The Cost of Australia’s Aging Population


 
Australia’s fertility rate has been falling in recent years resulting in a shrinking workforce. And as the elderly live increasingly longer, there is an ever-growing portion of dependent retirees relying on this diminishing working-age, tax-paying group. This is made worse by the fact Australia has the fourth highest life expectancy in the world.

In 1950, there were eight workers supporting each Australian retiree. By 2050, however, there will be only 2.5. An unsustainable generational burden is therefore emerging.

Number of Workers to each Dependent (65+) in Australia
The working-age population represents those aged 15 to 64. Period: 1950-2050.
The Cost of Australia’s Aging Population




The problem is not just the growing number of retirees, but their far higher cost to the Government. The elderly consume far more resources, both in terms of pensions and medical and care costs, than any other age group. For example, in Australia, the health expenditure for the average 80-year-old is almost 7 times that of the average 20-year-old.

Without Government intervention, such as raising the retirement age or allowing a massive increase in immigration, this generational burden on the Australian taxpayer is likely to worsen. Increasingly, fewer workers will be supporting an ever-growing demographic of expensive dependents.

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