zealanders that are renting and that’s the fact that we need to look at those housing solutions.
“A big part of the whole aged care response is around how we deal with housing as well and these are real opportunities to do more, and I hope to be able to make some announcements on that.”
