There could be a new crisis on our hands with the possibility of retirees becoming homeless.

The Salvation Army has issued a report that suggests only 62 percent of Baby Boomers who retire in 2025 can expect to own their homes. That's compared with 2011 figures estimating 77 percent would own homes.

The report's writer Alan Johnson said the Government hasn't reviewed its housing allowance for ten years, and is concerned they haven't factored in the cost of living.

“There are tens of thousands of these people – we’re not talking a few dozen – facing that chance and we think that should be of some concern to the Government and New Zealanders.”

Labour's housing spokesperson Phil Twyford said the report raises concerns. He said it’s possible to live a good life with a pension income, but usually only if your home is mortgage free.

“If you’re living on super in a private rental, particularly in the expensive housing markets, it can get very, very tough.”

He said councils need the Government help to reinvent pensioner housing, and prevent a crisis.

“[They need] a low maintenance secure, one or two bedroom home close to the shops with good mobility access and, most importantly, that’s affordable.”

Social Housing Minister Paula Bennett said it’s not easy if you’re paying commercial rent out of a pension, but said there are “additional payments” from the Government that can help with that.

She also questioned some parts of the report.

“Look it certainly is valuable, but there were some things in it and I thought ‘wow, this one just feels like it’s stretched a bit far and has added one plus one and has come up with six in some places’.”