Budget 2026 fails to meet fast-growing dementia challenge

Alzheimers NZ says Budget 2026 is another missed opportunity to prepare New Zealand’s health system for one of the country’s fastest-growing and most expensive health challenges. 

“Regrettably, the Budget again fails to meet the fast-growing impacts of dementia on individuals, families, communities and the wider health system,” says Alzheimers NZ chief executive Catherine Hall. 

“We understand Government is operating in a very constrained fiscal environment, and there are difficult decisions across the health sector. 

“But dementia does not pause while those pressures exist, and delaying investment now will only make the challenge more difficult and more expensive in the future.” 

Ms Hall notes the Budget does include funding for 272,000 additional bed nights in the residential aged care sector.  

She recognises the need for this initiative, given New Zealand’s rapidly aging population. 

But it’s not enough. She says there’s an urgent need for investment in community support services that enable older New Zealanders, including those with dementia, to live independently at home for longer. 

“It makes far more sense to invest in cost-effective initiatives that delay people’s entry for as long as possible into more expensive aged and residential care,” she said. 

Three New Zealanders develop dementia every hour – around 500 people each week. By 2050, nearly three per cent of all New Zealanders are expected to be living with dementia, while one in four New Zealanders will die with the condition. 

Ms Hall says the long-term economic and social costs of this health condition continue to grow. 

“Dementia is projected to cost the country close to $10 billion annually by 2050 in inflation-adjusted dollars. 

“That is why we continue to advocate for sensible investment in community-based support, earlier diagnosis, dementia risk reduction and services that help people remain well and independent for longer. 

“These kinds of investments not only improve quality of life for people living with dementia and their families, they can also help reduce pressure on hospitals, emergency departments and aged residential care. 

“That’s why they’re ‘investments’, not costs.” 

Many countries are already preparing their health systems for rapidly aging populations. 

Alzheimer’s Disease International last week released its latest From Plan to Impact report, highlighting the work underway internationally to fund and implement national dementia plans and strengthen community support services.  

The report also highlights the need for transparent and adequate funding to ensure national plans have a meaningful impact. 

“Other countries recognise the importance of investing early to reduce long-term health and social costs associated with dementia. 

“New Zealand risks falling further behind if we continue to delay action.  Our national Dementia Mate Wareware Action Plan remains unfunded and un-implemented, and our frontline community dementia support services are really struggling for money.” 

Ms Hall says Alzheimers NZ remains hopeful future investment decisions will recognise the importance of planning now for the country’s aging population. 

“We know there are opportunities to support people earlier, improve outcomes and use health resources more effectively over the long term. 

“We remain committed to working constructively with Government and the wider health sector to ensure people living with dementia, their families and care partners receive the support they need.”