A single person living alone got $519 in the pension per week. Photo: Yuri Arcurs / 123RF
An 80-year-old woman who has agreed to pay her landlord an extra $100 a fortnight for the next 45 fortnights to clear her rent debt is one of a growing number of struggling pensioners, budgeting advisers say.
The woman was before the Tenancy Tribunal recently, owing $4489 in rent arrears for a Clover Park home.
Her landlord wanted to terminate the tenancy, but she argued she should repay the debt instead. She was paying $510 a week in rent and had been renting the property since October 2023.
A single person living alone got $519 in the pension per week.
She told the tribunal she was prone to being forgetful and had undergone two significant surgeries on her arms since the beginning of the tenancy,
"More recently, the tenant has had two prostheses put into her arm. The tenant submitted that she had found it difficult to remember to pay her rent with so many medical and physio appointments to remember as well," the tribunal adjudicator noted.
"To address these issues of forgetfulness and poor management, the tenant has organised an automatic redirection of rent from her superannuation. The tenant said that this was 'the best thing I've ever done' at the hearing. She has also established a strict budget, details of which she provided to the tribunal. The tenant advised the tribunal that she could afford to pay a further $100 per fortnight towards the arrears."
The adjudicator said it was unlikely that she would fall behind on rent again, but issued a conditional termination notice - which meant the tenancy would be terminated if rent was more than two working days late.
Shirley McCombe, general manager of Bay Financial Mentors, said times were "very tough" for those on superannuation.
"From the amount being charged, I'm assuming this woman is in a private rental as opposed to social housing... she may be entitled to an accommodation allowance, but if she lives alone that will be $185.00 at the most. It is very tough for people who only have their NZ Super as income, and for those in private rentals, it is even harder."
Jake Lilley, spokesperson for Fincap, said he heard from financial mentors who were "horrified" at the difficult financial situations they had encountered older people living in.
"These are mostly rooted in the limitations of a fixed pension income for those who do not outright own a home."
About 13 percent of households with people over 65 were paying off a mortgage, and an additional 20 percent still renting. The Retirement Commission expected the latter could double by 2048 to more than 600,000 people.
Financial mentors also noted that there was likely a lot of hidden hardship for older people, Lilley said.
"They observe that older people will go without essentials like winter heating for much longer periods of time before they reach out for support, compared to other age groups."
One financial mentor recently told a Fincap report older people were a "huge portion of growing need".
"There are a lot of people who just suffer and sit in the dark and don't make a noise."