Food price rises hit older people – Age Concern

Age Concern New Zealand Media release

16 February 2009

Age Concern New Zealand is calling for Superannuation adjustments to cope with rocketing food inflation.

New Stats NZ figures show food prices went up by almost ten percent last year. That means that New Zealand's older people have even less to put on their tables, Age Concern New Zealand national president Liz Baxendine says.

"People are telling me they can't stretch their budgets any further."

The top rate of Super (for a single person living alone) pays $298 a week after tax or $15,500 a year. Couples and people sharing get even less.

"Could you live on $298 a week?" asks Liz Baxendine. "That's much less than the minimum wage."

"Super only provides for a basic standard of living, and last year things got worse. Older people are suffering more than the overall inflation rate shows. The basics of many seniors' household budgets – food, energy and rates – are all rising faster than the CPI."

Superannuitants are waiting anxiously for a cost-of-living increase, expected in April.

"It's usually too little, too late," Liz Baxendine says. " Cost-of-living adjustments are paid up to a year behind price increases so any extra has already been spent, and then we're faced with the next round of price rises.

Age Concern is calling for Super to be increased to the level already allowed for under existing legislation. This would mean an extra $15-$20 per week.

Age Concern also wants a move to quarterly rather than annual backwards-looking adjustments to help people on Super keep up with price rises and be able to budget more successfully.

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