Australia joins Singapore, China, Japan in tackling woes of an ageing population

About 1 in 4 Australians will be older than 65 within the next four decades, according to a report forecasting societal outcomes

The double whammy of an ageing, slowing population is already felt across many countries in the region like Singapore, Japan, China

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Pedestrians in Melbourne, Australia. An ageing population will place pressures on Australia’s financial resources. Photo: Shutterstock

Published: 9:30am, 25 Aug 2023Updated: 6:10pm, 25 Aug 2023

About one in four Australians will be older than 65 years old within the next four decades, up from one in six as of 2022-23, as Canberra joins the many governments in the Asia-Pacific facing an ageing problem.

A new “intergenerational report” that forecasts outcomes in Australian society released on Thursday shows that not only is the number of older Australians rising, the country’s population growth will slow to 1.1 per cent annually in the next 40 years, from 1.4 per cent in the last 40 years.

The double whammy of an ageing and slowing population is endemic of many countries in the region such as Singapore, Japan and China, where fertility rates have fallen and people are living longer.

A woman pushes a pram in Sydney. Australia’s population growth will slow to 1.1 per cent annually in the next 40 years. Photo: AP

The ageing population will place pressure on Australia’s financial resources, with the report forecasting that around 40 per cent of the projected increase in government spending in the next four decades will be driven by Australians getting older.

“Changes to the age structure and the old-age dependency ratio have economic and fiscal implications for Australia. For example, there was higher demand for education when the baby boomer generation was young, while demand for health and aged care services increases as more people age past 65,” the report said.

The intergenerational report says Australia must plan for an older population, including reducing barriers to labour force participation for older people and for “women and historically under-represented groups” who may wish to work.

Employers can make themselves more attractive to older workers by being more flexible about when and where they work, and by training older workers, the report adds.