Dr Stephanie Worboys
Auckland, October 29, 2024
Older generations love to complain that young people are lazy or entitled. Younger people argue that life is more challenging now than it has ever been. What is certain is that New Zealand is losing young people in record numbers. More 25 to 34 year-olds are voting with their feet by heading overseas for better opportunities. We need to ask: Have we broken an intergenerational contract, leaving the future of our nation shortchanged?
Moving to Australia
Many have shipped off to Australia. It makes sense. We are in a cost-of-living crisis, and wages are often significantly better there. The cost of living is often lower, too. While their reasons for leaving are understandable, there is a very strong argument that we haven’t done enough to make New Zealand a place worth staying in.
Starting a family and building a life in New Zealand is challenging.
Stagnant wages and the rising cost of living make it difficult for young people to save money, invest in their futures, or even cover day-to-day expenses. Essentials such as utilities, groceries, and transportation have become increasingly expensive, stretching household budgets thin. The healthcare system is under pressure, struggling to keep up with the demand for services, which often results in long wait times and limited access to care.
Compounding these issues is the housing crisis. The limited availability of affordable houses makes it difficult for young people to get a foot in the door. We have been wringing our hands about this problem for over a decade but have failed to solve it.
Some of these challenges are simply the luck of the draw. None of us gets to choose the time or circumstances into which we are born, and we must play the hand we are dealt. However, not all of the challenges facing young people today are due to uncontrollable forces; some stem from mismanagement. We have failed to keep up with our infrastructure needs, for example, kicking the can down the road for other generations to pay.
Ageing Population
New Zealand’s ageing population puts added pressure on young workers. In the 1960s, the ratio of workers to retirees was high, with seven working-age Kiwis for every retiree. However, this ratio has dramatically decreased. Today, that number has dropped to four, and within fifty years, it is expected to fall to just shy of two.
On top of supporting more retirees than ever, today’s workers also contribute to the NZSF, which means they are partly funding their own future pensions—a burden other generations have not had to bear.
The exodus of our young is a clear signal that the intergenerational contract is under strain. To safeguard the nation’s future, policymakers must act now. By focusing on affordable housing, fixing our infrastructure, and rethinking superannuation, we can create a society where all its members can thrive.
We must ensure that future generations are not short-changed and that they inherit a society as good as, if not better than, the one we received. Our viability as a nation depends on it.
Dr Stephanie Worboys is a Researcher at the Auckland-based Maxim Institute, an independent think tank working to promote the dignity of every person in New Zealand by standing for freedom, justice, compassion, and hope.
