09/06/2026
Tracey Martin speaks at the Grey Power AGM 9 June 2026. PLEASE READ IT:
Summary of Speech by Tacey Martin, Chief Executive of the Aged Care Association: The Future of Aged Residential Care in New Zealand
Tracey Martin outlined the growing challenges facing New Zealand’s aged residential care sector and called on Grey Power members to become active advocates for change.
A Growing Crisis in Aged Care
Today, the average person enters residential care at around 85 years of age and stays for approximately 15 months. Residential care has become the place where many New Zealanders spend the final stage of their lives. With hospitals and hospices under increasing pressure, residential care facilities are playing an increasingly important role in the health system.
New Zealand currently has approximately 40,000 aged care beds compared with only 10,000 hospital beds. Despite this, the sector is struggling to meet demand, particularly in rural and regional communities.
An Outdated Funding Model
A key concern is that the funding model for aged residential care has not kept pace with changing needs. The current system is based on assumptions and care models from the 1990s, when residents entered care younger and required lower levels of support.
Today’s residents are older, frailer, and often have more complex health needs. Government funding no longer covers the true cost of care. As a result, many providers are forced to charge room premiums simply to remain financially viable. Independent audits have confirmed that many providers cannot operate sustainably under current funding arrangements.
Tracey stressed that aged care is healthcare. A person’s right to receive appropriate healthcare should not diminish simply because they turn 65 or require residential care instead of hospital treatment.
Consequences for Families and Communities
The shortage of residential care beds is already having serious consequences. Families are often forced to place loved ones far from home because local care options are unavailable. Tracey Martin cited examples of families travelling hours each day to visit relatives who have been moved to distant facilities.
The burden of care is increasingly being shifted from the state to families, particularly spouses caring for partners with dementia. Many family carers experience exhaustion, declining health, and emotional stress. Although respite care is available in theory, facilities are often so full that respite beds cannot be accessed when needed.
Tracey argued that carers need better support through dedicated respite services, day programmes, and recovery care options that help people remain independent for longer while reducing pressure on families.
Demographic Pressures Are Increasing
The challenges facing aged care will become more significant over the coming decades. New Zealand’s population aged over 65 is expected to increase dramatically, while the population aged over 85 will grow even faster.
She challenged the common narrative that an ageing population is a problem. Instead, longer life expectancy should be seen as a sign of success. The real issue is that New Zealand has not adequately prepared for demographic change or supported younger families sufficiently to maintain population growth.
Another concern is that increasing numbers of older New Zealanders will retire without significant assets. Home ownership rates are declining, meaning many future retirees will not have houses to sell to fund accommodation or care costs. This challenges the assumption that all older people are asset-rich.
What the Government Must Do
Tracey outlined several key actions needed to ensure older New Zealanders can access appropriate care:
1. Restore capacity in standard care beds so people on superannuation can access affordable care close to home.
2. Introduce funding that reflects the real cost of care, rather than relying on outdated models.
3. Invest in new aged care infrastructure to increase bed numbers and meet future demand.
4. Expand respite care and day programmes to better support family carers.
5. Develop recovery and rehabilitation services within residential care settings to reduce hospital pressures.
6. Plan for future demand, with current projections indicating a shortage of at least 12,000 aged care beds.
She believes these measures would improve outcomes not only for older people but also for hospitals, communities, and families.
A Call to Action for Grey Power
A major theme of the speech was the importance of advocacy. She described Grey Power as one of New Zealand’s most influential lobbying organisations because older New Zealanders are the country’s largest and most reliable voting group.
Members were encouraged to make access to aged care a key election issue by:
• Meeting with local MPs and candidates.
• Attending candidate forums and asking questions about aged care.
• Writing letters to editors and opinion pieces.
• Working together to present clear and consistent messages.
• Encouraging political parties to develop practical solutions before the next election.
She emphasised that politicians respond when they hear the same concerns repeatedly from voters across multiple electorates.
Conclusion
The speech concluded with a call for a coordinated approach to caring for older New Zealanders. The goal is to ensure that people receive the right care, in the right place, at the right time—whether that is at home, in hospital, or in residential care.
She argued that supporting aged residential care is not simply about funding facilities; it is about preserving dignity, supporting families, relieving pressure on hospitals, and ensuring that all older New Zealanders can access the care they need close to home. Grey Power was urged to use its influence to make aged care reform a national priority.
