What retirement might cost in end

to supplement their superannuation. That assumed that the money was kept in a balanced managed fund.

Researcher Claire Matthews said if the money was in a bank account, more would be required while interest rates remained low. She said the guidelines showed inflation was not being felt evenly.

The consumer price index was up 1.7 per cent over the year but the cost of living for the retired households increased by less.

A one-person household with a ‘‘choices’’ lifestyle in a provincial area had their costs drop 0.45 per cent year-on-year and a twoperson provincial no-frills household had its costs lift 1.57 per cent.

The report said the drop for the single-person household was probably because of reduced food spending.

Matthews said it was important for people to consider their retirement options.

‘‘While the lump sum required to fund the difference in spending over New Zealand Superannuation can seem daunting, it can be reduced by continuing to work either full or part-time, or by delaying retirement for a couple of years,’’ she said.

‘‘If you delayed your retirement for two years, continued working and saved all your NZ Superannuation payments, it would make a significant impact to your retirement nest egg.’’

Matthews said it should be easier for people to contribute more to Kiwisaver.

She had made a submission to the retirement income policy review being completed by the Commission for Financial Capability, arguing there should be more contribution options.