Cover of the BIM

Part 6: Aligned portfolios - supporting the contribution of Older New Zealanders

Role of the Minister Responsible for Senior Citizens

The Minister responsible for Senior Citizens has a whole of government advocacy role on behalf of older people, particularly in relation to policy development and decision-making. This supports positive ageing and the wellbeing of older New Zealanders in a range of areas including retirement income, employment, housing, transport, ageing in the community, disability support, community and voluntary sector involvement, and the protection of older people’s rights and interests.

Office for Senior Citizens

The Office for Senior Citizens acts as a focal point within government for information and advice on issues affecting older people and their wellbeing, based on sector engagement and good practice. The Office has three full-time staff, headed by the Director of the Office for Senior Citizens. A wider policy team within the Ministry provides support.

The Office promotes and supports engagement between agencies and older people across government, and provides independent and second-opinion advice to agencies. It also promotes international and local examples of leading practice to improve outcomes for older people.

Current issues and trends

Older people are working longer and are healthier, wealthier and better educated

New Zealand’s population is slightly younger than the OECD average as our fertility rates have remained higher over successive decades. Our population is, however, ageing.

Traditional concepts such as working age, retirement age and dependency ratios are becoming blurred. The older population itself is also becoming more diverse. Segmenting society into age groups is less appropriate today. We need to take a life-course perspective – people who lead full and successful lives in their younger years will take this success with them into their older years.

Making the most of population ageing involves both addressing the challenges and maximising opportunities

Economic growth, improved productivity and international competitiveness over the coming decades will rely heavily on the contribution of all New Zealanders, including older New Zealanders. Employers will need to recruit, retain and up-skill older workers. By 2051, it is projected that older consumers will be spending around $60 billion per year7, offering opportunities for business to expand in both existing and emerging markets.

The ageing population will have a significant impact on the health system and on supports to allow older people to remain in their own homes for longer. We need to be in a position to support people to remain independent.

Sustainable urban development and planning are required to meet the needs of the ageing population. Accessible, appropriate and affordable housing, public transport and community facilities, as well as the use of technology to support social connectedness, are all areas that both central and local government need to recognize in current planning.

New Zealand Positive Ageing Strategy

Creating a vision for a society where everyone can age positively, where older people are highly valued and recognised as an integral part of families and communities

The 2001 New Zealand Positive Ageing Strategy promotes an inclusive, healthier and wealthier society for older people, which in turn benefits all New Zealanders. In 2013, the Minister for Senior Citizens released Older New Zealanders: healthy, independent, connected and respected. This document builds on the Positive Ageing Strategy and reaffirms the 2001 vision, goals and principles for positive ageing. It provides a summary of current actions being taken across government to shape the future for older New Zealanders and to deliver on the vision in the Positive Ageing Strategy. The strategy focuses on 10 goals:

  • secure and adequate income
  • equitable, timely affordable and accessible health services
  • affordable and appropriate housing options
  • affordable and accessible transport options
  • older people feel safe and secure and can ‘age in the community’
  • a range of culturally appropriate services allows choices
  • older people living in rural communities are not disadvantaged when accessing services
  • people of all ages have positive attitudes to ageing and older people
  • elimination of ageism and the promotion of flexible work options
  • increasing opportunities for personal growth and community participation.

The next report on the implementation of the strategy is due in late 2014. We are keen to begin discussions with you on this report.

New Zealand Carers' Strategy Action Plan

There is a growing demand for family and friends to provide care in the community, alongside, or instead of, funded service providers

Many carers of older people are themselves older adults and play a vital role in supporting older people to live in their own homes for longer. Substantial commitments to caring can, however, have a marked impact on the health, wellbeing, employment and financial security of the carer.

The New Zealand Carers’ Strategy was launched in 2008. It aims to improve support for family, whānau and carers and was developed through a partnership between government agencies and the New Zealand Carers Alliance, representing more than 40 not-for-profit organisations. A new five-year action plan was launched in early 2014.

The strategy contains five priority areas for actions focused on carers’ needs – encouraging them to take breaks, protecting their general health and wellbeing, keeping them informed and improving pathways to employment. It also focuses on increasing awareness and understanding of the role carers play in our communities.

Recognising and enhancing the contribution of older New Zealanders

There is more to demographic change than simply focusing on the increasing expenditure on superannuation and health care

Older people are skilled workers, volunteers, carers, taxpayers and consumers. It is projected that older people (people aged 65 or over) will:

  • make up 12% of the labour force by 2031, up from around 5% in 2011, with around 31% of older people engaging in paid work
  • pay total tax of $15.27 billion by 2051, up from $3.48 billion in 2011
  • contribute an estimated $25.65 billion in unpaid and voluntary work by 2051, up from $6.58 billion in 20118.

