Why population aging is not the main cause of rising government health expenditure in New Zealand
The average person aged 65 or older costs New Zealand's public health system five times as much as the average person under 65. Over the next 50 years, the proportion of the population aged 65 and over is expected to double. Naturally, numbers like this suggest that population aging will put pressure on government health spending in New Zealand and, based on global statistics, in many other countries as well. However, it is reasonable to be skeptical about the close link between population aging and spending pressures.
Econometric studies have produced mixed findings on the relationship between changes in age structure and changes in health expenditure. In fact, the focus on age structure may be misplaced.
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