New Zealanders are continuing to work beyond typical retirement ages, even in sectors that are physically demanding and often associated with earlier retirement.
According to Stats NZ, nearly 200,000 New Zealanders aged 65 or older are actively participating in the workforce.
Approximately 90,000 are aged 70 or older.
Individuals aged 65 or older comprise a notable portion of various occupations: 10.3% of machinery operators and drivers, 8% of labourers, 7% of professionals, and 9.1% of managers.
Meanwhile, those aged over 70 make up about 4% of managers and 3% of professionals, clerical and administrative workers, and sales workers, with 3.7% being labourers.
Among those aged over 80, managers had the highest representation, accounting for 0.7% of the workforce in that age group.
A total of 1,257 individuals aged 90 or older reported being actively engaged in the workforce.
Craig Renney, the chief economist for the New Zealand Council of Trade Unions, noted that it is unclear whether individuals reporting work in sectors like labouring and machinery operation are actively engaged in physical tasks or if they are instead overseeing and managing others.
“There’s a lot of people, particularly machine operators, who are the only people who know how to use this machine. As a consequence they’re the last person standing in the shop who knows how to use the non-digital lathe,” Renney explained.
He said some individuals transition into driving roles, such as buses, taxis, or Ubers, as a second career, often seeking more flexible schedules or a change in lifestyle.
Renney also suggested that some individuals over 90 might be working in a volunteer role or could be company owners, which could explain their continued involvement.
“They may not be in what we call significant amounts of labour-based employment,” he said.
For Renney, it is positive to have opportunities for older individuals to work, as long as they are doing so by choice. The concern arises when older people are compelled to continue working due to financial necessity rather than personal preference.
“The real challenge here is if people are being forced to work because their incomes are inadequate but they still need to pay the rent because they’ve never been able to buy their house.”
He said this could be “a sign of a failing welfare state because the pension isn’t enough.”
“They haven’t built up enough KiwiSaver; they’re forced to work at a time they probably don’t want to. Lots of people want to work and get great enjoyment out of it, but it should be a choice.”
Data from the Retirement Commission has revealed that approximately one-third of individuals over 65 continue working due to financial needs.
“For an increasing number of people who do not own their own home or do not have significant retirement savings, continuing to work in some capacity past the age of 65 is a necessity.”
Eric Crampton, chief economist at the New Zealand Initiative, suggested that some individuals over 90 who report being employed might be providing inaccurate information. He questioned the authenticity of these claims, wondering how many are genuine versus those who might be providing false data.
“I’m sure that some of those are real. But what proportion are real vs jokers?”