{
  "id": 5373251,
  "title": "Why renting retirees might be better to save nothing if they don't have $200,000",
  "url": "https://urgent.news/2026/09/03/why-renting-retirees-might-be-better-to-save-nothing-if-they-dont",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T17:12:36.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/personal-finance/1250869/why-renting-retirees-might-be-better-to-save-nothing-if-they-don-t-have-200-000"
  },
  "original_language": "en",
  "account": "Retiring and choosing to rent rather than save money may be the wiser financial decision for some New Zealanders who do not possess at least $200,000 in savings. According to Shamubeel Eaqub, Chief Economist at Simplicity, renters without the requisite savings are likely to fare better by foregoing the rent if they lack the necessary funds. The accommodation supplement, intended to aid with housing expenses for lower-income individuals, requires a low asset threshold of $8,100 for single individuals and $16,200 for couples or sole parents. However, this asset limit has remained unchanged since the supplement's inception, leaving many renters unsure about the optimal course of action.\n\nEaqub's calculations suggest that a renter would need approximately $200,000 saved, disbursed over a 25-year period, to counterbalance the loss of the accommodation supplement. During the previous year, the number of those receiving New Zealand Superannuation and the accommodation supplement surged to 48,789, up from 47,223 in December 2023 and 34,279 in December 2019. Eaqub stressed the need for a more adaptable system to accommodate future retirees' evolving needs, proposing a tiered approach instead of a rigid cutoff point.\n\nEaqub also advocated for a more streamlined eligibility process, suggesting the Australian system's deemed rate of return as a practical solution. The Australian method simplifies income and assets into a single income test for the Age Pension, making it more efficient. However, this approach could increase the AS program's cost, as more individuals would be able to access it. Eaqub warned that the availability of the accommodation supplement is not guaranteed, leaving renters reliant on its continued existence.\n\nTeresa White, General Manager at ACBC Financial Mentors, acknowledged that the cash asset limit prevents some renters from accessing the supplement but emphasized the need for fairness in the system. With more individuals entering retirement without owning their homes and renting instead, the cash asset limit may need regular reassessment. The tension between savings and the cash asset limit could be more pronounced for low- to mid-income workers with limited savings or those who supplemented their income via New Zealand Superannuation and KiwiSaver before retirement.\n\nIn such cases, the KiwiSaver scheme could step in to compensate for the missed accommodation supplement, but it would still not suffice to fully offset the lack of savings. Consequently, having savings—even if they need to be used to cover basic expenses—remains a prudent choice. Ultimately, the decision to rent or save in retirement will depend on individual circumstances and should be carefully considered in consultation with Work and Income. The Ministry of Social Development's Graham Allpress advised individuals to seek guidance to determine their eligibility for various financial support programs before making significant decisions.",
  "summary": "New Zealand's current settings mean renting retirees who do not have at least $200,000 saved may be better off to have nothing.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}