Part three: Opportunities for action

Older New Zealanders want to participate and contribute

The Positive Ageing Strategy is our framework for achieving this

The major demographic shift of the ageing population will provide opportunities, as well as challenges, for government's policy responses.

Older New Zealanders want to participate and contribute to their own wellbeing, to the wellbeing of their families, and the wider New Zealand community. Factors influencing their ability to do this include not only their income and health status and access to housing and transport, but also their easy access to information and advice about social support services. The Ministry of Social Development is well positioned to provide the leadership to ensure that older people are able to “age in place” through partnerships with other agencies, local government and communities.

Government policies should allow and encourage today's older people, and future generations of older people, to experience ageing as a positive and productive stage in their lives, and to have access to good information and advice to do so. The underpinning premise is that the years of older age should be viewed and experienced positively by both older people and younger generations.

The Office for Senior Citizens leads the response to older people's issues across the government sector. We do this by promoting and monitoring the New Zealand Positive Ageing Strategy, and applying the principles of the Strategy to all our advice. We provide second-opinion advice on policies that affect older people, to ensure that older people's priorities are brought to the table when policies and legislation are developed. The Strategy's principles also drive the connections we make with the community through the Volunteer Community Co-ordinators programme. This programme is key to developing good relationships with older people, and their service and advocacy groups, throughout New Zealand.

New Zealand Positive Ageing Strategy – a living document 10

The Strategy’s success will be measured by improvements in the status of older people

The purpose of the New Zealand Positive Ageing Strategy is to promote positive ageing across a broad range of portfolio areas, and to improve opportunities for older people to participate in the community in the ways that they choose. The Strategy identifies policy principles for positive ageing, priority goals and key actions, and is used in policy planning by central, regional and local government agencies.

The New Zealand Positive Ageing Strategy was released by the Minister for Senior Citizens on 10 April 2001. The Office for Senior Citizens developed the Strategy in consultation with a range of older people's expert and advisory groups, key sector organisations, individuals and communities of interest from all over New Zealand.

Older people were engaged from the outset in shaping and defining the issues and activities covered by the Strategy. Ultimately, its success will be measured by improvements in the status of older people. Older people are both the purpose and the outcome measure of the Strategy, and their input into its development was critical.

The Office has co-ordinated and produced five annual action plans since 2001. Each year's action plan has provided a larger collective work programme, and has involved a wider range of government agencies at central, regional and local levels.

Some examples of recent achievements include the development of new thresholds for the Rates Rebate scheme, the review of the Older Driver Licensing System, and the ACC Falls Prevention programme. This programme involves tai chi classes to strengthen muscles and to reduce injury to older people from falls.

Making positive ageing local

More local authorities are getting involved, providing a basis for community action

"Setting up the Positive Ageing Group to work with our local Council has kept me busy and out of trouble."

(John Cunningham, Volunteer Community Co-ordinator with the Office for Senior Citizens)

The 2003/2004 Action Plan was the first to include actions from a local authority, the New Plymouth District Council. This is an example of local government using the framework of the Positive Ageing Strategy to provide policies for older people in their district.

The New Plymouth District Council, along with a local collective of older people's organisations and regional government agencies, formed a Positive Ageing Reference Group to work together on local solutions to meet the needs of local older people. A district-wide Positive Ageing Policy document for older people in the area was developed and approved by the Reference Group, and published by the New Plymouth District Council.

The 2005/2006 New Zealand Positive Ageing Strategy Action Plan includes more than 193 projects and initiatives to be carried out by 56 agencies at central, regional and local government agencies. This includes17 local councils, A significant increase on previous years.

Review of the New Zealand Positive Ageing Strategy

The current review is a good opportunity to revisit and refresh the Strategy

In 2001, the Status Report Positive Ageing in New Zealand: Diversity, Participation and Change provided an initial snapshot of the situation for older people in New Zealand. The information provided a baseline for evaluating New Zealand's progress in achieving the Positive Ageing Strategy's goals.

A review of the New Zealand Positive Ageing Strategy is considering how the 10 goals and issues identified in the 2001 Status Report have been addressed through the five successive New Zealand Positive Ageing Strategy action plans.

