Federation president Jan Pentecost said it was pleased to note the Government was investing $3.1million over four years to continue implementing the Te Tari Kaumatua, Office for Seniors Better Later Life (He Oranga Kaumatua) strategy, and an increase in the dental health grant.
However, it was disappointing the cost-of-living package excluded vulnerable older people on national superannuation.
It acknowledged the Government increased superannuation by $52 a fortnight for a single person and $80 for a couple in April, but that was a catch-up, not an increase, she said.
"Many of these people assisted in the construction of underlying infrastructure and paid high taxes to help build the New Zealand of today and to leave them behind now in their declining years is unconscionable."
Grey Power Otago president Jo Millar said at this stage there was no benefit directly to senior people.
The amount of money allocated to health appeared to be of considerable help but much of it was over a four-year period and there seemed to be no immediate remedy to the problems occurring for nurses and carers in the age-care and home-help areas regarding pay and staff shortages.
"These are the people who we all lauded during the last two years but words do not compensate for shortage of trained personnel nor the inadequate wages they receive."
Help and assistance for older people would be when staffing was at a level where carers could do their work without the stress of clock-watching to get to the next client or working the night shift with insufficient trained staff on duty, she said.
Minister of Finance Grant Robertson said the Government had provided significant increases for those on income support.
"For a single person on the benefit they have had a 46% increase since Labour came into office and over 22% since just last year."
New Zealand superannuation rates increased by $52 per fortnight for single superannuitants living alone, and by $80 per fortnight for a couple.
The resumption of the Winter Energy Payment from May 1 provided superannuitants and those on income support at least $80 per month from the beginning of May until the end of September.
"In the Budget we have expanded the range of people who are being supported for cost-of-living pressures to include those earning up to $70,000 who have not received the targeted support on April 1 and May 1."
