Calls for higher New Zealand pension rates grow as cost of living squeezes retirees
Consumer groups and retiree associations in New Zealand have called for an increase in the state pension, arguing that benefits are not keeping up with cost-of-living inflation, RNZ reported. Housing, food and energy costs are forcing retirees into budget cuts. The government said it will review the social security formula.
New Zealand's Consumer Council and the Grey Power retiree association have called on the government to act, arguing that the state pension is not keeping up with cost-of-living inflation. According to figures cited by RNZ, households over 65 spend on average 38% of their income on housing, 21% on food, and 11% on electricity.
The Statistics Office said the cost-of-living index has risen 17.4% over the past three years, while the social security formula has only adjusted by 12.1%. About 880,000 New Zealanders receive the pension, equivalent to 17% of the population. Many retirees say they have had to return to part-time work.
The Minister of Social Security said the government will review the formula but noted that fiscal constraints may limit the scope of any change. Treasury sources indicated that any pension uplift would be tied to the 2027 budget round. The Labour opposition has called for an immediate increase.
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