Source: New Zealand Government
The latest Business of Ageing report shows older people are increasing their contribution to New Zealand’s economy through paid work, running businesses, taxes, spending, and unpaid care, Seniors Minister Casey Costello said today.
“Everyone with parents and grandparents knows about the incredible contribution of our seniors,” Ms Costello says.
“This report quantifies, in economic terms, how big that contribution is. Paid work by people aged 65 and over is now valued at nearly $9 billion a year, with a further $5 billion coming from self-employment.
“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.”
The report shows:
- The value of unpaid work by older people has passed $20 billion a year
- Paid work by people aged 65 and over now contributes around $9 billion a year
- Self-employment adds a further $5 billion a year
- Seniors pay more than $13 billion in tax annually
- Annual consumer spending by over-65s is close to $55 billion
“While these are significant figures, the Business of Ageing Report also looks ahead and forecasts how these numbers grow as our population ages, reshaping the workforce and the economy over the coming decades,” Ms Costello says.
“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. As more New Zealanders live longer and stay active, the number of older people in work is projected to more than double over the next 50 years.
“Nearly half of those aged between 65 and 69 are currently in the workforce and this participation rate – as well as that for 70–74-year-olds, is forecast to increase.”
The Business of Ageing report was prepared by the New Zealand Institute for Economic Research (NZIER) for the Office for Seniors and is part of a series that has been in place since 2011. It was last updated in 2023.
“This information matters. If we understand how ageing is reshaping our economy and our communities, we can make better decisions about how to support people to continue to contribute and to live well as they age,” Ms Costello says.
“Older people are a vital and growing part of New Zealand’s workforce, economy, and communities and the Government’s policies must reflect that reality.”
The Business of Ageing report is available at: www.officeforseniors.govt.nz/businessofageing
