More money announced for pensioners the 'bare minimum' - Age Concern

March 14, 2023

The organisation's Auckland chief executive Kevin Lamb says the Government needs to target those most vulnerable. (Source: Breakfast)

More money announced for pensioners is the "bare minimum" according to Age Concern Auckland chief executive Kevin Lamb.

Yesterday the Government announced pensioners will see their payments rise by 7.22% in line with inflation from April 1. Under the changes, a couple on NZ Super would receive $103 more in total a fortnight, and a single person living alone receive an extra $67 with each payment.

Speaking to Breakfast this morning, Lamb said the Government needs to target the most vulnerable New Zealanders.

"There are a lot of older people who are struggling desperately financially, they were before the cost of living and it's got worse during the cost of living.

"What this has done is taken them back to what was a very difficult starting point. It's good news but it's simply not enough."

Retirement.

He said it's about spending the money smartly and putting money in the pockets of those who need it most.

"There's probably a subset, probably 15-20% of older people, who really, really struggle and they're the people we need to get the support to."

Asked if he's talking about means testing, Lamb said New Zealand hasn't reached the tipping point yet where it would need to be introduced.

"The difficulty with means testing is can you do it effectively in a cost effective way that actually makes it worth doing.

"I think when we can look at our older population and say that so, so many of them are comfortably off, we can afford to means test but in New Zealand that's not the case.

Chris Hipkins announced the changes as part of the Government's response to the rising cost of living. (Source: 1News)

"Many old people still struggle and I think anything that's going to cost money, take money away, such as a very complicated process of means testing, isn't going to be the answer."

He said there are simpler and more effective ways of ensuring people get the help they need and then superannuation doesn't have to keep going up at the rate it is currently.

Also speaking to Breakfast this morning, Green Party co-leader Marama Davidson said the party welcomes yesterday's announcement but it's "not enough".

"We'd like to see it be a permanent rise that is in keeping with the cost of living or wage increases, whichever is highest."

Yesterday Prime Minister Chris Hipkins said the changes are part of his continuing focus on "bread and butter" priorities amid what's shaping up to be a tight election year.

He added it would "mean approximately 1.4 million New Zealanders will not go backwards" as they "feel the bite from the rise in the cost of living".

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