Source: Radio New Zealand
The number of older people in work is projected to be 477,800 by 2074 (file image). 123rf
Older New Zealanders are contributing to a structural economic shift through increased work, tax, and spending, according to a new economic study.
The report from the New Zealand Institute of Economic Research found population ageing was happening faster than expected.
NZIER’s latest Business of Ageing report for the Office for Seniors used official population and labour force projections to track the economic contribution of people aged 65 and over.
It found people aged 65 and over made up a larger share of the workforce than at any point since the Business of Ageing series began in 2011, with their paid work valued at nearly $9 billion a year.
Self-employment income was reported to be worth around $5b.
The number of older people in work was projected to increase from 217,400 in 2024 to 477,800 by 2074.
Earnings from paid work was projected to rise from $8.7b to $50.2b by 2074, but more than half of this ($29.3b) was expected to come from self-employed income.
More people were relying on accumulated assets, which was set to rise from $14.2b to $104.7b.
Older people’s tax contributions were also set to rise sharply, as both incomes and population numbers increased, and their consumer spending was projected to grow from $54.7b to $357.7b.
“These projections show that population ageing represents long-term structural economic change, with effects that go well beyond fiscal settings, shaping labour markets, household incomes, spending patterns, and community life,” the report said.
“Understanding this shift will be essential for sound policy, business decision-making, and long-term planning in the decades ahead.”
However, the report also found the value of unpaid activity (such as caregiving, volunteering, and household work) exceeded $20b a year, and unpaid work was predicted to reach between $121b and $138b by 2074.
NZIER acknowledged its modelling sought to value the income of the older workforce, but not issues affecting potential or performance.
It pointed to existing reports around physical and mental wellbeing, issues around succession, retirement, and ageism, and reports that suggested a growing number of senior entrepreneurs would shift the value of remuneration towards the self-employed.
Minister for Seniors Casey Costello. RNZ / Samuel Rillstone
Minister for Seniors Casey Costello said the report quantified in economic terms how big the contribution of seniors was.
“Older people are also contributing through taxes, spending and investment, and importantly, through unpaid work that often goes unrecognised. That work is not just economically valuable – it strengthens our social fabric, supporting families and sustaining community organisations and services.”
Costello said understanding how ageing was reshaping the economy meant governments could make better decisions on how to support them to continue to contribute.
“A key takeout is that New Zealand needs to think a lot differently about the older workforce and how to utilise its skills and provide opportunities for the increasing numbers of over-65s who will be in work,” she said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
