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\nThe number of older people in work is projected to be 477,800 by 2074 (file image).
\nPhoto: 123rf\n<\/p>\n
Older New Zealanders are contributing to a structural economic shift through increased work, tax, and spending, according to a new economic study.<\/p>\n
The report from the New Zealand Institute of Economic Research found population ageing was happening faster than expected.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Self-employment income was reported to be worth around $5b.<\/p>\n
The number of older people in work was projected to increase from 217,400 in 2024 to 477,800 by 2074.<\/p>\n
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.<\/p>\n
More people were relying on accumulated assets, which was set to rise from $14.2b to $104.7b.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
“Understanding this shift will be essential for sound policy, business decision-making, and long-term planning in the decades ahead.”<\/p>\n
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.<\/p>\n
NZIER acknowledged its modelling sought to value the income of the older workforce, but not issues affecting potential or performance.<\/p>\n
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.<\/p>\n
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\nMinister for Seniors Casey Costello.
\nPhoto: RNZ \/ Samuel Rillstone\n<\/p>\n
Minister for Seniors Casey Costello said the report quantified in economic terms how big the contribution of seniors was.<\/p>\n
“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.”<\/p>\n
Costello said understanding how ageing was reshaping the economy meant governments could make better decisions on how to support them to continue to contribute.<\/p>\n
“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.<\/p>\n