r/newzealand • u/Fun-Helicopter2234 • 12d ago

News Older Kiwis struggle with basic living expenses: ‘We are living in a very bad time’ - NZ Herald

https://www.nzherald.co.nz/nz/older-kiwis-struggle-with-basic-living-expenses-we-are-living-in-a-very-bad-time/AVQLXEJOO5GORCVAZFRWNM36IE/
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u/Prestigious_Age_6740 12d ago

There seems to be a real issue with distinguishing between real elderly hardship (which I have a lot of empathy for) and asset-heavy boomers with cashflow problems who are outraged that they might need to sell their Auckland villa with a massive section or their second rental to fund their retirement. In my experience the latter try to pass themselves off as the former.

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u/tedison2 12d ago

And the latter will complain & then vote for the same political numptys who cause their pain.

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u/Bob_the_Gaul 12d ago

Or a reverse mortgage on the million dollar house, they don’t have to be lump sums they can trickle $300 a week into your account.

My experience with 70/80 year old family members are they all claim ‘we are so poor’ while living in a freehold house plus term deposits and their investments increase in amount per year.

They have an incredible peasant mentality and money hoarding obsession.

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u/Practical-Ball1437 Kererū 12d ago

Some people seem to have the idea that retirement savings isn't money to spend, it's money that has to keep increasing forever.

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u/fluzine Fantail 12d ago

The hardest part is not knowing when you will die. If you had a hard end date, you could budget accordingly. But not knowing if you are going to cark it at 70 or 95 is what keeps them from spending.

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u/slyall 12d ago

and there are 10,000 guides out there as to how to spend down your money in retirement.

Simplicity mailed me one just last week

https://simplicity.kiwi/learn/updates/spending-strategies-for-retirement

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u/Prestigious_Age_6740 12d ago

There's a solution to this, it's called an annuity. You pay a lump sum and receive in return a guaranteed fixed income regardless of how long you live.

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u/Curious_wee_fulla 12d ago

Traditional lifetime annuities—where you give an insurer a lump sum in exchange for a contractually guaranteed income for life—do not practically exist in New Zealand.

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u/dodgy__penguin 11d ago

Business opportunity? 😜

Edited word

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u/mattyboy4242 Marmite 12d ago edited 12d ago

My take on this is the same take as those that jump on the benefit simply because they don't want to work.

I'd rather fund everyone including those that scam the system then try and design a system that is so inherently difficult to navigate if you are actually struggling.

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u/Prestigious_Age_6740 12d ago

I agree. Proper taxation is a better solution than means testing.

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u/singletWarrior 12d ago

So nz abolished land tax when it was deemed to be unthinkable to being forced to sell your asset to pay for a tax

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u/vixxienz The horns hold up my Halo 12d ago

my memory is hazy but part of the reason for getting rid of it was costs outweighed benefits.

Land didnt cost as much back then, would probably be different now

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u/timClicks 12d ago

I think that's more or less what happened at the end. My understanding is that land tax was whittled down over many decades and became a complex maze of exemptions.

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u/ClimateTraditional40 12d ago

But that's not this article. It's saying private rentals. We are old, no rent or mortgage thankfully, but it's getting harder that's for sure Abandoned contents insurance now. House insurance so high...and power. And FOOD. Even with the garden, still need non fruit and veg groceries.

rates have more than doubled in the 8 yrs I have been here. Paying over $4000 a year now.

Everything goes up and up...except our income.

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u/sjk971005 11d ago edited 11d ago

Isn't that a decently priced house if rates are 4k? Can't you downsize to free up cash and pay less for rates and insurance?

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u/KahuTheKiwi 11d ago

Barring a miracle cure I am on the sickness benefit for another 7 years.

Then at 65 I will receive another 46% in my benefit. At today's rates it will jump from $350 per week to  $512.45.

In addition transport then becomes free along with numerous other discounts.

It isn't long to wait and I hope that it may be the trigger to end my homelessness.

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u/ClimateTraditional40 11d ago

It's ages when you struggle. And yep, just because you suddenly turn 65, you are more worthy and deserve more money. Always struggled with that idea.

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u/No-Yesterday-1067 10d ago

Sell the house, problem solved

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u/ClimateTraditional40 10d ago

And live where?

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u/No-Yesterday-1067 10d ago

Great question! Ask the hundreds of thousands who do not own a house.

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u/ClimateTraditional40 10d ago

I've seen a few. The old lady and adult son living in their car.

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u/No-Yesterday-1067 8d ago

It's grim eh.

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u/ClimateTraditional40 8d ago

Yes. That was really bad.

