Statement of Intent 2005 - Older People

High Level Outcome

Older people are valued as important members of society and have the right to dignity and security in their senior years. They have opportunities to use their skills, knowledge and experience to contribute to society.

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Context

Older people are a diverse group, and that diversity presents both opportunities and challenges for policy development and service delivery. Government needs to ensure that its services for older people meet their diverse needs and aspirations.

There are currently around 492,000 people aged 65 and over, who make up 12% of New Zealand’s population. That figure is forecast to reach 18% by 2021, and 26% in 2050, when more than one million New Zealanders will be aged 65 or over.

This increase is due to several factors: the ageing of the postwar ‘baby boom’ generation, higher life expectancy, and reduced fertility rates.

The Government plays a significant role in protecting the wellbeing of older people, particularly through the provision of healthcare and superannuation. People over 65 years account for approximately 25% of total government expenditure.

Our ageing population will face issues concerning housing, transport, health, income, and employment. This will lead to increased pressure on government services, as well as on the community sector, which provides many services for older people.

The wellbeing of older people today

The average weekly income for people aged 65 years and over is around two-thirds of the national average income. Two thirds of older people’s income comes from New Zealand Superannuation and other benefits. While older people in general have a lower average income than their younger counterparts, they have lower rates of poverty.

Employment rates for New Zealanders aged over 65 are low but steadily increasing. Currently, 15% of men and 6% of women aged 65 and over are in paid employment for at least one hour per week, with employment concentrated in the group aged under 70 years.

Studies show that older people face discrimination in various areas, including in the labour market. Prejudice from employers and younger workers has a negative impact on older people’s employment opportunities or can influence their decision to retire earlier than they need or want to.

Although the current generation of older people is less likely to have post-school qualifications than the working age population, the proportion of people in the 65 years and over age bracket with post-school qualifications is rising steadily. In the year ended March 2004, 42% of males and 25% of females aged 65 years and over had post-school qualifications.

Mortality rates for older people continue to decrease steadily. The average life expectancy across the population is currently 81 years for women and 76 years for men, though the gap has begun to narrow. There is a significant difference in longevity between the Maori and European populations. Life expectancy for Maori women is 73 years, while for Maori men it is 69 years.

A pertinent issue is that, while people are living longer and are healthier, the incidence of disability increases with age. More than half of people aged 65 years and over have a disability, with the rate rising to around two-thirds of those in the 75 years and over age group. This compares to a population average of one fifth of people having a disability.

Another significant factor related to older people’s wellbeing is keeping people living and participating in their communities as long as possible. This is assisted by the provision of affordable and suitable housing, and an appropriate transport infrastructure that provides access to health and social services, and retail areas.

Older people are a diverse population

In the 65 plus age group there are four women for every three men. In the 85 plus age group, there are twice as many women as men.

36% of the older people are between the ages of 65-69, 39% are between the ages of 70-79 and 25% are over the age of 80.

92% of over 65 year olds are European, 4% are Maori, 2% are Pacific peoples, and 2% are Asian.

Our role

To protect the wellbeing of today’s older people and to plan for New Zealand’s future older population, the Ministry:

• provides policy advice and research on retirement income and other issues affecting older people
• through the Office for Senior Citizens provides policy advice on issues affecting older people, promotes positive ageing, promotes and monitors the New Zealand Positive Ageing Strategy and provides services to the Minister for Senior Citizens
• assesses, pays and reviews older people’s entitlements to New Zealand Superannuation
• administers and implements New Zealand’s international social security agreements
• administers the Community Services Card.

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Our focus for the next three years

The ageing population presents a range of critical social policy issues for the Government to address in the short to medium term. These issues will form the focus of our work for the next three years.

We will ensure that policies and programmes reflect the diversity of the older population, and that research enables us to broaden our understanding of the implications and issues of ageing. We will also ensure that these policies and programmes reflect the aspirations of both current and future generations of older people.

New Zealand Positive Ageing Strategy

Launched in 2001, the New Zealand Positive Ageing Strategy established 10 goals, each with related key actions, as a framework for integrating policies and programmes across the government sector at central, regional and local levels. The strategy encourages older people to participate in their communities and recognises the value of their knowledge, skills and experience.