Early findings from the review suggest that significant progress has been made towards the goals of the New Zealand Positive Ageing Strategy, but that there is still room for more improvement. 11 In particular, progress is required in making public transport more accessible, in developing housing options that enable older people to remain living in their own communities for longer, in improving access to services for older people in rural areas, and in improving attitudes to ageing. 12

The New Zealand Positive Ageing Strategy action plan and annual report process has led to good short-term outcomes. The review provides the Minister for Senior Citizens with an opportunity to revisit the format and process for the development of the Strategy documents. More importantly, it gives the opportunity to refresh the Strategy to ensure it makes a real difference to older people's lives. The review will mean that the Strategy's goals and key actions stay relevant to older people now and in the future.

Active ageing requires flexible work options

Life-long learning and the option to work past the age of 65 are central to positive ageing

Barriers to work for older people include lack of confidence, a mismatch of skills, and employer attitudes

Older people seeking paid employment may need support and retraining

The choice to work later in life, using flexible and part-time arrangements, is of central importance to meeting the active ageing challenge.

Research findings suggest that those who work longer, either paid or unpaid, enjoy better health in their older age. The policy conclusion is clear: it is imperative to maintain people in gainful activity longer. To achieve this objective, more emphasis must be given to lifelong learning for workers of all ages, so that workers maintain and increase their skills and productivity as they grow older. 13

Full-time employment rates for people aged 60 and over have increased since the age of eligibility for New Zealand Superannuation began rising in 1992. 14 Another change driving this increased labour force participation was the introduction in February 1999 of provisions in the Human Rights Act 1993 prohibiting compulsory retirement on the basis of age.

In 2004, 57% of men and 27% of women aged 60–64 were in full-time work, over double that in 1992. The proportion of people aged 65 years and over in part-time or full-time employment nearly doubled between 1992 and 2004, from 6% to 11%.

Figure 3.1 Population by labour force status, by age and sex, 2001, 2026, 2051

Source: Statistics New Zealand , National Labour Force Projections

A greater proportion of older men and women are projected to be working in 2011 than in 2001 (Figure 3.2). Women aged 50 and over are expected to have large increases in labour force participation rates, and for men the biggest changes are expected in the 60 years and over population.

Figure 3.2 Projected increase in labour force participation at older age, by age and sex, 2001 and 2011

Source: Statistics New Zealand , National Labour Force Projections, assuming medium and high labour force participation

While greater numbers of older people are choosing to engage in full- or part-time employment, some older people face specific barriers to work. Barriers can be both general and personal. 15

General barriers can include negative attitudes of employers to mature workers, the ability to pay lower wages to young people, and employers wanting to give younger people a chance. Personal barriers include a lack of confidence, a lack of computer skills, being either under- or over-qualified for the positions available, having to accept lower income levels than previously, and not being able or willing to relocate to take up work opportunities.

Attitudes of employers to older employees are complex. Research undertaken in New Zealand in 2000 found a perception among employers that older workers are change-resistant and have difficulty with technology, but are also dependable and productive. 16 Many employers and older employees said that, while the introduction of human rights legislation banning discrimination by age in employment had been effective in changing job advertising, it had effected little change to actual recruitment practices. For this reason, it is important that policies are directed to changing attitudes to ageing across all age groups.

There is still a need to improve employers' attitudes to older workers. Some older people are not in work but have chosen not to register as unemployed, either because they have chosen early retirement rather than unemployment or because they have become discouraged from the labour market because of negative experiences.

Because these older people are not registered as unemployed, they do not receive support with finding work from case managers within the Work and Income service of the Ministry of Social Development. If older people are to be encouraged to help fill the gaps in the labour market, it is important that those who have become discouraged are identified and provided with the support and retraining they need to move back into work.

Eldercare will be needed for some older people while younger women work

In future, fewer people outside the workforce will be available to care for older people who need support

The changing ratio of older people to potential carers outside the labour force will need to be addressed in the medium future. In the past, middle-aged adult daughters have largely provided such care on an unpaid basis.

Changes in women's labour force participation, delayed childbearing, smaller families, and increased geographical mobility among older people have reduced the capacity of daughters to provide such care. There is currently just over one person aged 75 or more for each person aged 45–64 who is not in the labour force and could potentially provide support.

The ratio will change rapidly from about 2020, and by 2031 there will be almost two people aged 75 and over for each person aged 45–64 years not in the labour force. These ratios assume that the current labour force participation rates of women and men continue.

