Fed: Study seeks to explode myth of generation timebomb

AAP General News (Australia)
04-06-2004
Fed: Study seeks to explode myth of generation timebomb

By Krista Hughes, Economics Correspondent

CANBERRA, April 6 AAP - An ageing population might be a blessing rather than a curse
thanks to the health, wealth and good education of the babyboomer generation, new research
has found.

A study by left-wing think-tank The Australia Institute took issue with the gloom and
doom surrounding predictions the number of over-65s would triple over the next 40 years.

Australians who were set to reach retirement age over the next five or so years were
generally better-educated, healthier and wealthier than previous generations, it said.

Many babyboomers had accumulated substantial savings and property and rather than being
a drain on the public purse in their retirement, would spend up large on hobbies, holidays,
and treats for grandchildren.

"These people should be viewed as a societal resource rather than a societal burden
since older people are mostly leading independent, productive and socially useful lives,"

report author Judith Healy said.

"The societal burden view, based on previous generations of older people, is now outdated."

The government's intergenerational report predicted the ageing population and falling
birthrate would create a $90 billion Budget black hole by 2042.

The report warned commonwealth spending on health, aged care and social security would
balloon over the next 40 years, with health spending alone more than doubling to 8.1 per
cent of GDP.

But Dr Healy, from the Australian National University, said there was no proven link
between ageing and higher health spending, pointing instead to medical advances.

She said it was also unfair to blame the babyboomers, born after 1946, for a rise in
aged care costs when they were not blamed for higher education costs as children.

"The members of this large generation have lived in prosperous times and are healthier,
better educated and wealthier than those of previous older generations," the report said.

"We can expect future generations of older people to continue for longer in the workforce,
to contribute more through taxation, and to fund more of their own retirement and health
and social care."

But the government's push to keep people in the workforce longer had to be matched
by incentives, flexible hours and a revision of the ageist attitudes of many employers.

Dr Healy said recent retirees were filling the void in volunteer work caused by more
middle-aged women taking up paid work, and typically had strong links to their communities.

They were also involved in their families, providing informal care to grandchildren
as well as financial and practical help.

AAP kmh/sb/jv/de

KEYWORD: AGEING

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