Baby-boomer economic dominance to continue

Older people’s economic contribution increasing

Projections on the economic contribution our ageing population will make over the next four decades show older people will have a more positive impact than previously thought, Senior Citizens Minister Jo Goodhew says.

Mrs Goodhew today released the Business of Ageing: 2013 Update. The report updates research released in 2011.

“The report highlights the huge economic potential our ageing population provides. Employers should be thinking about how to retain their older workers given their excellent knowledge, skills and experience,” says Mrs Goodhew.

“The updated projections show 31 per cent of people aged 65 and over will be in the labour market in 2031, up from 19 per cent in 2011.  They are projected to make up 12 per cent of the labour force by 2031, compared with around five per cent in 2011.

“The projections show the older population will spend about $60.28 billion in 2051, up from $13.5 billion in 2011. Their total tax paid will be $15.62 billion by 2051, compared with $3.48 billion in 2011.

“In addition those aged 65 years and over represents a consumer group numbering 1.2 million by 2036.

“Our older population currently makes a huge contribution through their unpaid and voluntary work. The value of this work will increase from $6.58 billion in 2011, to a projected $25.65 billion in 2051,” says Mrs Goodhew.

Mrs Goodhew also released Older New Zealanders: Healthy, Independent, Connected and Respected today which summarises current support and services for older people.

To see the report or the update, visit www.msd.govt.nz/about-msd-and-our-work/publications-resources/research/business-of-ageing/index.html