Government needs to plan now to avoid bleak future for New Zealand’s baby boom generation

8 October 2009

Many of New Zealand’s older people could slip below the poverty threshold during the coming decades, a social policy expert has warned.

Charles Waldegrave, social policy analyst and researcher, was speaking at the Age Concern New Zealand/New Zealand Association of Gerontology conference, Living in an Ageing Society - Shaping Tomorrow Today.

Mr Waldegrave has jointly led New Zealand’s first national study into ageing and wellbeing, using a random sample of 65-84 year olds. He says findings show New Zealand’s next generation of older people could face major financial difficulties.

“Ageing is a critical driver in the demographic changes taking place in New Zealand over the next decades.  Currently, the majority of older people depend on NZ superannuation for their wellbeing - 48 percent of study participants were found to have incomes of superannuation plus five thousand dollars or less per annum. 

“Older New Zealanders also have very high levels of homeownership.  NZ Super is just enough to keep people out of poverty if they have low housing costs.   The combination of mortgage-free homes and universal superannuation has been critical in preventing many of them from dipping below the poverty threshold.”

He warned that the combination of decreasing levels of home ownership and the decision to withhold payments into the NZ Superannuation Fund pose a serious threat to the future wellbeing of older New Zealanders.

From 2011 onwards, post-war baby boomers will begin moving into the 65+ age group. This means the population of older people will double from 12 to 26 percent over the next few decades.

Mr Waldegrave believes these issues need to be planned for and addressed now, both by national and local government.

“The Government needs to plan for these changes to prevent major problems in the future. The issues of sustainable income adequacy and ongoing contributions to the NZ Super Fund need to be addressed. Affordable housing and a sustainable and accessible health service are also critical factors.

“Local government also needs to look at how it can support the baby boom generation further down the line. Sustainability of social, community and home based services, urban planning that allows easy access to amenities, and reliable and safe transport services are just a few of the issues to be considered.

“The need for forward planning, widespread public debate and consultation with older New Zealanders is essential to ensure a decent quality of life among older New Zealanders in the future.”

ENDS

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