New Zealand's population is ageing rapidly — the proportion of New Zealanders over 65 will increase from around 16% today to over 25% by 2040. Services for older people — home and community support, residential care, social connection programmes, dementia services, and elder abuse prevention — need sustained investment to keep pace with demographic change. Understanding the aged care funding landscape matters for service organisations and for philanthropists considering investment in older New Zealanders' wellbeing.
Demographic change
Baby boomers — the largest generational cohort in New Zealand — are reaching their 70s and 80s. This demographic bulge is driving rapid growth in demand for health and social services for older people. The workforce, infrastructure, and funding systems for aged care are all under pressure.
Living well in older age
Most older New Zealanders want to live at home, in their communities, for as long as possible — not in residential care. Home and community support services, social connection programmes, and preventive health investment that enable community living are both preferred by older people and more cost-effective than residential care.
Māori and Pacific aged care
Older Māori and Pacific people have specific cultural needs in aged care — culturally appropriate services, connections to whānau and community, and service providers who understand their cultural contexts. Māori aged care providers and Pacific aged care services are growing but remain underfunded relative to need.
Elder abuse
Elder abuse — financial, physical, psychological, and sexual abuse of older people, most often by family members — is a significant and underreported problem. Age Concern New Zealand and other organisations work on elder abuse prevention, identification, and response.
Ministry of Health — older people's health
The Ministry of Health (now Te Whatu Ora) funds:
- Home Support Services: personal care, household management, and other in-home support for older people with assessed needs
- Residential Care Subsidies: government subsidies for residential care (rest home and hospital-level care) for people whose assets and income fall below threshold levels
- NASC (Needs Assessment and Service Coordination): assessment of older people's support needs and coordination of services
- Palliative care: end-of-life services for older people and those with life-limiting conditions
InterRAI Assessment
Older people's needs are assessed using the internationally-standardised interRAI assessment tool. Assessment determines eligibility for publicly-funded home support and residential care. The threshold for publicly-funded home support requires a moderate or high level of assessed need.
Dementia care funding
Dementia New Zealand (formerly Alzheimer's New Zealand) receives government funding for community dementia support services. Memory assessment services are funded through District Health Boards. Specialist dementia residential care is separately funded from general residential care.
Falls prevention
Ministry of Health programmes fund falls prevention — physical conditioning programmes, home hazard assessment, and medication review — which significantly reduce injury and hospital admissions among older people.
Gaming trusts are significant funders of community services for older people:
What gaming trusts fund
Application approach
Gaming trust applications for elder services should demonstrate community access — that the programme is open to older people generally, not just those who are residents or members of a specific organisation. Evidence of social isolation being addressed and community benefit are particularly valued.
Age Concern New Zealand — a national organisation with regional branches — provides:
- Information and education for older people
- Elder abuse response services
- Volunteer visiting programmes (Accredited Visiting Service)
- Active ageing programmes
Age Concern receives government funding through the Ministry of Health and community funding through gaming trusts and philanthropy.
New Zealand philanthropy has historically invested less in aged care than in child and youth services. Funders who invest in older people's wellbeing include:
Foundation North: occasionally funds programmes for older people in Auckland.
Wellington Community Trust: older people's social programmes in Wellington.
Community trusts across New Zealand: community wellbeing grants often fund older people's services.
Perpetual Guardian and managed trusts: some trust-managed philanthropic funds have aged care focus.
Gap areas for philanthropy
Areas where philanthropic investment can make the greatest difference:
- Social connection programmes for isolated older people
- Dementia-specific community services beyond government contracts
- Cultural services for Māori and Pacific older people
- Technology-enabled care (telehealth, medication management, monitoring)
- Carer support (family members caring for older relatives)
- Research and innovation in aged care models
Several innovative approaches to aged care are gaining evidence and funding interest:
Village networks: community networks where older people support each other and access services — similar to the Village to Village network model from the US.
Co-housing and intentional communities: older people living in community-designed housing with shared spaces and mutual support.
Intergenerational programmes: connecting older people with younger people — school partnerships, mentoring, shared living — combating isolation and building community.
Technology-enabled independence: GPS safety monitoring, medication dispensers, video calling, and smart home sensors that enable older people to live independently longer.
Social prescribing for older people: connecting lonely or isolated older people to community activities, exercise groups, and social programmes through GP referral.
Dignity and agency: older people are not simply recipients of care — they are active community members with skills, wisdom, and agency. Grant programmes that honour older people's agency and contribution (not just their needs) are more effective.
Carer support: family carers of older people need support too — respite, peer support, financial assistance. Investment in carers reduces carer burnout and delays residential care placement.
Rural aged care: older people in rural and remote areas have less access to services. Rural aged care funding — mobile services, telehealth, rural volunteer networks — addresses this inequity.
Prevention and wellness: investment in preventive health and active ageing reduces the demand for acute and residential care. Grants for falls prevention, chronic disease management, and healthy ageing programmes have strong cost-effectiveness evidence.
Tahua's grants management platform supports aged care funders and organisations serving older New Zealanders — with grant tracking, wellbeing outcome measurement, volunteer programme management, and the tools that help funders invest effectively in the dignity and connection of older people in Aotearoa.