The aging population is a well-appreciated phenomenon and a challenge for policy makers around the world. The combination of demographic changes resulting from declining birth rates, a shrinking working population and medical advances present policy challenges and a deepening opportunity set for investors. This article provides a broad view of the growing population of older Australians, their increasingly diverse needs, and how investors can play a role in meeting their needs and achieving compelling returns.
The Australian seniors’ population (persons aged 65 and over) has grown considerably over recent decades, representing over 4.2 million or around 16% of today’s population, compared with one million in 1970. This cohort is projected to represent 21-23% of our population by 2066. In absolute terms, the increase may seem much more significant, as it represents approximately six million people.