Savings are key to a comfortable future

We must encourage New Zealanders to save now for their retirement

The New Zealand Superannuation Fund was created as a strategy to deal with the fiscal burden of an ageing population. The Fund sets aside savings now to cover the cost increases created by the baby boomers as they retire and claim New Zealand Superannuation (NZS).

If retired New Zealanders want to enjoy the same or a similar standard of living as they did when they were working, it is unlikely that reliance on NZS alone will enable this over their lifetime. Encouraging New Zealanders to save enough now is the next challenge in ensuring that older people in the future have a secure and adequate income.

The Retirement Income Act 1993 established the position of the Retirement Commissioner, funded through Vote: Social Development. The role of the Retirement Commissioner is to raise awareness of the need to plan for retirement, and to educate the New Zealand public about financial management and retirement planning. One way this is being done is through the Sorted website, 17 where a 60plus section has been set up to help older people manage their investments once they retire.

Support services will enable older people to stay in their homes

We need to build the capacity of the workforce for home and residential care

Assisting people to remain in their own homes requires policies that allow older people to continue to live as independently as possible while they are able, and to provide quality residential care when their care needs increase.

The Ministry of Health has identified challenges to providing support services for older people and people with disabilities. Priorities for action include improving training and career development opportunities, as well as remuneration for the home care and personal support workforce. Residential care workforce issues related to workforce training and retention are also being addressed.

Admission to residential care is based on an assessment process, designed to restrict admission to those with the highest care needs. If residential care is required, a residential care subsidy based on income and asset tests is available.

On 1 July 2005 , the allowable asset level was increased from $15,000 for a single person and $45,000 for a married couple to $150,000, with a subsequent $10,000 increase to the asset level each following year. This will result in greater numbers of older people having an entitlement to a residential care subsidy.

In the past, religious and welfare providers were key players in the provision of residential care. Over the past 18 months, religious and welfare providers have started to exit the market. This leaves a gap, particularly for those older people who need care but may be considered difficult to place.

Responsive housing options are needed for older people

Good housing options will support older people to age in place

Abbeyfield is a good model for alternative, affordable, quality housing

Older people who do not own their own home or who have not been able to accumulate substantial assets have fewer housing options later in life. 18 They tend to be limited to Housing New Zealand Corporation (HNZC) or local government authority houses or units, or those provided by the voluntary or private sectors. 19 These types of housing have, in the past, often been inadequate to address older people's needs. More recently, both HNZC and some local authorities have worked towards providing more suitable accommodation options for older people.

A number of different housing options already exist, including sheltered or extra-care housing, retirement villages or social villages. Other options will need to be encouraged to meet the future needs of older people and allow them to age in place. Staying in the family home may not be the best option in all circumstances, and so alternatives to residential care need to be found.

A 2004 report from the Centre for Housing Research Aotearoa New Zealand identified two challenges to older people being able to age in their communities. 20 The first challenge is to maintain and upgrade the living conditions of older people in mainstream housing, so this remains a viable option as the numbers of older people increase. The second challenge is to develop a range of alternative housing options to meet the care needs and social or cultural preferences of older people 21 who lack the personal and financial resources to ensure adequate and appropriate housing without assistance.

The recently released New Zealand Housing Strategy provides an opportunity for the development of a work programme that will address some of the current housing gaps. 22 HNZC is committed to developing a housing work programme in 2005, to work towards meeting the needs of older people in the future.

One model for potential development in New Zealand is sheltered or extra-care housing as seen in the Abbeyfield model. This volunteer-based, not-for-profit organisation provides affordable quality rental housing on a communal-living basis. The houses are aimed at older people with low incomes and limited assets, but people who have previously owned a house are not excluded.

There are a number of local councils providing excellent pensioner housing for older people. The partnerships forged by the New Zealand Positive Ageing Strategy, with local authorities, hold potential for the Office for Senior Citizens to promote the inclusion of housing policies in local authorities' Long Term Council Community Plans.

Retirement villages

The Retirement Villages Act will establish standards of practice in retirement villages

Many older New Zealanders are taking up the option of moving to a retirement village. While the numbers of retirement villages have increased throughout the country, they only provide for those older people who have sufficient capital assets and can afford to make this choice. Problems with the charging and management practices of some retirement villages have been the subject of considerable complaint over a number of years. This resulted in the Minister for Senior Citizens asking the Office for Senior Citizens to lead the development of the retirement villages legislation.

