Older people
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Older people play an important part in the lives of New Zealand families and communities. They provide care and support for children and other family members. A growing proportion is active in the labour market. As New Zealand’s population continues to age, we will increasingly depend on these contributions. We need flexible policies and services that address older New Zealanders’ diverse needs and to encourage their ongoing participation.
Our 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 and knowledge and experience to contribute to society.
Context
Like many member countries of the Organisation for Economic Co-operation and Development, New Zealand’s population is ageing. Today one in eight New Zealanders is aged 65 or older. By the middle of this century that number is projected to increase to one in four. Such a shift in the country’s age profile is largely due to a combination of low birth rate and low mortality.
Older people are important members of our society and their skills, knowledge and experience provide an invaluable resource. Many older people are in paid employment. Many are involved in voluntary work, including providing care and support for children and other family members. Our ability to tap the resources that older people provide, by enhancing their opportunities to participate in society in the ways that they choose, will be critical for ensuring social and economic development.
What we do
- provide policy advice and research on retirement income and other issues affecting older people
- promote positive ageing, promote and report progress on achieving the New Zealand Positive Ageing Strategy objectives
- provide income security for our superannuitants and veterans in and outside of New Zealand
- administer the SuperGold Card, Community Services Card and the Residential Care Subsidy
- fund services to reduce the incidence and impact of abuse and neglect of older people
- ensure effective engagement with older people and their organisations.
The following diagram shows what we will do to achieve our high level outcome for older people.
How the Ministry improves outcomes for older people
| What we are trying to achieve | How we do it |
|---|---|
| Older people to have sufficient income |
We do this by:
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| Older people free from abuse and neglect |
We do this by:
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| Older people to be supported to live independently |
We do this by:
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| Older people to have the choice to undertake work, education or training |
We do this by:
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| Older people in crisis or emergency to be supported |
We do this by:
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Over the next three years…
We will build responsive services
In the context of the Government’s priority theme of families – young and old, we will ensure policies and programmes reflect the needs of older New Zealanders.
Currently, we invest a quarter of all government expenditure in older New Zealanders. Our service delivery to older people needs to be flexible and responsive to a diverse range of needs. We are in the process of reviewing our services to ensure they meet the needs of older clients both now and in the future. This includes improving how we work with other agencies in providing services that help people to live independently.
The Government announced the SuperGold Card in November 2006. The SuperGold Card will replace the Super Card and Community Services Card for those aged 65 years and over. It will provide tangible benefits to cardholders by providing easy access to government concessions and services as well as discounts from businesses.
We are currently establishing a dedicated website and directory to promote the available concessions and discounts and to provide information on government services for older New Zealanders.
We will encourage contribution and participation
Central government agencies have been prioritising the development of policies and programmes that improve the lives of older New Zealanders since the launch of the New Zealand Positive Ageing Strategy five years ago. The Office for Senior Citizens is responsible for working with central government agencies, and a growing number of local authorities, to develop action plans under the Strategy’s 10 goals. The Office is also responsible for reporting on the progress made to Parliament.
Helping to inform the development of many of the policies and programmes contributing to those action plans is the Office’s national network of Volunteer Community Co-ordinators. These co-ordinators distribute information about positive ageing activities, inform their communities about government initiatives affecting older people and act as a sounding board.
We will build the financial stability of older New Zealanders
New Zealand Superannuation is the primary source of income for most older people. It is currently the only form of income for more than half of those aged 65 and over. The Government’s commitment to adjust New Zealand Superannuation annually helps ensure that older people continue to receive an adequate income.
Access to New Zealand Superannuation and Veteran’s Pension entitlements affects a small but significant proportion of older people in choosing where they live. Approximately a quarter of older people were born in another country and numerous New Zealanders have lived or worked overseas. Many older migrants wish to retire in their home countries, and many expatriate New Zealanders wish to retire in New Zealand. Over the next three years we will implement a package of measures that will further improve the opportunities for superannuitants and veterans to retire in the country of their choice.
For most older people the equity they hold in their homes is the major part of their wealth. More and more, older people are using home equity conversion schemes to access that wealth and supplement their income. Recognising the wide range of conversion schemes available, we are pursuing an open and transparent process to develop a code of practice for these schemes.
We will improve protections for older people
Though elder abuse and neglect is a relatively hidden issue, international surveys indicate that 2-5 per cent of older people may experience psychological, emotional, sexual, physical and financial abuse at some time. Our ongoing funding of Elder Abuse and Neglect Prevention services will continue the focus on reducing the incidence of elder abuse and neglect, and increasing public awareness.
