'Poverty' for baby boomers

Fairfax Media

GLOOMY: Baby boomers could end up living in poverty if the Government does not urgently address issues of income, housing and health, according to a study.

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Baby boomers could end up living in poverty if the Government does not urgently address issues of income, housing and health, says a study published today.

The study into the wellbeing of the elderly, carried out by Waikato University's Family Centre and Population Studies Centre, surveyed 1680 people aged 65 to 84. It found that, though 88 per cent were "satisfied" or "very satisfied" with their lives, their wellbeing was largely dependent on home ownership and superannuation.

That did not bode well for the baby-boomer population as they headed into retirement, researcher Charles Waldegrave said.

"With home ownership rates dropping, and uncertainty about the future affordability of New Zealand super, providing for a growing elderly population is one of the country's most pressing issues."

The Government's decision to suspend payments to the Superannuation Fund for at least the next decade was "foolhardy". "It's not a problem in the next three years while they're governing, but it's a huge problem long-term."

The over-65 population was expected to double from 12 to 26 per cent by 2051. "What our research shows is that 48 per cent live on superannuation and no more than $5000 per annum, so they're totally dependent on superannuation. That's why I think it's so important that we continue contributing to the superannuation fund now."

The Government should also put in place policies to reverse the trend of declining home ownership among baby boomers and even younger generations, he said.

"If careful planning and consideration is not given to these issues, ageing baby boomers will end up living in poverty."

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