We all pay the same price. When New Zealand introduced decimal currency in 1967 it was on the basis of 2 dollars for 1 pound, so incomes and prices are bound to look higher in NZD terms.Gulp! That sounds like a lot of money to me. If I double it to get an approximate NZD equivalent it is not far short of one week's income for me.
£169.99 is close to the £185.15 received by a recently-retired UK pensioner who qualifies for a FULL pension (many don't). The basic pension for people of my age is much lower, but some of us qualify for supplements based on higher contributions during our working years.