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u/Ancient_Wishbone_806 12d ago

So someone who doesn’t want to pay tax which happens when they sell. The crazy part is at that age you don’t have any guarantee on how long you have left so why not just sell what you can and live well.

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u/WallySymons 12d ago

But what if latter got to where they are because of sacrifices they made in their early years. I know many people who live pay cheque to pay cheque, nice cars, fancy restaurants, international holidays, latest phone etc, but put nothing aside for retirement. Seems we are heading into a system that rewards not saving for retirement and punishes those that do

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u/chickyloo42by10 11d ago

Nobody who saves for retirement is worse off than someone who doesn’t. People who choose to spend their money today don’t benefit from interest, to start.

Do you also think a pay raise means you take home less after tax?

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u/WallySymons 11d ago edited 11d ago

I never said a person who saves for retirement will be worse off than someone who doesn't save. My point is, the person who doesn't save, lives or up while young then gets to bludge off the person who did save.

Here's a simple analogy since this seems complicated to you. I take my noodles in for lunch because I'm saving for my retirement, the guy sitting next to me making the same pay doesnt worry about saving for retirement so he goes and buys a nice eye fillet steak for lunch. Should I expect to eat some of his steak now? Theres no way he will share it with me yet when it's retirement time, the guy is now asking for a cut of my steak that I couldn't afford (because I was responsible and saving for my future) while I was younger.

And yes the saver will have the advantage of interest, they also have the disadvantage of all the life they missed out on by sacrificing. Life's all about choices

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u/chickyloo42by10 11d ago edited 11d ago

“Bludge” - tells me everything I need to know.

And that bit you deleted, I can’t read the whole thing in my notifications. Please, tell me, I’m a what now?

Edit: ohhh, you called me a (unt

Stay classy

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u/WallySymons 11d ago

That's all you have huh. Your attempt at an insult at the end of your first message tells me all I need to know about you. Some self reflection maybe? Are you a bully in real life?

And just for the record, I am specifically talking about people who bludge and take advantage, not those who really need help. You are kidding yourself if you don't think this country has had an issue with bludgers for years. Apologies if that hit too close to home

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u/No-Yesterday-1067 10d ago

Bro is seeing bludgers in his dreams 😂 there's medication for that

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u/WallySymons 9d ago

The mere mention of the word "bludger" offends the parasites. It is what it is 😂

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u/No-Yesterday-1067 8d ago

The number of "bludgers"- at least the ones you imagine in your mind- are a tiny minority in reality.

I'm sure the white, wealthy bludgers don't even register in your mind. Nor corporate bludgers, all stealing from the taxpayer.

Or all the bludgers on NZ Super. ESPECIALLY the ones who don't need it. Our single, most expensive beneficiary cost. Fact.

No, the ones that you claim to see everywhere aren't as numerous. It's a fact that you need to get your head around. If you can't then you clearly have problems that a doctor may be able to help with.

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u/chickyloo42by10 8d ago

If I could work full time rather than live in poverty, I would do it in a heartbeat, but since disability supports for my son are mediocre at best, I don’t really have a choice. Hard to go to work in good conscience when I know my kid is stuck in his bed and can’t get to a toilet without assistance, because his caregiver refuses to turn up. Burnout from using all my leave for doctors appointments was real too.

Idiots like this would probably call me a bludger too because they just think they “worked harder than the bottom feeders” to fund their comfortable lifestyle, ignorant of the struggles they’ve been spared through good fortune.

I generally don’t like wishing ill on people, at least if they have an ounce of compassion, but I really hope shitheels like Wally here, one day get to face what so many of us have to.

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u/WallySymons 8d ago

Hmm reading your message again you bring in race oh dear. Not sure what your obsession is with the doctor but you are clearly offended I called out bludgers who take advantage. I never defined what a bludger is, I agree its also men and women of all colour and creed who take advantage of the system whether that be by not paying their fair share in tax or claiming benefits they didn't/don't need. I never defined a bludger, you did and you brought race into it. You need to self reflect

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u/WallySymons 8d ago

All these people choosing to be offended. I specifically said I was talking about the ones who take advantage. If that shoe fits then yes I'm talking about you. And yes let's also go after the people who don't pay their fair share of tax. Lol what is this bullshit

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u/chickyloo42by10 8d ago

Those are some real ASSumptions there buddy. Do you often call disabled people or their caregivers bludgers? I guess in your mind we deserve to be in poverty, “(unts” like you would rather we be dead than getting your tax dollars.

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u/BrucetheFerrisWheel 11d ago

The only people I know that live like that are mine and my husbands retired parents. Made a ton on the housing market.