A new independent survey commissioned by NZ Compare has found that cost-of-living pressures are a top concern for New Zealanders aged 50 and over.
49% reported they are struggling or finding it harder to manage their finances, while 85% acknowledged experiencing some degree of financial concern.
Although many older Kiwis are facing difficulties, the survey reveals they often do not look for better broadband deals. Instead, they stick with their current providers for years, despite rising prices, potentially costing them up to $50 extra each month.
30% reported they have not changed their broadband provider in over five years, while 25% said they pay more than $100 per month for their service. 46% of survey participants confessed they don’t know the actual speed they are paying for, making them vulnerable to “speedwashing”, which pushes consumers to buy more expensive plans and faster speeds that they likely don’t require.
“Broadband prices have risen regularly over the last five years, yet our survey findings show older New Zealanders are among the least likely to switch providers to access a cheaper plan,” NZ Compare chief executive Gavin Male said.
“With one in two older Kiwis saying they are struggling financially, this leaves many exposed to being at risk of costly ‘loyalty penalties’, whereby long-term customers end up paying more than they need to compared with new customers.”
“Businesses often reserve their best deals for new sign-ups and customers, while loyal users who are less likely to switch are left paying rates that cost more or stuck on packages that don’t reflect their needs. Furthermore, price increases are still occurring even when consumers have agreed to a price for a fixed-term contract.”
“Switching and shopping around – just like you would for a new kettle – is the best way to get a competitive price,” Male added.
Nearly one-third (32%) of the respondents feel that changing providers is too troublesome, 39% prefer the convenience of sticking with their current provider, and 36% stay loyal because they’ve used the same provider for many years.
“People often think switching is a hassle – but the reality is it’s quick and easy,” Male said.
“With the right tools, and prices of broadband very likely to rise again next year, you can compare plans online, find a better deal, and make the switch with minimal effort. The result adds up to hundreds of dollars a year back in your pocket or in your bank.”