New Zealand’s population is getting older, and it’s happening faster than many business owners realise. The proportion of people aged 65 and over jumped from 14.3% in 2018 to 16.5% in 2023, and is projected to hit 21.5% by 2038. Meanwhile, the working-age population (15–64 years) is expected to grow by only 1% over the same period, compared to 7% in the previous decade. That shift changes who your customers are, who you hire, and how you operate.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
These aren’t distant trends. They are already reshaping how businesses recruit, market, and invest. A company that ignores the ageing workforce will struggle to fill roles. A retailer that overlooks older consumers leaves money on the table. The businesses that adapt now will have a clear edge over those that wait.
Here’s what you actually need to know.
One term you’ll hear a lot in this space is age-friendly business certification.
What I tend to notice is that businesses treat demographic shifts as something that happens to other industries. But the data shows it’s already affecting hiring, customer behaviour, and operational costs across the board. The question isn’t whether your business will be impacted — it’s whether you’ll be ready.
What Happens When You Ignore the Demographic Shift
The most immediate consequence is a tighter labour market. With 55% of employers already reporting difficulties hiring skilled workers — a 15 percentage point increase from 2018 — the pool of younger workers is shrinking. If your business relies on a steady flow of entry-level or mid-career staff, you will feel the pinch.
At the same time, 48% of workers aged 55+ report chronic health conditions affecting their work, up from 40% in 2018. That doesn’t mean they can’t do the job. It means they need different support — ergonomic workstations, flexible hours, and wellness programmes. Businesses that offer wellness programmes report 20% lower absenteeism among older workers. Ignoring those needs leads to higher turnover and more sick days.
On the customer side, the risk is equally clear. Older consumers hold 45% of household wealth, and they are loyal to brands that serve them well. If your marketing, product design, or store layout alienates older customers, you are handing that spending power to a competitor. And with 65% of consumers expecting age-inclusive marketing and product options, the expectation is no longer a nice-to-have.
Where Businesses Get This Wrong
Treating Older Workers as a Temporary Fix
Some businesses see older employees as a stopgap until they can hire younger staff. That’s a mistake. The data shows the participation rate for workers aged 65+ will keep climbing, reaching 27% by 2038. These workers are not a temporary solution — they are a permanent and growing part of the workforce. If you design roles, schedules, and workspaces around the assumption that older workers will eventually leave, you’ll keep losing them. Remote work adoption among older workers (55+) rose from 12% in 2020 to 31% in 2023. Offering flexibility isn’t a concession; it’s a retention strategy.
Marketing Only to the Young
It’s easy to default to a younger target audience because that’s what many advertising templates assume. But 79% of consumers aged 55+ remain loyal to brands they trust, compared to 63% of consumers aged 18–34. Older customers are more profitable over time. Yet only 53% of businesses have adjusted their marketing strategies to target older demographics effectively. If your imagery, language, and channels all skew young, you’re invisible to the demographic with the most money to spend.
Ignoring Regional Differences
National averages hide local realities. Auckland has the youngest median age at 36.8 years, while Waikato has the oldest at 39.8 years. Rural areas have a much higher proportion of residents aged 65+ (19.2%) compared to urban areas (14.8%). A business in rural Waikato faces a very different demographic reality than one in central Auckland. Applying a one-size-fits-all strategy ignores where your actual customers and workers live.
Overlooking Government Incentives
The government offers tax incentives for businesses implementing accessibility modifications, covering up to 50% of costs, capped at NZD 20,000 per business. Yet 34% of businesses are unaware these incentives exist. That’s free money left on the table. The process involves applying through the Ministry of Business, Innovation and Employment, with documentation of the modifications and their costs. It’s not complicated, but you have to know it’s there.
