Treasury boss Iain Rennie reiterates warning of surging fiscal pressures of ageing population

It is vital for NZ to close its structural operating deficit as its population ages, says Treasury. (Image: Dean Purcell)

Staff reporters

Wed, 24 Sep 2025

Treasury’s latest look at New Zealand’s long-term financial future has again warned of surging fiscal pressures as an ageing population drives retirement and health costs up.“Despite some positive developments, New Zealand has been running a structural operating deficit since 2019/20,” said Iain Rennie, secretary to the Treasury.That underscored the need for sustained fiscal adjustment, he said.With unchanged policy, government spending per person would surge to an inflation-adjusted $35,900 by 2065, from $18,300 a perso...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market Close

NZ sharemarket edges higher despite KMD loss

The S&P/NZX 50 Index closed up 0.34% or 44.77 points, rising to 13,181.31.

Tom Raynel 6:13pm

Economy

Annual advertised salary growth slows to 2%: Seek

Only a third of industries have advertised salaries growing faster than inflation.

John Anthony 3:45pm

Annual advertised salary growth slows to 2%: Seek

Services

2degrees earnings show cash momentum

Non-cash costs mask strong operating earnings and cashflow.

Pattrick Smellie 3:31pm

Sponsored

AI agents: opportunity or graveyard? Spark’s five-point playbook for success

Artificial intelligence agents – autonomous digital entities that analyse data, automate decisions, and act independently – are set to drive a new wave of business transformation.

Spark Enterprise

Sponsored