A major review of residential services for the elderly has shown an urgent need to plan now for a huge increase in the number of people who are going to need it.
The review report, released today, warns that by 2026 the over-65 population is expected to increase by 84 percent, from 512,000 to 944,000.
During this period the overall population is projected to grow by 20 percent, from 4.2 million to 5m.
"This will mean that by 2026 an additional 12,000 to 20,000 people will require aged residential care," the report says.
"There are currently just 34,000 aged care beds."
The review was commissioned by the country's 20 district health boards (DHBs) and the New Zealand Aged Care Association.
The report was jointly released today by those organisations and the Ministry of Health.
"The key question arising from this review was not if these pressures were going to arise but when, over what period and to what degree," the report says.
"This will pose challenges to the providers, DHBs, the Ministry of Health and the Government to respond in a manner that will proactively ensure a sustainable sector that meets the needs of New Zealanders into the future."
The report says future investment in the residential aged care sector will require a significant lead-in time.
"This is a foundation document. The information used to compile it is solid and we have confidence in its findings," said Martin Taylor, chief executive of the Aged Care Association.
"As a result we know what the challenges are.
"They are major and urgent and it will take a robust collaborative approach between the key stakeholders, particularly the providers, the DHBs and the Government to identify and implement the solutions."