How An Ageing Population Will Affect Australia

July 5th, 2013

Market analyst Catherine Cashmore said that taxpayers will bear the brunt of an ageing population’s needs. With a fifth of Australians now expected to live into their nineties, and a statistically-significant drop in the country’s birth rate, Australia’s capacity to fund its population’s needs is being stretched.

It is estimated that 5000 Australians reach retirement age every week. More than a quarter of the 2009-10 government budget went towards age-related services, with this percentage expected to almost double in the next forty years.

A study by Jessica Brown and Oliver Hartwich found that migration alone will not be enough to reverse the trend. Results pointed to the country’s low fertility rate as the main problem.

Cashmore recognised the extent of the problem and the subsequent challenges faced by Australia. The property market needs to consider the requirements of this ageing population when planning future developments, taking into account young Australians’ tendency to put off buying until later and the desire from older people to remain in their own homes.

Source: http://www.propertyobserver.com.au/residential/ageing-population-poses-serious-challenges-to-australia-s-future-economy-catherine-cashmore/2013062362530