The cost of living crisis is hitting older New Zealanders hard, according to new research, which shows nearly half of over-50s are finding it harder to cover essential expenses than a year ago.

In addition, seven in 10 are increasingly concerned that rising costs are affecting their financial security.

The Silver Dollar Report 2026, commissioned by New Zealand Seniors Insurance in partnership with consumer research group MYMAVINS, surveyed more than 500 New Zealanders over 50 about how they are spending their “silver dollar”.

The report said financial pressures were forcing difficult decisions, with 41% of older New Zealanders having to choose between paying for one essential or another in the past year. Many have cut back on necessities such as clothing (59%), food (57%) and personal care items (54%).

The survey paints a clear picture of the everyday impact of inflation.

Groceries are by far the biggest pain point for the vast majority of those over 50 (80%), causing nearly three in five (57%) to seek out cheaper grocery brands.

Meanwhile, rising utility and power bills are the second biggest financial worry for two in three (66%), leading to almost half (46%) reducing their heating and power use at home.

Comfortable retirement is out of reach for most

These pressures are also reflected in retirement planning.

The report found 60% felt their total retirement savings were inadequate, including 33% who felt their savings were very inadequate.

This concern was highlighted by recent figures from the Retirement Commission, showing the average KiwiSaver balance at the end of 2024 was about $37,000.

For those still working, 58% expected they might need to work longer than planned, despite the ideal retirement age for 42% being between 65 and 69.

The fear of outliving savings was a significant issue, with 39% very or extremely concerned about running out of money in retirement.

The majority (84%) defined this as not being able to cover essentials without financial stress.

The bank of mum and dad

The Silver Dollar Report 2026 findings also highlighted the immense financial support older New Zealanders provide, showing that 49% of those over 50 were financially supporting younger generations, with 11% going into debt to help children and grandchildren.

Levels of support range from $5000 to $20,000 or more in the past year, most often to help cover essentials such as groceries, one-off payments, or household bills.

Housing and care

Many older New Zealanders are also actively considering their future housing and care needs.

While 26% are considering a major housing decision, such as downsizing, in the next decade, affordability is a key factor.

The ability to afford aged care is a barrier to planning to 55% of people, understandable as residential care can cost up to $80,000 annually.

— Allied Media