Investing In Older Adult Vaccination: A $1 Billion Opportunity For New Zealand’s Health And Economy

A new report released today highlights the significant return on investment (ROI) New Zealand could see from a comprehensive older adult vaccination programme.*

The report - Prevention Pays: The Economic Value of Adult Vaccination - underscores how a nationwide publicly funded vaccination programme for influenza, shingles, and respiratory syncytial virus (RSV) for those aged 65 and over can significantly reduce pressure on the New Zealand health system while generating substantial economic benefits.

The report, commissioned by GSK and independently conducted by Evaluate Consulting, an economic consultancy specialising in cost-benefit analyses and social policy, shows that investing in adult vaccination would result in an return on investment (ROI) of $1.93 - $2.17 for every dollar spent, providing a total economic benefit of over $1 billion over four years.

In addition to preventing over 8,000 hospitalisations, 137,000 GP visits, and over 2,400 emergency department presentations, the vaccination programme would also increase productivity and volunteer contributions from older adults.

Key highlights from the report include:

• A return on investment (ROI) of $1.93–$2.17 for every dollar invested in the vaccination programme. • Over 8,000 hospitalisations and 137,000 GP visits could be prevented over four years.

• 4.8 million additional carer hours and 3.9 million additional volunteer hours, over four years, as a result of older New Zealanders staying healthy

• A total net benefit of over $1 billion at 60% vaccine uptake (similar to the current influenza vaccination) when factoring in healthcare savings, productivity, and caregiver contributions.

Hon Steven Joyce, Former Finance Minister and Director of Joyce Advisory Ltd commented on the report, saying: “As our population ages, the need for innovative approaches to healthcare has never been more urgent. The findings in this report offer a clear pathway to improving the health of older New Zealanders and strengthening the broader economy, all while reducing the stress on the health system. The return on investment for this sort of public vaccination programme is undeniable, providing nearly double the value for every dollar spent, even when measured on a very conservative basis.”

Chair of General Practitioners Aotearoa (GPA), Buzz Burrell added: “Vaccination is one of the most cost effective health interventions available. By preventing common illnesses, we reduce the strain on our overstretched health system, free up critical resources, and, most importantly, improve the lives of older New Zealanders. This report makes a compelling case for increased investment in adult vaccination.”

The findings of the Value of Adult Vaccination report come at a time when demand on New Zealand’s healthcare system is growing due to an aging population. The report shows that preventative healthcare, like an older adult vaccination programme, offers one of the most cost-effective ways to reduce hospital pressure, improve quality of life for older New Zealanders, and boost the economy through increased productivity, including volunteer and carer contributions.

Older adults are a key economic force in New Zealand: around 25% of adults over the age 65 are in paid employment, ** around 1 in 8 are an informal carer3, and nearly 60% of adults aged 65-75 undertake volunteer work.****It is estimated that in 2022 the economic contribution of caring was $17.6bn or 5.4% of GDP. ***

Amanda Southcombe, General Manager, GSK New Zealand said: “We are committed to improving the health of communities around the world. This report highlights the clear economic and social benefits of investing in adult vaccinations for older New Zealanders. By focusing on prevention, we can ensure that individuals remain healthy, stay active, and contribute to society, while reducing the long-term burden on our healthcare system and deliver significant returns for everyone,” she said.

The Value of Adult Vaccination report can be downloaded by government and policy makers here: Prevention Pays: Economic Value of Adult Vaccination in New Zealand

References:

*Evaluate Consulting PTY LTD. Commissioned by GSK. Prevention Pays: The Economic Value of Adult Vaccination Report. 2025

**Ministry of Social Development NZ. Ageing Workforce: Opportunities and Challenges. Accessed April 2025. https://www.msd.govt.nz/documents/what-we-can-do/seniorcitizens/older-workers-employment-action plan/the-ageing-workforce-briefing-paper-future-of-work-governance-group-meeting-4-may-.pdf 

***Infometrics Report for Alzheimers NZ, Carers NZ, the Carers Alliance, IHC and the Ministry of Social Development. The economic contribution and sacrifices of unpaid family, whanau and aiga carers in New Zealand. November 2022. Accessed March 2025. https://carers.net.nz/wp-content/uploads/2022/12/ Infometrics-Economic-Contribution-of-Caregiving-November-2022-FINAL.pdf

****Stats NZ. Wellbeing Statistics: 2021 (supplementary). Accessed March 2025. https://www.stats.govt.nz/ information-releases/wellbeing-statistics-2021-supplementary/ TAPS NP22677 - NP-NZ-AIS-PRSR-250002

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