Australia Not Ready for ‘Tsunami’ of Retirees: Peak Body

New analysis reveals that the proportion of Australians aged 75 and above would soar by 49 percent to over 3.2 million by 2034.

An elderly couple walk on the street in Sydney, Australia, on June 2, 2016. Brendon Thorne/Getty Images

A peak retirement living body has warned Australia is ill-equipped to deal with a rapidly ageing population.

The Retirement Living Council (RLC) released analysis showing the proportion of Australians aged 75 and above would soar by 49 percent by 2034.

“The 2024 Population Statement shows there are more than 2.1 million people aged 75 and over in Australia today, with that number projected to surpass 3.2 million by 2034,” the RLC said.

Among the jurisdictions, New South Wales (NSW) was forecast to have the largest number of people aged 75 and over at 998,200 by 2034, followed by Victoria at 805,400, and Queensland at 676,700.

Meanwhile, the Northern Territory would experience the highest growth rate (78.6 percent), from 8,400 people in 2024 to 15,000 people in 2034.

As the population grows older, the life expectancy of Australians also increases.

The RLC said the average lifespan of males would rise from 81.5 to 83.8, while females’ would increase from 85.4 to 87.1.

Concerns About Aging Population Pressure

Amid the rapid aging of the population, RLC Executive Director Daniel Gannon was concerned that the government did not have enough health, housing, and aged-care initiatives to help the country cope with a “tsunami” of older people.

“We have a triple threat on our hands in Australia when we combine a rapidly ageing population, chronic housing supply deficit, and struggling healthcare systems,” he said.

“Data doesn’t lie. These projections show the number of Australians aged 75 and over will increase drastically over the next decade, leading to housing and healthcare challenges for consumers and governments alike.

“Age-friendly housing supply, gold-plated health systems and innovative home care solutions have never been more crucial for our country.”

Gannon said the government needed to think “outside the box” and investigate all possible measures to alleviate the pressure on the aged care system.

One of the director’s suggestions was supporting privately funded retirement.

Gannon stated that retirement villages across the country were saving the federal government around $950 million (US$592 million) in aged care costs every year.

He explained that they provided older people with a “happier and healthier” living environment, which helped reduce the costs of providing care to them.

Meanwhile, National Seniors Australia (NSA), a peak body representing older people and retirees in the country, has warned elderly Australians to take precautions before signing contracts with retirement villages.

Citing complaints from residents, the NSA alleged that some villages engaged in dodgy practices, which could cause retirees to go bankrupt.

Some typical examples are exorbitant hidden fees and high refurbishment costs.

Government’s Response

Following the release of the 2024 Population Statement, Treasure Jim Chalmers said the significant number of people aged 65 and over in the coming years would pose a significant fiscal and social policy challenge.

However, he noted that the Labor government’s recent reforms to aged care laws would make aged care more “equitable and sustainable” while providing more services for older people.

“The government’s focus is on fighting inflation and delivering cost-of-living relief without ignoring the risks to growth, while also laying the foundations for a stronger economy into the future,” he said.

According to government’s data, aged care is currently Australia’s fourth largest expense program, with an estimated cost of $36.2 billion in 2024–25 and an average annual growth rate of 5.7 percent.