Population aging will lead to slower economic growth, in the form of declining growth in real gross domestic product per person, and lead to increasing levels of government spending per person, he said in a speech in Sydney to formally launch the Australian Institute for Population Aging Research.
"It is arguably one of two of our greatest economic challenges - along with climate change," he said, "and it is a particularly daunting challenge when it comes to government finances."
Australia needs to make a holistic and comprehensive examination of the impact of an aging population, hence the need to bring academia, government and industry together in a single research entity that link the economic, cultural, environmental and social implications of the trend, he said.
Swan said the institute will publish a quarterly Longevity Index that will show the changing costs facing people who are seeking to fund their retirement.
The government's decision in its last budget to raise the qualifying age for the age pension to 67 years from 65 years was a policy decision taken with a view to adapting fiscal policy to changing demographic trends, he said.
It simply wasn't feasible to continue with an age pension drawn up a century ago, he said.
Partly because of this and other decisions, the government's medium term fiscal strategy is projected to return to a budget surplus in fiscal 2015-16, he said.
Over the next 40 years, it is projected the number of young people and the number of people of traditional working age will both increase by about 45%, he said.
Over the same 40 year period, the number of people aged 65-84 years will more than double, while the number of people aged 85 and over will increase by more than 4.5 times, he said. [rc]
ray.brindal@dowjones.com
Copyright 2009 Dow Jones & Company, Inc.
September 18, 2009
AUSTRALIA: Aging Population A Daunting Challenge, Says Swan
.
CANBERRA, Australia / Nasdaq.com / Dow Jones / September 18, 2009
By Ray Brindal, Dow Jones Newswires
The impact of Australia's aging population represents a daunting challenge for government, contributing to significant ongoing fiscal pressures, Treasurer Wayne Swan said Friday.
Population aging will lead to slower economic growth, in the form of declining growth in real gross domestic product per person, and lead to increasing levels of government spending per person, he said in a speech in Sydney to formally launch the Australian Institute for Population Aging Research.
"It is arguably one of two of our greatest economic challenges - along with climate change," he said, "and it is a particularly daunting challenge when it comes to government finances."
Australia needs to make a holistic and comprehensive examination of the impact of an aging population, hence the need to bring academia, government and industry together in a single research entity that link the economic, cultural, environmental and social implications of the trend, he said.
Swan said the institute will publish a quarterly Longevity Index that will show the changing costs facing people who are seeking to fund their retirement.
The government's decision in its last budget to raise the qualifying age for the age pension to 67 years from 65 years was a policy decision taken with a view to adapting fiscal policy to changing demographic trends, he said.
It simply wasn't feasible to continue with an age pension drawn up a century ago, he said.
Partly because of this and other decisions, the government's medium term fiscal strategy is projected to return to a budget surplus in fiscal 2015-16, he said.
Over the next 40 years, it is projected the number of young people and the number of people of traditional working age will both increase by about 45%, he said.
Over the same 40 year period, the number of people aged 65-84 years will more than double, while the number of people aged 85 and over will increase by more than 4.5 times, he said. [rc]
ray.brindal@dowjones.com
Copyright 2009 Dow Jones & Company, Inc.
Population aging will lead to slower economic growth, in the form of declining growth in real gross domestic product per person, and lead to increasing levels of government spending per person, he said in a speech in Sydney to formally launch the Australian Institute for Population Aging Research.
"It is arguably one of two of our greatest economic challenges - along with climate change," he said, "and it is a particularly daunting challenge when it comes to government finances."
Australia needs to make a holistic and comprehensive examination of the impact of an aging population, hence the need to bring academia, government and industry together in a single research entity that link the economic, cultural, environmental and social implications of the trend, he said.
Swan said the institute will publish a quarterly Longevity Index that will show the changing costs facing people who are seeking to fund their retirement.
The government's decision in its last budget to raise the qualifying age for the age pension to 67 years from 65 years was a policy decision taken with a view to adapting fiscal policy to changing demographic trends, he said.
It simply wasn't feasible to continue with an age pension drawn up a century ago, he said.
Partly because of this and other decisions, the government's medium term fiscal strategy is projected to return to a budget surplus in fiscal 2015-16, he said.
Over the next 40 years, it is projected the number of young people and the number of people of traditional working age will both increase by about 45%, he said.
Over the same 40 year period, the number of people aged 65-84 years will more than double, while the number of people aged 85 and over will increase by more than 4.5 times, he said. [rc]
ray.brindal@dowjones.com
Copyright 2009 Dow Jones & Company, Inc.
