Expenditure patterns of New Zealand retiree households

Trinh Le and Euan Richardson ()
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Euan Richardson: Motu Economic and Public Policy Research

No 23_07, Working Papers from Motu Economic and Public Policy Research

Abstract: This paper uses household-level data from the New Zealand Household Economic Survey from 2006/07 to 2018/19 to examine expenditure patterns of retiree households. We find that in 2018/19 retiree households spend on average $55,700 per annum, of which 13% is on groceries, 19% on housing, 14% on other necessities (household utilities, communications, and insurance), and the remaining 54% on discretionary expenses. Household expenditure patterns differ significantly across demographic groups and income levels. On average, singles living alone spend $30,700 per annum whereas couple-only households spend $65,100 per annum. As retiree households age, they spend less, especially on discretionary categories such as clothing, transport, and recreation and culture. We find that subjective wellbeing is higher for retiree households who have higher qualifications, own their home, have higher incomes, live with their partner and have no dependent children, and is the lowest for rent-paying renters, single retirees living with others and M?ori households. Retiree households are more likely to report having adequate income for every-day needs and being satisfied with life and less likely to report financial strain than pre-retirement households.

Keywords: Retiree households; expenditures; retirement (search for similar items in EconPapers)
JEL-codes: D12 J14 J26 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2023-08
New Economics Papers: this item is included in nep-age and nep-des
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