AUSTRALIAN Bureau of Statistics (ABS) data published in December confirm that Australia’s mean age has increased every year for two decades, and for the first time in history is on the verge of eclipsing 40.
ABS national population figures showcase the demographic challenges confronted by governments, leading to questions about the readiness of housing and healthcare systems.
Based on the ABS trajectory, Australia’s mean age will surpass 40 for the first time in the coming 12-18 months.
Retirement Living Council executive director Daniel Gannon said the data showed the mean age of Australia’s population (39.89) had grown every year since data was captured in 2005 and had increased by 6.34 per cent over this timeframe.
Mr Gannon said different states were showing different trends.
“Australia’s mean age is about to eclipse 40 for the first time since these records have been captured, marking a significant socio-economic shift in our country’s outlook,” he said.
“While Queensland is leading the battle for Australia’s retirees along the eastern seaboard with an almost 8 per cent uplift in mean age since 2005, every state and territory has seen an increase in age across the reporting period.”
But Mr Gannon said there was a serious policy edge to this demographic outlook.
“There is a silver tsunami rapidly approaching, and yet we don’t have gold-plated housing and healthcare systems to respond to these significant demographic changes,” he said. “By 2040, the number of Australians over 75 will skyrocket from two million to 3.7 million people, bringing with it obvious challenges for age-friendly housing supply, hospital and aged care bed availability.
“Our healthcare systems are already struggling under the weight of increasing demand and there aren’t enough homes on the market that offer viable rightsizing options for older Australians.
“Combine those factors with a rapidly ageing population and we have a triple threat: an ageing population, chronic housing supply deficit and struggling healthcare systems.”
Mr Gannon said retirement villages were saving the Federal Government almost $950 million every year, acting as a potential “antidote for the triple threat”.
“We know people living in retirement villages are happier and healthier for longer, prolonging the need for aged care,” he said.
“Retirement villages offer the perfect rightsizing options for retirees and those who find themselves living in homes that aren’t suited to their ageing needs anymore. These homes are better suited to families and first-time buyers.
“On the health front, retirement living residents are 20 per cent less likely to require hospitalisation after only nine months living in one of these communities, which leads to 14,000 avoided annual hospitalisations.”
These demographic changes support a Procore/Property Council Survey which reveals the retirement living industry leads all other sectors for confidence in construction activity.
The latest data shows green shoots of growth following a downturn for the September quarter, highlighting positivity and belief across the country that the retirement living sector can help alleviate pressures caused by the housing and health crises.
Mr Gannon reiterated the RLC’s calls for:
Streamlined planning systems that prioritise retirement communities
Reforming the age pension asset test
Removing retirement village eligibility threshold for Common- wealth Rent Assistance.
