More people expect to delay retirement as cost of living and mortgage rates bite

As rising mortgage rates and rising costs of living put economic pressure on seniors, more New Zealanders expect to have to keep working to finance their retirement.

Survey from older adults in New Zealand The survey found that many people over the age of 50 are having trouble buying essentials, and one in three working seniors is delaying full retirement due to rising costs of living and interest rates.

Even homeowners aren’t immune to retirement anxiety, with 78% of those surveyed saying they’re worried about leaving with a mortgage, according to the Working Seniors report. .

The findings mirror those of the Te Ara Ahunga Ora Retirement Commission, which found that many people are working longer because they do not have enough savings or do not fully own their own homes. said that

Forty percent of people aged 65 and over have virtually no income outside of a New Zealand supermarket, and more and more are still paying a mortgage or renting.

“Many New Zealanders don’t have enough money to retire because of the housing situation,” Retirement Commissioner Jane Wrightson said.

“Even in NZ supermarkets, nearly one in three people believe they won’t have enough money for retirement if they don’t keep working past 65.”

In 1986, 87% of people in their 60s were homeowners, paid off their mortgages, and most had no paid jobs, according to commission data.

In 2018, 80% of people in their early 60s were homeowners, but 20% were paying off their mortgages, 20% were paying their rent, and many were still working for pay.

The latest retirement spending guidelines produced last year by the Finn Ed Center at Massey University showed that retirees have been hit hard by rising inflation.

Associate Professor Claire Matthews, author of the report, said inflation could be a “huge concern” for people with fixed incomes like NZ supermarkets, as income may not grow at the same rate as expenses. said to be sexual.

“Although the CPI is measured using a specific basket of goods and services, the spending patterns of retiree households do not match the CPI basket. It may not make up,” she said.

All households included in the researchers’ modeling were assumed to have no mortgage.

But all of them required more money than the NZ Super would give. The minimum requirement was $88.16 a week for a rural household of two living “no frills.” Even in this case he would need to save $77,000.

The most needed amount was $865.93 for a two-person household in a metropolitan area with a “choice” lifestyle (including a touch of luxury). That would require a lump sum of $755,000.

Matthews said those retiring without a mortgage-free home need to understand that their spending may differ significantly from the household’s spending as outlined in the guidelines.

And while some were happy to continue working, New Zealand Senior researchers found many others were hesitant.

More than 70% felt ageism was pervasive in the modern workplace, and some reported experiencing first-hand age-based discrimination.

Ian Fraser, CEO of Seniors at Work, said the government should encourage employers to hire people over the age of 65 because working seniors add value to the workplace.

“Working seniors bring a lot of value to the workplace and tend to outperform their younger peers in several areas such as experience, loyalty, reliability and maturity,” he said.

“Many also feel they are filling the void left by younger generations who have emigrated abroad, missing out on the value they bring to workplaces with fewer older employees.”

Just as employers give an accessibility check if they hire workers with disabilities and a rainbow check if they accept diverse gender identities, Fraser says employers give people over the age of 50 a welcome check. should be given a “check”.

He said tax incentives could also apply to companies that do not discriminate based on age.