Bernard falls for it

Bernard Hickey writes:

This week Roy Morgan published its annual State of the Nation survey showing a stunning rise in the wealth of New Zealanders aged 55 and over. …

The report confirms an extraordinary shift in the structure of wealth in New Zealand that raises huge questions for politicians, policy makers and voters for years to come. Anyone aged 30 or lower should look away now. It may prove too painful to read.

The gross wealth of those aged 55 and over has risen from NZ$188 billion in 2002 or 37% of total wealth to NZ$525 billion or 47% of total wealth. This growth was only partly due to a rise in proportion of the population who are 55 and over to 24.7% from 19.5%.

Stats Chat pinged the Herald for this, but Bernard is worse with use of the terms “stunning” and extra-ordinary.

To be fair to Bernard he did cover the key point that the elderly share of the population has grown also. But he says it is only “partly” due to this. Well let’s look at that.

The increase in the  share is a relative 26.7%. The increase in wealth share is a relative 27.0%. The population change accounts for the wealth share going from 37% to 46.9%, so the actual increase is either rounding or a real 0.1% increase. Not stunning and not extra-ordinary.

I do agree with Bernard though that universal superannuation at age 65 is not sustainable.