PHOTO: LIZ MCDONALD/STUFF To avoid consigning people to a lifetime of renting and financial hardship in retirement, the commissioner suggests letting people buy an investment property in another cheaper region with their KiwiSaver fund.
OPINION: Retirees who own their own home are generally able to live with more financial comfort than those who are renting.
It’s not rocket science – if you’ve paid off your mortgage while working, then your accommodation costs in retirement are close to zero, apart from a bit of necessary spending on rates, insurance, and maintenance. Over time, renters tend to become even more disadvantaged because rents often rise faster than incomes.
At $411 per week for a single person, NZ Superannuation is clearly not designed to support retirees who are renting. In fact, the Waitomo District is the only place in the country where average weekly rents would not take more than half a person’s superannuation.
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