That is the finding of new research from Massey University.

It finds superannuitants' costs are going up faster than other people’s costs. 

That is because spending patterns for superannuitants differ from society at large. 

The goods and services that elderly people buy are often mismatched with the goods that are used to calculate the Consumers Price Index (CPI), creating a significant differential. .

The research is done every year by Massey university’s Fin Ed Centre, and aims to work out much money people need on top of their NZ Super to get by.

This sum is usually large, and is even larger for the year til June 2022. .  

For example, a couple living an active life in a big city would spend on average $1578.15  a week in costs.  .

Slightly less than half of that money would be made up from the pension, meaning a high level of savings would be needed to provide a couple with a rich, active retirement. 

These findings are similar to those of recent years and have only changed in degree. 

But there was a difference this year: a CPI of 7.3%.

“For people on a fixed income, such as those receiving NZ Superannuation, inflation can be a huge concern,” said the author of the report, Associate Professor Claire Matthews from the Massey Business School.  

But there was an extra kicker: even higher inflation for superannuitants than for the general public. 

“CPI is measured using a particular basket of goods and services, but the expenditure patterns of our retired households don’t match the CPI basket,” Matthews said.

“That means the NZ Superannuation adjustments may not fully compensate for the increased costs.”.

The CPI rose 7.3% in the year til June. But living costs for seven of the eight classes of elderly people surveyed by the Massey academics rose by higher levels than that, one rose just 7.17% but the other seven rose faster, peaking at 9.10%.

That was because of retired people's disproportionate exposure to specific costs that surpassed the average growth of all costs.  .

For example, transport costs were weighted at 12.37% of the CPI,  but five of the eight groups of elderly people measured in this study had expenditure on transport higher than that number.  

There was a similar story for spending on households and utilities, along with recreation and culture.

Matthews said it was important for New Zealanders still working to plan ahead for these difficulties.

“Retirement is a significant life change,” she said.  

“Without the right preparation and planning, it can be hugely challenging to achieve a certain way of living retirees may aspire to. This is where making mindful spending choices can help.

“It’s also important to think about where funds are invested, and engage with a financial advisor who can help with navigating a high inflation environment.”

The Massey team has done this research for several years. It puts retired people into several groups.

At one extreme is a couple, living in the big city, with a taste for lattes and trips to the theatre. At the other extreme is a single person, living off bread and marmite in a remote rural community.  

The costs rose for all these groups. 

And they rose at a higher rate than inflation for all classes of retired people except a couple living a simple life in a provincial region.  

A single person living a full life in the provinces incurred the biggest gain in costs: 9.10%.

The amount of money that had to be saved up to meet these costs reached a peak of $755,000 for a couple living a full life in the big city.  

That would provide a supplement to the pension from both earnings and drawdown of the principal.