Home > Our Publications > New Zealand Outlook > 2001 > September

MOST older people in New Zealand have a pretty good life. They generally have enough money (certainly for basic needs) are able to get out and enjoy themselves.
This is partially due to Government social security payments flowing to the aged over recent years.
A Ministry of Social Policy report suggests that government funding has inexorably shifted over the past 30 years from the productive age group to retirees.
A study of 7000 retired, Maori and working Kiwis has found the elderly are doing quite well. In fact, they're materially better of than those in the workforce aged 18-64. About 5 per cent of retirees were found to be struggling; another 5-10 per cent had difficulties.
Those finding life hardest, say the researchers, are those on the lowest incomes with few savings, high accommodation costs, a history of redundancy, divorce or separation, Maori or Pacific Island ethnicity, and a work record of low-status jobs.
A common image of the elderly is a negative one, of people in penury waiting to die. That is clearly not the case. A majority have comfortable, productive and enjoyable lives.
Social Services Minister Steve Maharey says the report breaks new ground in setting a measure for material well-being that goes beyond incomes and spending to look at how older people are living, what they own and what they do without.
And, he says, the Government agrees those who can afford to save for their own retirement must be encouraged to do so. Which brings the issue of superannuation - taxpayer, as well as privately funded - back into focus.
Finance Minister Michael Cullen is keen to see his Superannuation Bill, which would pre-fund a universal income for those 65 and over, enacted. He wants superannuation removed from the status of political football.
All MPs are acutely aware that the elderly will comprise about 25 per cent of the population in 2020, making them an even more formidable voting bloc than they are today.