The 10 goals reflect priority issues to improve opportunities for older people to participate in the community in the ways that they choose. The goals are: income, health, housing, transport, safety and security, culturally appropriate services, ensuring rural communities are not disadvantaged, positive attitudes to ageing, employment, and opportunities for community participation.

Through our Office for Senior Citizens, we monitor and report on government agencies’ implementation of the strategy. We promote the strategy to local government encouraging their commitment to developing policies for older people in their communities. Each year we review and report on the previous year’s action plan and develop an action plan for the following year.

Elder abuse and neglect prevention services

Overseas research would indicate that between 2% and 5% of New Zealanders aged 65 and over are likely to experience some form of abuse or neglect. Combating elder abuse is identified as a critical social policy issue in Opportunity for All New Zealanders as part of its wider focus on family violence.

Following the 2003 Baseline Review of the Department of Child, Youth and Family Services, funding for the national network of Elder Abuse and Neglect Prevention Services (EANPS) is transferring to the Ministry from CYF on 1 July 2005. Funding has been secured through Budget 2005 to improve and expand EANPS to two new regions and to strengthen national co-ordination.

The misuse of enduring powers of attorney can be a cause of abuse of some older people. We are reviewing options for possible amendments to Part IX of the Protection of Personal and Property Rights Act 1988 to protect the interests of older people.

Older people’s participation in employment

Future projections for New Zealand are for continued economic and employment growth, combined with a reduction of our working-age population as our older population increases. This situation provides many opportunities for older people to continue to participate in the workforce in the ways they choose. We need to continue to reduce barriers to employment for older people.

An increasing number of older New Zealanders are continuing with part-time or full-time work after the age of 65. We will build on this trend by:

• promoting flexible workplace arrangements
• countering negative attitudes in society and among employers
• supporting older workers to access training and development
• ensuring older people receive their full and correct entitlements in and out of work.

Comprehensive and co-ordinated services

The Ministry will be assessing the way it provides services to people over 65, particularly in relation to the payment of New Zealand Superannuation (NZ Super). We will ensure NZ Super recipients receive their full and correct entitlement, and we have developed case-management processes for staff to ensure our services are responsive to older people. These new processes are supported by a training package and an internal website. We will also scope the development of a cross-government internet portal for older people. This work also supports and contributes to the State Services development goal about using technology to transform the provision of services for New Zealanders.

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Seeing results

We want to see the following results from our work, for older people today and in the future:

• older people are free from abuse or neglect and have legal protection for their financial assets
• older people have sufficient income to maintain an adequate standard of living and participate in their community, and are supported to take part in the workforce
• veterans are provided with adequate income, care and rehabilitation assistance
• older people have access to the information and services they need.

Each of our contributing outcomes is about achieving these results, and ultimately achieving our high-level outcome. As with all our outcomes, the contributing outcomes overlap and support each other.

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Older people enjoy secure and adequate incomes and standards of living

An adequate income and a good standard of living are essential for older people’s wellbeing, and for their ability to participate in and contribute to their communities.

The Ministry will be working with other government agencies to deliver a co-ordinated programme of policy and research work on retirement income. This will focus on both public and private provision for retirement.

The Ministry will also be working to implement the changes signalled in Budget 2005 concerning eligibility for the single rates of New Zealand Superannuation when one partner is in long-term residential care.

War Pension Services will continue to provide a ‘VIP’, individualised service to New Zealand veterans. This service will ensure that our administrative processes meet the needs of veterans now and in the future.

Over the next three years, our employment services will support older people who want to work, while ensuring they also receive their full and correct entitlements. We will continue to raise awareness about the importance of making private provision for retirement. We are closely involved in the development of a proposed work-based savings scheme, and we are participating in work concerning the taxation of investment income and the regulation of financial advisors.

Our work to reduce the financial abuse of older people, to co-ordinate the provision of services, to provide an internet portal to help older people access services, and to ensure those eligible receive the Community Services Card, will contribute to older people being able to access their entitlements and will provide protection for their financial assets.

