Over-85s population set to treble by 2066, straining government budget
The federal Intergenerational Report projects Australia's 85-plus population will treble by 2066, putting pressure on the government budget.
Australia's population is ageing faster than expected. The federal government's latest Intergenerational Report flags major shifts over the next 40 years.
The number of Australians aged 85 and over will treble to 1.9 million by 2066, putting additional pressure on the budget. Lower birth rates are driving the trend.
The federal budget is forecast to slip deeper into deficit, reaching 1.8 per cent of GDP by 2065-66. The report assumes productivity will grow at 1.2 per cent long-term.
This is higher than the recent 0.8 per cent average. However, economists question whether that target is realistic.
AI and the energy transition will reshape the economy. But ageing and tax-base shifts threaten to squeeze working Australians.
- 1.9 million, a threefold increase
- 85-plus population by 2066
- 1.8 per cent of GDP by 2065-66
- Budget deficit forecast
- 40 years to 2066
- Forecast period
Why it mattersYounger Australians may face higher taxes unless government cuts spending or finds new revenue sources. The scale of population ageing will test whether the budget can afford pensions and health care.
AustraliaWorking Australians will shoulder growing tax pressure to fund aged care and pensions, and policy decisions made now will shape retirement savings, superannuation, and wages over four decades.
✓ Claims checked against the source and corrected before publish. checked 3 d ago
