Summary

The key reason to undertake and publish this analysis is that new findings will be published from December 2024 using New Zealand’s participation in the OECD’s Survey of Adult Skills. New Zealand added a sample of 66-75 year-olds to the standard age range of 16-65. This report aims to begin a programme of reporting that explores some aspects of the lives of older people particularly education, skills and work.

Key findings

More than 70 percent of 60-63 year-olds in 2018 were working. Large proportions of people retired at around 65 along with their eligibility to New Zealand Superannuation. From 65 to 80 the proportion working continued decreasing steadily but at a slower rate. For example, in 2023, about 30 percent of 70-year-olds were working and 6 percent of 80-year-olds were still working.

Overall, older men were mostly more likely to continue working than older women, but both older men and older women left paid work at a similar rate.

The higher an older person’s educational qualification the more likely they were to stay working.

Older people’s median earnings increased yearly to around age 65, then broadly decreased, and then levelled off. The factors influencing this pattern include that up to 65 many people work full time and gain wage rate increases. After 65, some people continue working but reduce their hours to part time leading to lower annual earnings. In 2018, median hours worked for employed people were 40 hours per week for ages 60 to 65. From 66 to 75, median hours worked steadily decreased from 38 to 20.

The median earnings of 65-year-old men were $16,000 to $18,000 more than 65-year-old women’s median earnings. The gender gap is smaller – around $5,000 to $10,000 – for those in their late 60s and early 70s.

The cohort aged 60 in 2018 had median earnings widely spread by qualification level. Median earnings for those having at least a degree were $70,400 in 2018 which remained stable at just above $70,000 until they were 65 in 2023. The median earnings for the group that had a tertiary qualification lower than a degree was $51,700 in 2018, much less than for people with at least a degree.

Both gender and qualification level were strongly associated with median earnings. For example, median earnings for 65-year-old men with at least a degree in 2018 were $72,200 compared with women’s $50,200. Both women’s and men’s median earnings decreased over the six years to 2023. Decreasing hours of work contributed to this. By 2023, the gender earnings gap narrowed somewhat to $16,600 for those with at least a degree.