New report shows economic power of seniors

A new report has highlighted the economic influence of older people in New Zealand, Senior Citizens Minister Maggie Barry says.

The 2015 Business of Ageing report update has projected older New Zealanders will make an even bigger contribution to the economy than previously thought.

“Seniors put billions of dollars into our economy each year, and their importance will only grow as our population ages,” Ms Barry says.

“By 2035, there will be 1.2 million people aged over 65 – almost double the current figure of 650,000.”

“In future they will stay in the workforce longer, give more of their time to the community, and become a powerful consumer base. Seniors are a positive force for change and should be seen as such.”

In National Volunteer Week, the report notes the major impact seniors have as volunteers.

By 2051, seniors will be contributing $35 billion in unpaid and voluntary work, up from around $8.5 billion in 2011.

“Too often we hear our ageing population described as a burden. That attitude is objectionable and completely wrong, as this report shows.”

“Many of the volunteer organisations which help families and enrich communities across the country rely on senior’s dedication and commitment.”

Seniors will spend around $65 billion a year in 2051, up from $14 billion in 2011, and pay total tax of $17 billion, up from $3.6 billion.

The Business of Ageing report was first published in 2011 and was last updated in 2013.

The latest update will complement the 2014 Report on the Positive Ageing Strategy and highlight the economic potential of New Zealand’s ageing population.

Both reports can be read at www.osc.govt.nz