The Retirement Villages Act 2003 is designed to enhance older people's confidence in retirement-village living as a residential option. It balances the interests of retirement village residents and owners and establishes standards of practice in retirement villages.

The Act will ensure a degree of external oversight by the Registrar of Retirement Villages through the provision of statutory supervisors to oversee the financial viability of villages. There is also a requirement to establish a process for the on-selling of vacated units, and to provide for appropriate sanctions and penalties for breaches of the legislation.

Regulations are being developed to enable the Act to come into force in 2006. The Retirement Commissioner is finalising a draft code of practice to set standards in retirement village practice, for submission to the Minister responsible for the Act. Responsibility for the Act passed from the Office for Senior Citizens to the Department of Building and Housing on 1 July 2005.

Providing flexible transport options will enable active participation

Access to transport is critical for independence and participation

"I was born when no one had a car. We walked just as we can do now".

(Gladys Goodall, senior citizen Christchurch)

Access to transport is central to older people's active participation in the community. Connecting with the community helps to prevent social isolation and keeps older people living independently in ways that they choose.

Access to transport is a key way of enabling older people to age positively. It is essential that central, regional and local government agencies consider older people's transport needs when developing public transport options. The New Zealand Positive Ageing Strategy is a framework for developing partnerships between government and local authorities, so older people's transport needs are considered during the development of local and regional transport policies.

Being able to travel both within the community and to other areas is likely to be an important indicator of the degree of independence among the older population. In the 2001 Census, the majority of older people (84%) stated that they had access to at least one motor vehicle. The proportion declines sharply with age: 91% of 65–74 year olds have access to a motor vehicle compared with 79% among 75–84 year olds and 55% of people aged 85 and over. Men are more likely to report having access to a motor vehicle than women (92% compared with 78%).

Coping without a car

Coping without a car examined the issues for older people without private transport

The pamphlet, 'How will you get around when you stop driving?' provides a trigger for people to plan ahead

In 2004, the Office for Senior Citizens commissioned research from the New Zealand Institute for Research on Ageing (NZiRA) on the impact that the lack of private transport had on older people's lifestyles and quality of life. The research, called Coping without a Car, also examined how older people who do not have access to private transport meet their transport needs.

Loss of access to private transport and the consequential loss of independence emerged as a significant issue for older people. To maximise access to the findings of the Coping without a Car study, in 2005 the Office produced a pamphlet for public distribution.

The Minister for Senior Citizens launched the pamphlet How will you get around when you stop driving? on 7 July 2005 . The Office distributed 300,000 copies to the Volunteer Community Co-ordinators, Work and Income service centres, and a wide range of other organisations. These included RSA, Age Concern and Grey Power branches, medical centres and chemists, libraries and Citizens Advice Bureaux, and Automobile Association branches throughout New Zealand.

How will you get around when you stop driving? provides a trigger for people to think about and plan for a time when they may need to stop driving. This includes making choices that will enable people to continue being able to do the things they want to do. This pamphlet should help older people and their families to recognise and respond to the some of the difficulties that may be faced by many older people when they stop driving.

We have had excellent feedback from many of the groups who received the pamphlet, including comments that the pamphlet was timely and provided concise and relevant information. Occupational therapists find the pamphlet particularly helpful for their clients.

Older driver licensing review

In October 2004, the Government announced a review of the current older driver licensing system, in response to criticism from older people's advocacy groups about the costly and discriminatory nature of the system. The current system has a requirement that, when drivers reach the age of 75, they must obtain a medical certificate and pass an eye test. Drivers aged 80 and over are required to pass a medical test and an eye test and take a driving test every six months.

In April 2005, the Government announced support for a new system, which will include no mandatory age-based on-road test. The new older driver licensing system is planned to come into effect during 2006/2007. If this happens this is likely to result in older people, who in the past may have given up driving because of the stress associated with taking the test, being able to maintain their independence longer.

Public transport

Public transport isn't always an option for older people, particularly in rual areas

The Coping without a Car study found that, while public transport tends to be an important option for older people who do not drive, it is not universally available throughout the country, particularly in rural areas. 23 Furthermore, public transport is only a practical alternative if there are services at the times older people want to travel and to the destinations they want to travel to, and if the older people have the mobility to get on and off vehicles. More flexible and responsive forms of public or community transport will be needed in the future, to respond to the transport needs of increasing numbers of older people.