How to Future-Proof Your Business for New Zealand’s Changing Demographics
Audit Your Workforce Demographics and Needs
Start with the data you already have. What is the age profile of your current employees? How many are approaching retirement age? What health or accessibility needs are present? 42% of businesses have already implemented flexible working arrangements to accommodate an aging workforce. If you haven’t surveyed your staff on what they need, you’re guessing. A simple anonymous survey can reveal whether flexible hours, ergonomic equipment, or phased retirement options would make a difference. 56% of employers already provide ergonomic assessments for older employees — that’s a practical first step.
Redesign Your Customer Experience for All Ages
68% of consumers aged 65+ prefer to shop in-store rather than online, compared to 52% of consumers aged 18–34 who prefer online shopping. That means your physical space matters more to older customers. Are your aisles wide enough for a walker or wheelchair? Is your signage easy to read? Is there seating for customers who need a rest? 70% of consumers trust businesses that provide clear age-friendly options and accessibility features. On the digital side, 61% of businesses now use data analytics to understand changing customer demographics. If you’re not tracking who your customers are by age group, you can’t tailor your offerings.
Build an Age-Inclusive Hiring and Retention Strategy
The working-age population is barely growing. You cannot afford to exclude older workers from your hiring pipeline. That means rewriting job descriptions to avoid age-biased language, offering flexible schedules, and investing in training that works for all ages. 83% of businesses have invested in digital tools to support an aging workforce, including ergonomic workstations and assistive technologies. If you’re not among them, your competitors are. Consider phased retirement options that let experienced workers reduce hours gradually rather than leaving entirely. The knowledge they take with them is hard to replace.
Prepare for the 85+ Boom
By 2038, the population aged 85 and over is projected to double, reaching 240,000. That’s a customer base with very specific needs — mobility aids, home delivery, simplified packaging, clear communication. It’s also a workforce that may want part-time or consultancy roles. Businesses that start designing products and services for this group now will have a five-year head start on competitors. Spending on healthcare and aged care is projected to rise by 4.5% annually over the next decade. If your business can serve that sector, the opportunity is enormous.
Stay Ahead of Emerging Regulation and Certification
The age-friendly business certification scheme already has 1,200 certified businesses. That number will grow. Certification isn’t mandatory, but it signals to customers and employees that you take inclusivity seriously. The government also offers tax incentives covering up to 50% of accessibility modification costs, capped at NZD 20,000. These are not static programmes — expect them to expand as the population ages. 78% of businesses expect to modify operations in the next five years to cater to shifting demographics. The ones that start now will have the lowest transition costs.
Frequently Asked Questions
Do I need to register for age-friendly certification to benefit from the tax incentives? ▾
What counts as an accessibility modification for the tax incentive? ▾
How do I conduct a demographic risk assessment for my business? ▾
Is it worth targeting older consumers if my business is online-only? ▾
What happens if I don’t adapt my hiring practices for older workers? ▾
Can I get help with the legal side of restructuring my workforce? ▾
The Demographic Shift Is Your Next Competitive Advantage
The businesses that treat New Zealand’s ageing population as a problem will spend the next decade reacting. The ones that treat it as a strategic opportunity will build stronger workforces, more loyal customer bases, and more resilient operations. The data is clear: age-friendly practices lead to higher retention, higher productivity, and higher customer loyalty. The window to act is now, while the shift is still predictable and the incentives are available.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read The Rise of the Conscious Consumer: How NZ Businesses Can Respond.
Sources and Further Reading
Embracing Diversity and Inclusion: Strengthening NZ Businesses From Within — A practical look at how diversity strategies improve team performance and customer reach.
Sustainable Business Practices: A Competitive Advantage for NZ Companies — Explores how sustainability aligns with the values of the modern consumer base.
Statistics New Zealand (2023). Population Projections 2023. 🔗
Ministry of Business, Innovation and Employment (2023). Age-Friendly Business Framework. 🔗
NZ Consumer Trust Survey (2023). Consumer Trust and Brand Loyalty in New Zealand. 🔗
Deloitte (2022). Workforce Insights 2022. 🔗
