Bombshell report shows average Aussie will be 65 by 2061 – with NSW set to become first TRILLION dollar economy in the country
- Intergenerational report looks at where New South Wales will be in four decades
- 120 page report says average age will jump to 44 and then onto 65 in 2061
- Average age of citizen in 1981 was just 30 but in recent years it has aged
- Will put more pressure on health services and government with less workers
The New South Wales population will swell and age over the next 40 years, making it imperative to boost the economy, a landmark new report predicts.
NSW Treasurer Dominic Perrottet will on Monday launch the 2021-22 NSW Intergenerational Report – a once-in-five-years piece of work that looks at where the state will be in four decades’ time.
The 120 pages lay out the opportunities and challenges for the state, using demographics, housing statistics, workforce trends and key economic forecasts.
Treasury forecasters say the median age in NSW will jump to 44, a near-50 per cent increase on the median age of 30 in 1981.
By 2061, more than a quarter of the population will be aged over 65.
Treasury forecasters say the median age in NSW will jump to 44, a near-50 per cent increase on the median age of 30 in 1981 (pictured, a surfer at Bondi Beach)
The ageing population will increase demand for healthcare resources and lead to lower workforce participation rates. There’ll be fewer people of working age to support retirees.
The economic soothsayers say this means that NSW needs to find ways to supercharge the economy, like embracing productivity and investigating ways to reduce spending and increase participation rates.
The intergenerational report is a ‘vital tool’ for policymakers that allows them to plan now for the challenges of the future, Mr Perrottet said.
The father of six said he wants his kids to have the high standards of living that we enjoy – but to ensure this is achieved in a responsible manner.
‘Our children will see changes we can’t yet imagine in their lifetimes, but they will have better health, higher incomes and longer lives,’ Mr Perrottet said.
The state’s population will grow to 11.5 million by 2061, up from 8.2 million currently.
That’s four per cent smaller than would have been expected had the COVID-19 pandemic not occurred.
The increase comes despite declining fertility rates.
The ageing population will increase demand for healthcare resources and lead to lower workforce participation rates (pictured, a NSW man receives a Covid jab)
The state needs to build 1.7 million more homes to accommodate the growing population.
Treasury thinks saving for a home deposit will be slightly easier in four decades’ time. It currently takes a median income household 11.5 years to amass the funds. By 2061, the number is predicted to be 10 years.
Removing barriers like stamp duty will make it easier to move home and enable more people to buy their own homes, the report concludes.
NSW will become the country’s first trillion-dollar economy, worth around $1.4trillion by 2061 in today’s dollars.
The fiscal gap will improve. But it needs more attention to avoid the state’s debt levels growing unsustainably.
‘When you compare NSW in 1981 with now, you see how much everything has changed, but the fundamental challenge is largely the same one – we have an ageing population and a fiscal gap being driven by government expenditure growing faster than revenues,’ the treasurer said.
‘The big challenge for Australia, and politicians and policy makers of all persuasions and at all levels of government is how to we continue to transform our economy and ensure growth and prosperity for future generations.’