2023 Intergenerational report - implications for aged care advice
The Government released its 2023 Intergenerational Report that featured the impact of the ageing population and rising demand for aged care as main themes impacting Australia’s economy and society over the next 40 years. These trends reinforce the need for advisers to have an aged care advice solution in place to remain relevant to clients and meet the acceleration in demand for aged care services.
Other key factors influencing Australia’s economy over the next four decades include expanded use of digital and data technology, climate change and the net zero transformation and higher geopolitical risks.
The ageing of the population is expected to reduce Australia’s population growth and participation rate and along with slower long-run productivity growth should result in our economy growing at an average of 2.2% in real terms over the next 40 years compared to 3.1% over the last 40 years. Nonetheless, the economy is projected to be around two and a half times larger and incomes 50 per cent higher in real terms by 2062-63.
The ageing population is also expected to reinforce the trend towards a services-based economy.