Rural transport

The cost of transport can affect spending on other essentials

The loss of private transport can be particularly difficult for rural older people, and can cause major lifestyle changes if transport alternatives are not available. Some rural communities have used creative solutions to enable members of the community to access services when public or private sector transport is not available. For example, voluntary groups can partner with local authorities to provide community transport options.

Much work is still needed to ensure that older people who can no longer meet their own transport requirements can still access local and more distant services. In rural areas, work is urgently needed to ensure that older people have access to essential services such as health care. Specialist or hospital appointments will often require travel to a larger centre some distance away. The cost of public transport, when it is available, may compromise older people's ability to pay for necessities such as heating and food. Other aspects of older people's lives may also be affected because of the costs of travel to health services.

Improved and responsive transport services will enhance older people's lives by allowing them to continue participating with their families and in their communities.

Strengthening legislation supports older people's choices

The Office for Senior Citizens has been reviewing the enduring power of attorney legislation and has begun developing an industry code of practice for home equity release schemes to provide strengthened legislative protection for older people.

Review of enduring power of attorney legislation

Proposed amendments will yightin and clarify the enduring power of attorney legislation

Elder abuse and neglect, including financial abuse, is a social issue

The Office for Senior Citizens is currently responsible for a review of the provisions in Part IX of the Protection of Personal and Property Rights (PPPR) Act 1988 relating to enduring powers of attorney (EPA). The purpose of the EPA provisions in the PPPR Act is to allow mentally-capable adults to make private arrangements for their personal care and welfare and their property management, in the event they lose personal capacity to look after these matters themselves.

The review of the PPPR Act follows a review of the legislation and a public consultation process undertaken by the Law Commission into the misuse of EPAs. The Law Commission identified insufficient protection for donors in the initial granting of a power of attorney, among other issues. Concern was also expressed by older people's interest groups that the current EPA provisions provide insufficient protection of older people's rights and interests.

The proposed amendments to the legislation follow the recommendations of the Law Commission in their April 2001 report, Misuse of Enduring Powers of Attorney (Report 71). The amendments aim to tighten requirements around the creation of an EPA, to clarify the process relating to activation of an EPA, and to tighten provisions relating to gifting in the context of an EPA. Further work will be done with key agencies on the issues of providing easier access to the Courts if abuse is alleged.

In its initial discussion paper on the misuse of EPAs, the Law Commission noted that many social workers and others concerned about the welfare of older people were convinced of the occurrence of EPA misuse. It also referred to an examination of 130 case studies of elder abuse, compiled by Age Concern Auckland over a two-year period. The examination showed that 40 elder abuse cases were attributable to misuse of an EPA.

On 1 July 2005 , the Family and Community Services and the Older People's Policy teams in the Ministry of Social Development took over responsibility for contracting with service providers and for policy development relating to Elder Abuse and Neglect Prevention Services. Opportunity for All New Zealanders , the summary statement of government strategies to improve social outcomes for all New Zealanders, identifies elder abuse and neglect as one of five critical social issues for priority interagency action over the next three to five years.

Home equity release schemes – code of practice

Older New Zealanders want to participate and contribute

A home equity release scheme is a type of insurance scheme that releases the equity older people have in their home, in the form of an annuity, lump sum or periodic payment. This lump sum can be used to enhance an older person's lifestyle or to enable them to remain living in their home for longer than they otherwise could. Home equity release schemes have become more prolific in New Zealand in recent years.

Most older people own their own homes, the vast majority without a mortgage, and the money they have tied up in their homes is a major aspect of their net wealth. Older people are interested in making use of their equity in their homes in a way that enables them to supplement their fixed income, but they lack confidence in the schemes. They are wary of the financial consequences of taking what amounts to a reverse mortgage.

Budget 2005 provided funding of $258,000 (GST exclusive) over the next two years for the Office for Senior Citizens to develop an industry code of practice for home equity release schemes. Such a code will provide older people considering using home equity schemes with a level of protection for their financial interests. It will also give them confidence when looking at a wide range of options for enhancing their lifestyle. Where these schemes exist overseas, it is common practice to have regulatory controls.

An international literature review is being undertaken to examine how reverse mortgage schemes are regulated in other countries, and what industry controls are in place. The code of practice will be negotiated with the insurance industry, and is expected to cover issues such as disclosure of terms and conditions, risk management practices and recoveries. It will not seek to promote or endorse home equity release schemes.