Current Issues

Cost of Living Impact on Retirees

To address the growing poverty and hardship amongst our older seniors reliant on NZS as their income in retirement, Grey Power recommends that a number of Government Policy areas need to be urgently adjusted to ensure our older people are able to live their later years in dignity.

Grey Power recommends:

Recognising that a significant proportion of retirees dependent on NZS alone, and with cash reserves under $45,000, are frequently unable to live with dignity and mana in their retirement. The following solutions are recommended to provide urgently needed more targeted support: -

  1. Urgently review and increase the Accommodation Supplement maximum rates to better reflect the increases in median rental rates over the past 5 years and provide an annual review and adjustment.
  2. Urgently increase the cash asset level for the Accommodation Supplement eligibility to match the level allowed for those in social housing.
  3. Index the annual winter energy payment by the cost of living increase each year.
  4. Reduce the tax burden on those who are struggling most with the rising cost-of-living by considering options such as removing GST on food, a lower, or zero rate of tax on the first $10,000.
  5. Increase the household income threshold for the Rates Rebate Scheme an amount equal to that of the NZS couple’s pre-tax income. Consider setting the maximum rebate to at least 35% of the median NZ residential rates (Regional + Territorial Authority).

Read more on the Background and Evidence

Maintaining NZ Super benefits

Our position and recommendations for the future direction of NZS are summarised as follows:

Read more about our recommendations >

Healthcare Priorities

Watch this space