opportunities of ageing conference – 100413 slide 1 what is wealth? and how it affects older...
TRANSCRIPT
Opportunities of Ageing Conference – 100413slide 1
What is wealth?And how it affects older people
presentation to
Opportunities of Ageing Conference
Dr Ganesh NanaChief Economist
Business and Economic Research Ltd
10 April 2013
Opportunities of Ageing Conference – 100413slide 2
Economics and wealth is all about
liquidityswap rates
house pricesinterest rates
inflationleverage
debthedge funds
ratings
Opportunities of Ageing Conference – 100413slide 3
Wealth is …
liquidityswap rates
house pricesinterest rates
inflationleverage
debthedge funds
ratings
people
machinery &equipment
land
buildings
water
technology
skills &knowledge
experience
businesses
networks
innovation
iwi
whānau
except economists call t
hese resources
Opportunities of Ageing Conference – 100413slide 4
… and economics is about …
• how we (choose to) use resources (wealth) to* produce things we want, need, desire* look after, maintain, or replenish resources* improve and/or expand resources
consumer benefit investment to replace
investment to grow
Opportunities of Ageing Conference – 100413slide 5
Our choices in using wealth
resourcesor
wealth
consumergoods and services
investment to replace
investment to grow
for today
fortomorrow
Opportunities of Ageing Conference – 100413slide 6
Wealthindividual perspective
• financial• health and physical• social participation• life experiences
Opportunities of Ageing Conference – 100413slide 7
Wealth accumulation as we ageliquid financial
age
wealth
Opportunities of Ageing Conference – 100413slide 8
Wealth accumulation as we ageilliquid financial
age
wealth
Opportunities of Ageing Conference – 100413slide 9
Wealth accumulation as we agehealth and physical
age
wealth
Opportunities of Ageing Conference – 100413slide 10
Wealth accumulation as we agesocial participation
age
wealth
Opportunities of Ageing Conference – 100413slide 11
Wealth accumulation as we agelife experiences
age
wealth
Opportunities of Ageing Conference – 100413slide 12
Wealth accumulation as we age
age
wealth
liquid financial
age
wealth
illiquid financial
age
wealth
health and physical
age
wealth
life experiences
age
wealth
social participation
Opportunities of Ageing Conference – 100413slide 13
Drivers of accumulation of wealth
Opportunities of Ageing Conference – 100413slide 14
Drivers of wealthliquid financial
• income* education opportunities* employment opportunities* abilities
• financial literacy* understanding* opportunities
• luck
Opportunities of Ageing Conference – 100413slide 15
Drivers of wealthilliquid financial
• spending behaviour• savings habits
* home ownership options
• family circumstances• financial literacy
* understanding* opportunities
• luck
Opportunities of Ageing Conference – 100413slide 16
Drivers of wealthhealth and physical
• lifestyle and diet• family history / circumstances• housing situation
* living conditions* physical environment
• income• luck
Opportunities of Ageing Conference – 100413slide 17
Drivers of wealthsocial participation
• family circumstances• social situation
* isolated or connected?
• status of wider networks* schools* business* community
• income• luck
Opportunities of Ageing Conference – 100413slide 18
Drivers of wealthlife experiences
• family• networks
* schools, business, community
• passion and/or opportunity to explore• income• luck
Opportunities of Ageing Conference – 100413slide 19
Drivers of wealth... and, finally ...
• endowments* whakapapa* status or history* knowledge or understanding* financial
Opportunities of Ageing Conference – 100413slide 20
Or, is wealth …
• collective* family* whānau* iwi
• nation
Opportunities of Ageing Conference – 100413slide 28
Business investmentas % of GDP
6
8
10
12
14
16
Dec 88 Dec 94 Dec 00 Dec 06 Dec 12
%
Opportunities of Ageing Conference – 100413slide 29
Government investmentas % of GDP
0
2
4
6
8
10
Dec 88 Dec 94 Dec 00 Dec 06 Dec 12
%
Opportunities of Ageing Conference – 100413slide 30
Labour force participation rate
62
64
66
68
70
Dec 88 Dec 94 Dec 00 Dec 06 Dec 12
%
Opportunities of Ageing Conference – 100413slide 31
Labour force participation rate – 60-65yos
25
35
45
55
65
75
Dec 88 Dec 94 Dec 00 Dec 06 Dec 12
%
Opportunities of Ageing Conference – 100413slide 32
Labour force participation rate – 65+yos
0
6
12
18
24
Dec 88 Dec 94 Dec 00 Dec 06 Dec 12
%
Opportunities of Ageing Conference – 100413slide 33
Govt education expenditureas % of GDP
2
4
6
8
1996 2000 2004 2008 2012
%
Opportunities of Ageing Conference – 100413slide 34
Opportunities of ageing
• to contribute to accumulation of wealth across all dimensions* life experiences* social participation* health and physical* financial* and collective
• and so to improve (increase) resources available for nation to make its choices
Opportunities of Ageing Conference – 100413slide 35
NZ 2012 population
161148148
161171
149134135
149152
147128
11692
7250
3719
8
152141142
152159
149143
148164163
156134
12197
7958
4731
18
200 150 100 50 0 50 100 150 200
Under 55–9
10–1415–1920–2425–2930–3435–3940–4445–4950–5455–5960–6465–6970–7475–7980–8485–89
90+
000s
females males
but the next 25 yrs ???
man drought