Investment Opportunities As Australia’s Population Ages
Australia’s aging population is set to reach new levels by 2040 as the latest Australian Bureau of Statistics (ABS) data inspects recent population trends, and highlights the projected shifts in demographics in the coming years.
Director of Demography at the ABS Bjorn Jarvis said that the population was projected to double by 2075 – with a large proportion of them being elderly.
“The ageing of Australia’s population as a result of sustained low fertility, combined with increasing life expectancy is likely to continue. In 2012 Australia’s median age was 37 years old; by 2040 it could be 40.5 years,” said Mr Jarvis in a November 26 statement.
Furthermore, it has been predicted that the number of people aged over 65 is going to double by 2040, increasing from 3.2 million in 2012 up to a whopping 6.8 million. This, in turn, brings with it discussions about the retirement age and where retirees will be accommodated.
It is expected that there will be an additional 770,000 people aged over 85 in the nation by 2040, bringing the total number up to 1.2 million – or 4 per cent of the population.
All capital cities and major residential regions across Australia are gearing up for this population increase, with New South Wales expecting a 35 per cent population increase by 2040, growing from 7.3 million up to 9.9 million.
With developments occurring across the state, there could be validity in turning towards retirement complexes and lifestyle sections as investment options.
While inner cities are beginning to sprawl and grow, providing spaces for retirees to spend their golden years could prove to be a lucrative market, especially with the expected numbers of older individuals in Australia.