Quick bite: Are we prepared for a rapidly aging population?

800,000 Kiwis are projected to be over 75 by 2040 – double today's numbers.

Summerset Group CEO Scott Scoullar discusses the rapidly aging New Zealand population and retirement villages integrate with aged care facilities, combining community connections with higher levels of care. Plus, did you know Summerset is New Zealand's second-largest home builder? In a bonus clip we find out about their occasional ventures into residential development.

This clip is taken from our previous episode 'Retirement villages: A hidden real estate giant?' 

For more or to watch on YouTube—check out http://linktr.ee/sharedlunch

If there are any companies, sectors, or topics you'd like to see on Shared Lunch, flick us an email at [e-mail] to let us know.

Investing involves risk. This episode is brought to you by Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia and Sharesies Limited (NZ) in New Zealand.

Information provided is general advice only and current at the time and does not take into account your objectives, financial situation and needs. We do not provide recommendations and you should always read the product disclosure documents available from the product issuer before making a financial decision.

Our disclosure documents, including a Target Market Determination for Sharesies, can be found on our website at https://sharesies.com.au/disclosures. If you require financial advice, you should seek advice from a qualified financial advisor. The views expressed by individuals are their own and Sharesies does not endorse any of the guests or the views they hold.

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:01):
You're listening to a shares these podcast We're all getting older,
all of us apparently. Are we still on track? What
to sort of hit? I think something like a million
people over seventy five by when twenty thirty forty years.

Speaker 2 (00:14):
Yeah. Look, essentially by twenty forty the population goes from
four hundred thousand Ye Zealanders over seventy five to eight
hundred thousand YEW Zealanders over seventy five. It's a massive
change in the demographic. And I think even by twenty
thirty the number of eighty five year old goes up
by one hundred and twenty five thousand, and so, like

(00:36):
it's pretty quack like it's pretty close by now if
you think in the next five years, one hundred and
twenty five thousand extra people, you know, like we need
something like thirteen thousand extra here beds in this country
just to cope with that demand. In the next five years,
I think you're going to find that this is not
enough for timement village operators in New Zealand and five
ten years time, wow, and certainly there's going to be

(00:57):
not enough here beds in New Zealand, which is actually
pretty sad and Kreb.

Speaker 1 (01:01):
It's offer a different level obviously, it's more like kind
of more like being in hospital.

Speaker 2 (01:05):
Yeah, I mean, essentially, the way our villages work is
you've got a retirement village. You live your life independently. Essentially,
you have access to gym, swimming pool, spa, you know,
everything you want to do, you live your life. But
then if you know, if you'd need to help at
a point in time in life, we've got a separate,
sort of little medical hospital there. And as I said,
they're quite homely and sort of small in the way
that designs that they're quite private. But if you need

(01:27):
resk home or hospital level support, you know, you can
essentially be in that hospital environment, but still like maybe
twenty minutes away from your house where your partner maybe
still living and stuff, and that integration with your friends
in the village that you've built up, you know, a
friendship with over the last eight or ten years. You know,
they still come across and see you can still go
home for lunch at times, and so you know, we're
trying to design facilities so that, you know, people can

(01:49):
essentially live their life until they eventually pass away in
our villages. And yeah, that's sort of how aged care
is integrated with in retirement village living.

Speaker 1 (02:01):
So your second biggest home builder.

Speaker 2 (02:04):
Second largest home building in New Zealands.

Speaker 1 (02:06):
Yeah, that's that's that's it's quite a bold plane. You've
never thought about how we could get into the wider
market there.

Speaker 2 (02:14):
At times we have, like so we have actually done
a few. At times, you buy land and maybe twelve hectares.
Ideally you want about a hecta to build a broad
out of site, so you sit there and go what
do we do with the other four hectares? And so
we bought a site in pepper Moa that had some
spear lands, so we ended up doing a subdivision development
there as well. And that has no no connection to

(02:37):
Somerset per sale, like people wouldn't know it was us.
Essentially we did all the master planning for the site,
did all plots of land, did all the running infrastructure,
all the sort of civil's works, and then essentially sold
the home builders. But it is your right to say
it's it's not that far away from being a natural
extension for us. And to be honest, you know, like
if you talk about that demographic stuff we're talking about

(02:58):
before having you know, population doubling even just for that
older part of New Zealand that's probably to be honest
enough growth there for us, even just in that segment.
Investing involves for risk you might lose the money you
start with. We recommend talking to a licensed financial advisor.

Speaker 1 (03:16):
We also recommend reading product disclosure documents before deciding to invest.