Cost of living and rent spikes hit pensioners who don't own homes

For seniors who do not own their own homes, the cost of living and rent spikes are eating into their incomes and sense of security.

But throughout New Zealand, a small number of accommodation providers are offering affordable, independent living for retirees.

There are 14 Abbeyfield residences - each one providing units for up to 14 single pensioners. They would otherwise be forced to pay market rents, flat with strangers, or rely on family for accommodation.

It was a situation many over 65s face, with about one in four living in accommodation they do not own. 

At Palmerston North's Abbeyfield, a huge lounge and dining area welcomes visitors. This is where its 12 residents gather for lunch.

The residents' units, which include bathrooms, and are furnished as they please, are along corridors off the shared area.

Retired radio broadcaster Russell "Rusty" Harris has lived at Abbeyfield for about three months.

In his mid-80s Harris, a well-known voice on Manawatū airwaves for decades, previously lived alone at a rental where he paid below market rents, but it was not suitable due to his mobility problems.

"For me it was a big adjustment. I worked on my own. I do a lot of writing. When I came here it was quite a major adjustment, but it was all for the better," he said.

"You're with an interesting group of people - very diverse - but you still live your own life. It's the best of every world. As it says in the brochure, it's flatting for seniors."

Single pensioners get about $990 in superannuation a fortnight, not including additional payments such as winter energy assistance, and it does not stretch far.

"You just make the one payment a week or a fortnight [at Abbeyfield] and that covers everything, so it takes a lot of the stress out of your life with regards to paying the power or anything like that," Harris said.

"That's where the stress comes in - what have you got left? What can you buy or what have you got to take off the shopping list? But here you know exactly how much surplus that you have every week."

Abbeyfield Palmerston North charges about $850 rent a fortnight. That includes food, power and internet.

It goes up each year as the pension increases, but always leaves enough for residents to live off.

Speaking ahead of the election, Harris said he would like to see the government contribute towards more accommodation for seniors, such as Abbeyfield houses.

"The costs of living here will not exceed your superannuation, which they do stress. It's a wonderful alternative that would have enormous appeal because older people don't necessarily want to be in one of the big flashy places with all the amenities."

Another resident, who did not want to be named, agreed.

"The biggest thing they could do is come and listen to us," she said of politicians.

"Come and visit Abbeyfields. See how they run on the smell of an oily rag, and put their hand into their pockets and help us financially." 

The woman, who is in her mid-70s, has lived at Abbeyfield for almost seven years.

"I was living with my daughter and it was time for me to make a change. 

"I didn't want to go flatting. I'd had enough of that so I got online and I looked at some other places and then I saw this one."

Abbeyfield does not provide care like a rest home, and residents have to move on if they cannot look after themselves.

For now, the resident said she was happy coming and going as she pleased, and choosing when to be with others and when to be alone.

This helped keep a vital sense of independence, but with security, of tenure and for safety.

"I look at it as all of our rooms are our homes and the corridors our street. You don't talk to everybody in the street.

"Here you talk to everybody because you're at the table at lunchtime, but you don't invite everybody in the street into your house."

She said she would not be able to survive if she had to pay market rents.

"I'd have to live with one of my children. I wouldn't be able to afford it and I'm good with money, budgeting and that. 

"I want to have a life."

Abbeyfield Palmerston North has only three paid employees - the cooks. One is full-time and two work part-time.

The house, on Vogel Street, is run by a committee of volunteers, including house manager Katrine Imrie.

"The people here, they come here for security," she said.

"They come here for companionship. As they all say, they don't know where they'd all be now, especially the ones that have come from rented [accommodation].

"We had a woman a few years ago. She's been in a rental home for over 20 years and it was sold because the people moved on and she couldn't afford the going rent in the city. 

"Luckily we had a place for her here.

"The elderly, a lot of them have actually got nowhere to go, and if you're on a pension and you're having to pay $500 a week for rent that gives you nothing." 

Residents' rent goes towards the mortgage, and community trusts, such as the Central Energy Trust, Pub Charities, Olive Tree trusts and the Lion Foundation, provide much-needed money for other projects.

Imrie said Abbeyfield Palmerston North opened in 2009, after 10 years of hard work fund-raising. It was built by the army.

"I'd hate to see that we didn't have places like this for people who just can't afford life as it is at the moment.

"You hear of elderly that can hardly get food because their rent's so high, but we just would like politicians to visit Abbeyfields around he country, see what we do, see what the costings are, see how happy people are."

Imrie said long-term, sustainable government funding for construction costs would be a massive boost for Abbeyfield, as they paid for themselves once open.

Abbeyfield New Zealand estimates its accommodation saves millions in aged-care subsidies.