1. 28 October 2005 Rates Postponement The Context David Feslier Executive Director

2. 28 October 2005 New Zealand Population – Past, Present and Future 1961 2001 2061

3. 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

4. 28 October 2005 This is how we’ll get there

5. 28 October 2005 New Zealand’s Retirement Income Framework Private provision Public provision NZ Superannuation Adequacy Fiscal affordability Equity Fairness Stability Supported by Retirement Commission Education Monitoring Review Living Standard in Retirement

6. 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

7. 28 October 2005 New Zealand’s Retirement Income Framework Private provision Public provision NZ Superannuation Adequacy Fiscal affordability Equity Fairness Stability Supported by Retirement Commission Education Monitoring Review Living Standard in Retirement

8. 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?

9. 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

10. 28 October 2005 Senior Citizen’s Unit ted.gallen001@msd.govt.nz

11. 28 October 2005 www.sorted.org.nz