Now that Australia Day is behind us and the official 2010 work year has begun there has been no shortage of news affecting investors. As a baby boomer I note that the latest intergenerational report reiterated what has long been widely known. Australia is headed towards a future with too many old people and not enough workers to support them.  The following excerpt form the report highlights a challenging environment for healthcare.

Population ageing reduces the proportion of working age people supporting people aged over 65 years. The proportion of working age people is projected to fall, with only 2.7 people of working age to support each Australian aged 65 years and over by 2050 (compared to 5 working aged people per aged person today and 7.5 in 1970).The rate of improvement in average living standards is projected to fall, placing pressure on Australia's capacity to fund the spending pressures associated with an ageing population, particularly in terms of health spending. For a copy of the full report click here

This report has generated numerous articles on how baby boomers are unprepared and underfunded for retirement. If you are relying on the government to provide for you in your retirement and to fund the provision of quality health services you might be disappointed. Whilst universal healthcare is desirable and most Australians assume it is their right, it is in fact a privilege that is becoming increasingly unaffordable for governments faced with an aging population. My advice is to assume the worst and take steps to fund your own retirement rather than risk being old, poor and disappointed. Read Michael's full commentary here.




Michael Lannon
Managing Director