Older people are able to participate in the community in ways that they choose

Many older people choose to remain active in their communities after they retire, taking on roles such as volunteers, mentors, caregivers, kaumatua, and committee and trust members.

Our ongoing monitoring and review of the New Zealand Positive Ageing Strategy will support central, regional and local governments to enable the participation and inclusion of older people in their communities. Over the next three years, we will:

• Continue to manage the Volunteer Community Co-ordinators (VCC) programme. VCC is a network of 39 volunteers who carry out projects on behalf of the Minister for Senior Citizens. Apart from specific tasks set by the Minister, they also distribute information about positive ageing actions and inform their communities about government initiatives and policies that affect older people.
• Administer the SAGES – Older People as Mentors programme, which enables older people to hand on their skills in areas like budgeting and parenting.
• Develop policies to promote ‘ageing in place’, supporting older people to remain in the communities where they are active and connected.

The impact of an ageing population on social wellbeing is anticipated and understood

New Zealand’s ageing population will have significant impacts on health, housing, and support services; on the age structure of the future workforce; on the Government’s ability to provide for retirement income; and on the need for New Zealanders to increase their private provision for retirement. Policy to address these impacts must be based on sound evidence so we can deliver robust services to support older people in the future.

The Ministry will co-ordinate a cross-government programme of research to build knowledge about how Government and the community can respond to the opportunities and challenges of an ageing population. We will also be undertaking specific research on ageing in place and on public and private provision for retirement.

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Research and evaluation

Our research and evaluation programme for older people aims to enable us to meet the challenges of our ageing population, now and in the future.

Ageing in place is a key outcome of the New Zealand Positive Ageing Strategy. We will undertake a multi-method study to explore the challenges of ageing in place for older people, and ways to meet these challenges.

We will analyse household economic survey data from 1988-2004 to explore trends in public and private provision for retirement among people aged 65 and over. This work will be completed by the end of December 2005.

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Managing our capabilities

To facilitate and co-ordinate our increased focus on older people we have established the Older People’s Network (OPN), an across-Ministry forum for co-ordinating older people’s policy and delivery.

The establishment of our new Older People’s Policy unit within our Social Services Policy Group will contribute significantly to the quality of advice we provide to Government on issues relating to older people.

In addition to strengthening our policy and research capability, we will continue to:

• build the capability of our frontline staff to understand the issues facing older people, and to provide proactive employment support
• provide New Zealanders with information about entitlements when they retire, including New Zealand Superannuation
• work towards providing a more fully integrated service to senior citizens
• build awareness of the importance and impact of current choices on future opportunities and wellbeing within the working age population including the importance of retirement planning
• ensure superannuitants and veterans receive their full and correct entitlements, with services that are accessible and easy to understand.

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Monitoring Progress

The following measures provide an overview of the current state of wellbeing for older people.

Outcome indicators

Indicators - Older People Standard of Living
Indicator	Current	Trend
Proportion of older people (65+) experiencing lower standards of living	7% (2000)	Not yet available
Proportion of older Mäori (65+) experiencing lower standards of living	26% (2000)	Not yet available
Proportion of older Pacific people (65+) experiencing lower standards of living	50% (2000)	Not yet available
Proportion of older people (65+) with net-of-housing-cost incomes below 60% of median	5.7% (2001)	Declining
Source: New Zealand Living Standards 2000, Statistics New Zealand, Household Economic Survey Note: Lower standards of living refer to Economic Living Standard Index (ELSI) levels 1-3
Indicators - Older People Participation
Indicator	Current	Trend
Percentage of older people (65+) who spend at least 2.5 hours a week in sports or active leisure	76% (2000/01)	Increasing
Percentage of older people (65+) who undertake unpaid work outside the home	17% (2001)	Unknown
Percentage of older people (65+) who participated in cultural and arts activities	81% (2002)	Unknown
Proportion of older people (65+) in the labour force	11.2% (2004)	Increasing
Sources: The Social Report 2004; Statistics New Zealand, Older New Zealanders: 65 and beyond; Statistics New Zealand Household Labour Survey, year ended December.