There’s been a lot of media coverage relating to the Intergenerational Report highlighting the fact that an ageing population will put a strain on the economy in the future. There has been a tendency to treat these future older people as an inconvenience that the workers will have to support.
Not surprisingly, these disparaging reports have generated some resentment from todays over 60s. A common response is “We have worked for 40 – 50 years and contributed to the wealth of the nation, have raised families, paid taxes, bought homes and don’t like being treated as a drag on the economy.”
Another issue that these media stories are conveniently forgetting is that it is retirees who are major contributors to all the community volunteer work which saves governments at all levels billions of dollars every year. That’s hardly being a drag on the economy.
While it must be acknowledged that Australia, like most developed nations, has an ageing population and governments must factor this into their forward planning, it is not necessary to be so pessimistic and disrespectful about it. There are some factors which will lessen the impact of this demographic trend.
First, most people retiring in 20 or more years’ time will have access to far larger superannuation payments than many people retiring today. While today’s retirees have only had access to compulsory superannuation for 23years, this figure will climb to 43 years for someone retiring in 2035. This should substantially reduce the pressure on the Age Pension.
Secondly, the norm for most people retiring now is to seek some part time / casual work and this trend is expected to continue. As well the Pension age is set to climb till it reaches 70 in 2035. So at the time when the ageing population is at its highest, a lot of those older people will still be working either full or part time.
Health is the area which seems to concern a lot of politicians. Again the government is making the assumption that the majority of older people will be frail and sick and overwhelm the Health Services. Some undoubtedly will be in poor health, but with a little luck, a healthy diet, regular exercise and a positive attitude, many older people can still be in reasonable health. Clearly governments have to encourage everyone to live a healthier lifestyle and stop expecting doctors to cure all ailments with pills and operations.
A little more respect for the over 60s of today and 2035 wouldn’t do any harm.