The chart above highlights the immense benefits of modern medicine and abundance of food and shelter in Australia.
In the 2021 Intergenerational Report, Treasury has estimated the likely increase in life expectancy for Australians. As always, the females will continue to dominate, but in the case of both sexes it will be more likely that we live past 85, or even 90!
Looking ahead to 2060, (when Rob is 103), the number of people aged 65 and over will double and could represent 23% of the population. While the total population will also grow, the concerning ratio is the number of working age vs those over 65. In 1982 there were 6.6 working age to every 65 and over. Today it has fallen to 4 and by 2060 it could be 2.7! Potentially that is very few looking after very many.
This obviously has profound implication for health services, taxation, pensions and Aged Care. While it is looking at a time almost 40 years hence, most of us can already see the writing on the wall. There will be much discussion on how to find equitable solutions that do not cause harm to the older generation, but at the same time do not destroy, through excessive taxation, the incentive for younger people to achieve their goals.
Aging Boomers should also seek to protect themselves. For example, if you see a young person behind the wheel of a car, motioning you to cross the road, don’t do it! They are just trying to improve a ratio!