The Office of Senior Citizens is working to amend the Enduring Powers of Attorney provisions in the Protection of Personal and Property Rights Act 1998. The changes will help prevent abuse of vulnerable older people and people with disabilities from occurring and provide better access to legal remedies where abuse under the Powers is suspected. The proposed code of practice for home equity schemes will additionally provide financial protection.
How we will measure cost-effectiveness
Our outcomes for older people focus on them receiving appropriate entitlements to avoid undue hardship and their being supported to live independently.
Living standards for older people
A wide range of factors affect the living standards of older New Zealanders. However, we have a key role to play in delivering social assistance to those who are less able to support themselves by ensuring that they access all of the entitlements that they are due.
In 2006/2007, the Ministry spent approximately $37 million on services to seniors. In the same year we delivered $6.4 billion gross in New Zealand Superannuation payments. We also delivered a wide range of assistance to older people with accommodation, disability and other special needs.
Our 2004 Living Standards Survey showed New Zealand Superannuation and other social assistance to be effective in keeping older New Zealanders out of poverty and in maintaining their relativity with other New Zealanders. Levels of poverty experienced by older New Zealanders are generally much lower than those in comparable Organisation for Economic Co-operation and Development countries. Our ability to monitor effectiveness in addressing older people’s living standard levels will be dependent on the frequency and comparability of Living Standards surveys.
Independent living
Through paying New Zealand Superannuation and soon, delivering the SuperGold Card, we have regular contact with almost all older New Zealanders. This connection provides a platform to both deliver and broker services that can support the continued participation and independence of older New Zealanders in their communities.
We are currently working closely with health sector providers to develop a new service model to provide more effective services to promote independent living among older New Zealanders. Services delivered or brokered by the Ministry will complement community health and disability services to provide co-ordinated and accessible services to older New Zealanders in their communities.
The effect of strategies to support older New Zealanders to stay in their homes and communities will be fewer people moving, or moving later, into subsidised long stay residential care. From a cost effectiveness position the cost of support interventions would be offset against possible reductions in government support through fewer people needing long-stay residential care.
During the coming year we will liaise with the Ministry of Health to determine whether we can develop a joint outcomes approach. This will involve investigating the cost of residential care to the state, families and individuals, and comparing this with the cost of services to reduce the incidence of residential care. We aim to develop methodologies that will collectively measure overall effectiveness.
Monitoring progress
| Indicators – older people standard of living | ||
|---|---|---|
| Indicator | Current | Trend |
| Proportion of older people (65+) experiencing lower standards of living | 8% (2004) |
Steady |
| Proportion of older Ma-ori (65+) experiencing lower standards of living | 14% (2004) |
Steady |
| Proportion of older Pacific people (65+) experiencing lower standards of living | 32% (2004) |
Steady |
| Source: New Zealand Living Standards 2004. Unpublished analysis from the 2004 Living Standards Survey. | ||
| Proportion of older people (65+) with net-of-housing-cost incomes below 60% of median | 6.4% (2004) |
Declining |
| Source: Statistics New Zealand, Household Economic Survey, unpublished statistics derived by Ministry of Social Development. Note revisions to Household Economic Survey data changed the figure reported in the 2005 SOI to 6.5% from the originally reported 5.7%. | ||
| Source: New Zealand Living Standards 2004; Statistics New Zealand, Household Economic Survey. Note: Lower standards of living refer to Economic Living Standard Index 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 | 55% (2005) |
Unknown |
| Sport and Recreation New Zealand Continuous Monitoring Data Note: New source so no trend this year |
||
Percentage of older people aged 65 and over who undertake unpaid work outside the home |
38% (2006) |
Increasing |
| Source: Statistics New Zealand Census Of Population and Dwellings, unpublished analysis | ||
| Percentage of older people (65+) who participated in cultural and arts activities | 81% (2002) |
Unknown |
| Source: Ministry of Social Development (2005) The Social Report 2005, p97. Data from Statistics New Zealand’’s 2002 Cultural Experiences Survey. | ||
| Proportion of older people (65+) in the labour force | 12.6% (2006) |
Increasing |
| Source: Statistics New Zealand, Household Labour Force Survey, annual average for year ended December. | ||
| Sources: The Social Report 2005; Statistics New Zealand, Older New Zealanders: 65 and beyond; Statistics New Zealand Household Labour Survey, year ended December. | ||
