Cost-of-Living Squeeze Hits Pensioners, With Some Turning to Foodbanks to Survive

A growing number of pensioners in New Zealand are struggling to keep up with rising living costs, with some now relying on foodbanks to meet basic needs.

A recent report by Good Shepherd highlights increasing financial strain, particularly among women over the age of 65 who depend solely on NZ Superannuation.

Although NZ Super increased by 3.1 percent this year in line with inflation, the rise has not matched the sharp increases in essential expenses such as housing, fuel, and utilities. As a result, many older individuals are finding it difficult to maintain a basic standard of living.

Housing Costs Driving Financial Hardship

One of the most significant challenges identified in the report is housing affordability. Many older women reported spending more than half of their weekly income on housing alone, leaving little for other essentials like food, healthcare, and transportation.

The report also found that housing insecurity is not limited to renters. Even homeowners face rising costs due to insurance, maintenance, and property-related expenses. For single pensioners, these pressures are even greater, as they must manage all costs on a single, fixed income.

This situation has been described as a “single person penalty,” where living alone—while essential for safety and independence—comes with higher financial burdens.

Everyday Sacrifices and Health Impacts

To cope with limited income, many pensioners are making significant lifestyle adjustments. These include heating only one room, reducing food spending, shopping at discount stores, and even going to bed early to save on electricity.

While these strategies may help stretch budgets, they often come at a cost to health and wellbeing. Limited heating, poor nutrition, and financial stress can have long-term consequences, particularly for older individuals.

As noted by Good Shepherd’s policy lead, Brittany Goodwin, there comes a point where budgeting alone is no longer enough. When income does not meet basic living costs, even the most disciplined financial management cannot bridge the gap.

Foodbank Use Among Older Adults Rising

Data from The Salvation Army shows a gradual increase in the number of people over 65 seeking food assistance. In the past year alone, 1,793 individuals in this age group accessed food support, including 859 women.

The proportion of pensioners using foodbanks has also risen slightly, reflecting broader cost-of-living challenges. While NZ Super remains a crucial safety net, it is no longer sufficient for many households facing rising expenses.

Limited Savings and Financial Security Concerns

Financial experts warn that without additional savings, such as KiwiSaver, many pensioners face a difficult financial future. According to budgeting advisors, a single person may need between $180,000 and $355,000 in savings to maintain even a basic standard of living in retirement.

For those without mortgage-free homes or significant savings, reliance on additional support such as accommodation supplements becomes necessary. However, accessing affordable housing and financial assistance remains a challenge.

The Need for Broader Solutions

Experts agree that the issue goes beyond simply increasing NZ Super payments. The problem is deeply tied to housing affordability, limited income growth, and structural inequalities such as the gender pay gap, which affects women more significantly over a lifetime.

Programs aimed at supporting older women with housing costs are being tested, including initiatives that help cover upfront rental expenses or provide access to small loans. However, long-term solutions will require coordinated efforts across multiple systems, including housing, social support, and financial policy.

Conclusion

The rising cost of living is placing increasing pressure on pensioners in New Zealand, with some now relying on foodbanks to survive. While NZ Super provides essential support, it is not keeping pace with the growing cost of essentials, particularly housing.

Addressing this issue will require more than short-term financial adjustments. A combination of improved housing affordability, targeted support programs, and broader policy changes will be needed to ensure older individuals can live with dignity and security in retirement.

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