Between now and the mid-2030s, continuing increases in labour force participation by older New Zealanders – and the resulting increase in tax revenue from paid work and consumer expenditure – could make a substantial contribution to funding the increasing cost of New Zealand Superannuation. These factors could also increase the purchasing power of older consumers.

There is, however, a risk that this potential economic contribution will not be realised in full. There is a role for government, employers, the business sector, communities and people of all ages to ensure the ageing population contributes to increases in productivity, economic growth and living standards.

The Office for Senior Citizens supports the ageing workforce by highlighting the critical role that older workers will play in addressing labour market issues. It also promotes flexible work opportunities and addresses the assertion that older workers simply take the jobs of younger workers. There are significant opportunities for businesses to target this growing market and to enhance the SuperGold card to increase value for cardholders and businesses.

Innovating to deliver more effective services for older New Zealanders

International experience shows that integrated service delivery is the most effective and efficient strategy in meeting the needs of a growing and increasingly diverse older population. The Ministry is leading the Future Service Delivery for Older New Zealanders work programme, which takes a collaborative approach to the design and delivery of services in partnership with the private sector, communities, non-government organisations and older people. It aims to improve older people’s access to relevant, effective services, improve outcomes for those who have limited choices and who are more vulnerable to economic and social isolation, and focus on up-front investment to reduce future needs and costs.

The Ministry is well placed to lead collaboration on initiatives that support older New Zealanders, as 94% of older people engage with the Ministry as recipients of New Zealand Superannuation, Veteran’s Pension or another social security benefit. In April 2014, this connection was strengthened with the transfer of the social housing assessment function to the Ministry, allowing a more holistic assessment of a person or family’s support needs.

The first report on this work is due by December 2014.

Improving labour market attachment and resilience for those aged over 46 is important for ensuring resilience and wellbeing in their older years

People who are struggling at this age have a poor outlook for their older years. Improving resilience and wellbeing through a focus on the potential economic contribution of those aged over 46 (and the economic loss associated with non-contribution) offers opportunities to strengthen outcomes. Initiatives to improve rates of participation in paid work, and other economic contributions such as volunteering and caring work, may be justified.

Changing the attitudes of employers and other workers towards older workers in the workplace is an incremental process, but change will be needed as skill and labour shortages begin to bite. There will, however, be benefits for employers that make this shift earlier, as well as benefits to the wider economy. There are opportunities for the Government to lead through its own actions as an employer.

Research indicates that between 3% and 10% of older people suffer abuse and neglect in New Zealand every year

Elder abuse and neglect shares many similarities with other forms of family violence. It can be in various forms - physical, psychological, sexual or financial. It can also take the form of intentional or unintentional neglect. The majority of abusers are family members.

The Ministry part-funds specialist elder abuse and neglect prevention services to prevent or reduce the incidence of abuse or neglect through direct assistance to older people, their families and carers, and public, professional and family education. There are currently six contracts covering the delivery of these services in 26 locations throughout New Zealand.

Family members are generally very important to older people, as they are often the main social contact and support that person receives. For this reason, the elder abuse and neglect prevention services work to strengthen family relationships while putting measures in place to keep the older person safe and enhance their wellbeing.

Approximately 10% of older people lack important social connections or relationships with others

Social isolation and loneliness can lead to poor mental and physical health and increased need for health and social services. The Ministry is undertaking work to measure and identify social isolation among older people. This includes measuring and identifying social isolation to improve understanding of the issues, identifying options to address social isolation, and reviewing information and training for those working with older people and their families in government and community organisations.

This work is being informed by pilot projects such as Napier Connects. This is a collaboration of community leaders that, with support from local and central government, aims to encourage older people to connect with their community.

Increasing the knowledge and use of enduring powers of attorney protects the rights of older people

The review of the enduring powers of attorney (EPA) provisions in the Protection of Personal and Property Rights Act 1988 found that the 2007 amendments have been mostly effective in providing better protections for people. The review found that further changes are needed to achieve the right balance between protecting people and making EPAs accessible. This includes simplifying some of the forms and processes to make setting up an EPA more straightforward.

An information campaign is currently underway to increase awareness among the general public on what an EPA is and the value of having one in place sooner rather than later. The Campaign also aims to increase understanding of the roles and responsibilities of people named as an attorney for someone else.

Footnotes

7: This impact on the economy is expressed in 2011 dollars, adjusted for the expected real growth in the value of wages between 2011 and 2051.

8: This impact on the economy is expressed in 2011 dollars, adjusted for the expected real growth in the value of wages between 2011 and 2051.