Life on the pension: Super by the numbers

The twilight years are supposed to be relaxing and enjoyable but for a growing number of New Zealanders, they are a financially stressful time.

Retirees are among the most affected by the increasing cost of living, and more New Zealanders are heading into retirement with significant debt.

For those trying to get by on NZ Super alone, the battle can be a steep uphill one.

So how would you fare? Here’s what the numbers tell us about life on the pension:

$1470

Massey University’s most recent Retirement Expenditure Guidelines, released last year, said a couple retiring in the city – and allowing for a few luxuries and treats – would have an average weekly spend of $1470.

A single retired person would spend $1029 a week.

Living a ‘‘no frills’’ lifestyle – with few, if any, luxuries – reduces the estimated weekly spend to $865 for a couple and $726 for a single person.

A study of KiwiSaver balances shows many people retiring today wouldn’t have a hope of surviving on their savings alone.

$48,457

Data gathered by the Retirement Commission shows women aged 61-65 have an average KiwiSaver balance of $48,457 while men in the same age bracket have an average of $61,606 in retirement funds.

$49

On those numbers, a 65-year-old woman would have an average of just $1938 a year or $37 a week available from her KiwiSaver fund, assuming she lived to 90 years old. A man retiring today at 65 would have $2464 a year – $47 a week – until the age of 90.

And few retirees have any other income to rely on.

40%

Forty per cent of people aged 65 and over have virtually no other income other than NZ Super, according to Te Ara Ahunga Ora the Retirement Commission.

Another 20% have only a little more and, even with the pension, about a third don’t expect to have enough for retirement unless they continue to work past 65.

$463

A retired couple living together currently receive superannuation of $712 a week after tax (at the M tax rate), while a single person living alone gets $463.

Adding on the average amount retirees can expect to draw from their KiwiSaver, a couple would have a total of $796 a week at their disposal.

A single man would have $510 a week and a single woman would have $500.

$674

If you thought the super rates made for grim reading, the shortfall between Massey’s estimated expenditure and what the average pensioner can expect to have is even more gloomy.

A couple collecting NZ Super, cashing in their KiwiSaver and living with a few luxuries in the city would have a weekly shortfall of $674.

A single man would be $519 short and a single woman would have a shortfall of $529 a week.

Those who opt for a ‘‘no frills’’ retirement would still come up short, with a couple needing an extra $69 to cover their weekly expenses, a single man needing $216 more and a single woman falling $226 short.