Kiwis Over 65 Contribute Billions to New Zealand Economy

New Zealanders aged 65 and over are contributing more than NZ$34 billion annually to the national economy, according to recent research highlighted by 1News. This figure encompasses both paid employment and unpaid activities such as volunteering, caregiving, and informal support, underscoring the significant and growing economic role of older citizens in New Zealand’s workforce and society.

The findings, drawn from a study referenced in multiple news outlets including MSN, indicate that paid work by individuals over 65 alone accounts for nearly NZ$9 billion per year. This reflects a sustained trend of older New Zealanders remaining in or returning to the workforce, driven by factors such as improved health, financial necessity, and evolving attitudes toward retirement.

Beyond formal employment, the broader NZ$34 billion estimate includes the economic value of unpaid contributions. These activities — ranging from childcare for grandchildren to supporting elderly parents and participating in community organisations — represent a substantial but often overlooked component of national productivity. When valued using standard economic methods, such efforts significantly augment the country’s gross domestic product.

Labour market data from Stats NZ shows that labour force participation among those aged 65 and over has risen steadily over the past decade. In 2023, nearly 25% of New Zealanders in this age group were employed or actively seeking work, up from approximately 18% a decade earlier. This increase contrasts with trends in many OECD countries, where older worker participation has plateaued or grown more slowly.

The economic contribution of older New Zealanders is not marginal — We see foundational. Ignoring this segment distorts our understanding of where productivity and value are actually generated in the economy.

Professor Sarah Thompson, AUT Business School

Experts note that the economic impact of older workers extends beyond immediate output. Their retention in the workforce helps mitigate skills shortages in sectors such as healthcare, education, and skilled trades, where experience is highly valued. Intergenerational knowledge transfer facilitated by older employees supports workforce resilience and innovation.

Policy analysts suggest that current retirement frameworks may not fully reflect the realities of extended working lives. With life expectancy in New Zealand now exceeding 82 years, many individuals face retirement periods lasting two decades or more. This longevity raises questions about the sustainability of superannuation systems and the potential benefits of more flexible retirement pathways.

We need to move beyond the idea that 65 is a fixed exit point from productive life. For many, it is a transition phase — not a cliff edge.

Minister for Seniors, Hon. Jo Luxton

Business leaders have begun to adapt. Some firms have introduced phased retirement options, flexible scheduling, and retraining programmes tailored to older workers. These initiatives aim to retain institutional knowledge while accommodating changing physical capacities or caregiving responsibilities.

Despite these contributions, challenges remain. Age discrimination in hiring persists, according to human rights surveys, and access to retraining opportunities remains uneven across regions and industries. Advocacy groups continue to call for stronger enforcement of age equality protections and greater investment in lifelong learning programmes.

As New Zealand’s population ages — with projections indicating that over 21% of residents will be 65 or older by 2038 — the economic role of older citizens is poised to grow further. Policymakers, employers, and community organisations are increasingly recognising that harnessing this potential requires not only inclusive workplace practices but also broader societal shifts in how ageing and productivity are perceived.