Skyrocketing inflation will still wipe out some retirees' pay rises despite superannuation being adjusted to the consumer price index (CPI), according to experts.
The annual CPI was steady at 7.2 percent in the December quarter, well above the Reserve Bank's inflation target range of between 1 and 3 percent.
Superannuation payments are based on inflation and, based on the December quarter CPI, retirees will receive an estimated 7.2 percent increase when it's revised on April 1.
However, research by Massey University has found the increase won't cover retirees' cost of living.
"Unfortunately, even though it's going to be a nice healthy increase at 7 percent - it's not going to be enough to keep up with the prices that retirees generally spend on," explained Gareth Stythe, a private wealth adviser for Milford Asset Management.
"Retirees have a different set of expenditures compared to the general population.
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"[Massey University] notes that retirees tend to spend a higher proportion on food, transport and recreation - and those three groups of items have been increasing at a faster rate than general inflation," Stythe told AM Early.
He said New Zealand's retirees should write a budget and plan for what's ahead, with the country tipped to plunge into recession.
"For people who are thinking about retiring… I think it's important for them to revisit their goals and use the tools that are available such as digital advice that many platforms have, or also a financial adviser they could engage to find out if they're on track and, if they're not, make some changes."
Overall, Stythe said planning was important - given each retiree has different circumstances.
For example, the Massey University research estimates couples living an urban "choices" lifestyle - a more comfortable standard of living - will need a retirement savings pot of $755,000. That compares to couples living a "choices" lifestyle in a rural area, who will need $480,000, the research suggests.
"It is important to look at your own circumstances," Stythe said.
