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28 October 2005
Rates Postponement
The Context
David FeslierExecutive Director
28 October 2005
New Zealand Population – Past, Present and Future
7 6 5 4 3 2 1 0 1 2 3 4 5 6 7
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Percent
Male Female
7 6 5 4 3 2 1 0 1 2 3 4 5 6 7
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Percent
Male Female
7 6 5 4 3 2 1 0 1 2 3 4 5 6 7
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90+
Percent
Male Female
1961 2001 2061
28 October 2005
• The median age of the population will rise from 36 to 46
• One in four New Zealanders will be over 65(that’s approximately 1 million) (up from 450,000 or 12% now)
• Life expectancy will be 81 for men, and 85 for women
• 2.9 working age people to every 1 over 65 (currently 5.6)
• The number of people aged 85 & over will grow by 600% to an estimated 290,000
• The cost of NZ Superannuation will increase from 4% of GDP to 8-9% of GDP
Changing Demographics by 2030
28 October 2005
This is how we’ll get there
28 October 2005
New Zealand’s Retirement Income Framework
Private provision Public provisionNZ Superannuation
Adequacy Fiscal affordability Equity Fairness Stability
Supported byRetirementCommission• Education• Monitoring• Review
Living Standard in Retirement
28 October 2005
New Zealand Superannuation Rates
(Net 1 April 2005)
pw p.a.Single (living alone) $255
$13,302
Couple (both qualify) $393$20,465
28 October 2005
New Zealand’s Retirement Income Framework
Private provision Public provisionNZ Superannuation
Adequacy Fiscal affordability Equity Fairness Stability
Supported byRetirementCommission• Education• Monitoring• Review
Living Standard in Retirement
28 October 2005
Rates Postponement
• Demographic trends
• New Zealanders save through housing
• Asset rich; income poor
• Easier to stay in home
• Expectations of qualify of life?• Changing views on inheritance?
28 October 2005
Average weekly income(June 2004)
65 & over
Wages and salaries $36
Self-employment $25
Government transfers $240
Investments $61
Other transfers $22
Total all sources $389
28 October 2005
www.sorted.org.nz
