Population ageing: crisis or transition?

This discussion paper addresses the widespread perception that Australia is facing an ‘ageing crisis’. This viewpoint holds that population ageing will result in a smaller proportion of working age people trying to support an increasingly dependent older age group and that this will create an unsustainable drain on public funds. This paper analyses the assumptions underlying the ‘crisis’ argument and the relevant empirical evidence. These assumptions are that older people are a social and economic burden, that population ageing will result in a critical dependency ratio imbalance, and that there is a correlation between the size of the aged population and increased public expenditure. The author argues that these assumptions are largely invalid and that concern over the ‘ageing crisis’ is not justified by the evidence. The transition to an older population can be facilitated by promoting the accrued benefits of equitable access to healthcare, education, employment and retirement income. Policies should be focused on overcoming discriminatory attitudes towards older people, ensuring security of employment over the life course, and making a commitment to gender equity in both public and private arenas. Show less