Intergenerational report explained

As the proportion of working age people supporting those aged over 65 reduces, so does the capacity of the Australian Government to fund the needs of this ageing population. But is this really news?

As the proportion of working age people supporting those aged over 65 reduces, so does the capacity of the Australian Government to fund the needs of this ageing population. But is this really news?

The findings of the 2010 Intergenerational Report have been published and, as suspected, the news for Australia’s ageing population is not great but what are the facts and figures which matter?

1. By 2050 there will be 2.7 working people to support each Australia aged over 65. This compares to the current ratio of five working people.
2a. An ageing population has a negative effect on economic growth and government finances – lower tax revenue means less money to spend on health, services and benefits.
2b. Economic growth in terms of real Gross Domestic Product (GDP) is projected to slow to 2.7 per cent over the next 40 years as a result of fewer people in the workforce. This compares to 3.3 per cent per annum presently.
3. Combating slower economic growth as a result of an ageing population can be achieved by increased productivity of those remaining in the workforce – those still working can expect longer hours and more output.
3a. Sustainable population growth is the key to managing the impact of an ageing population. A higher birthrate and controlled immigration will assist to redress the balance.
4. Continued improvements to training and social skills will help increase the opportunities for those who may otherwise face retrenchment or are disadvantaged due to age, health and education
5. Improving infrastructure in terms of schools, transport and communication will provide a stable base from or on which to grow the nation’s economy
6. Investment in health and pension reforms is required to provide support to those who need it most.
7. Budget measures will be required to ensure that fiscal pressures from an ageing population can be addressed and the impact reduced.
8. Social inclusion is key to ensuring all Australians can become involved in the task of keeping the nations growth manageable.
Find out more about the 2010 Intergenerational Report





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