More older people than ever are supplementing their pensions with self-employment, figures released yesterday by Statistics New Zealand show.
In the three months ending June, 7.5% of people aged 65 and older were propping up their pensions with self-employment, compared to 6% at the end of June last year.
At the year ended June, the number of people receiving income from government transfers increased 3%, the 65 and older age group being the main contributor.
Median weekly income from government transfers increased by $8, or 2.8%, to $288 in the quarter. The increase was mainly influenced by adjustments to superannuation (2.65%) and to main benefits and student allowances, which came into effect on April 1.
The New Zealand Income Survey for the June 2012 quarter showed no significant increase in income from all sources since the previous corresponding period.
Between the two June quarters, median weekly income for all people, from all sources, did not rise significantly: up 1.8% from $550 to $560. Although there was little overall change, income increased for the 20-24, 60-64 and 65 and older age groups.
There was little annual increase in median weekly income from wages and salaries for those receiving that sort of income, up $6, or 0.7%, to $806.
That was the smallest change in median weekly income since the June 1999 quarter.
Green Party co-leader Metiria Turei said when adjusted for inflation, median household weekly income was down 6% since National became the Government in 2008.
"Living costs continue to rise while incomes are falling behind. When you look at households, their incomes are not keeping up with the rising cost of living."
Since 2008, median household weekly income had risen 3.7% while the cost of living had risen 10.1%, she said.
Raising the minimum wage to $15 an hour was part of the Green Party's plan to take 100,000 children out of poverty by 2014.
"We urgently need to raise the minimum wage to $15 an hour and lock in future increases to ensure that working families can make ends meet," Mrs Turei said.
Council of Trade Unions economist Bill Rosenberg said the Statistics NZ figures were further confirmation of the hardship many families were facing.
"On top of stagnant incomes, continued high unemployment levels, with continuing news of layoffs, are making it difficult for many people to make ends meet."
The survey showed increasing dependency on benefits and Working for Families, understandable in the present economic environment, he said.
Within the figures, another indication of inequality was emerging. While median weekly income from wages and salaries rose insignificantly to $806, one of the few reported significant increases was the average weekly income, which rose 2.7% to $922.
"This indicates that those on higher incomes are receiving larger income increases than people on lower incomes. The Ministry of Social Development's Household Incomes Report, released in August, showed an increase in inequality in 2011. It looks like we had another increase in the income gap in 2012," he said.
