IDEAS home Printed from
   My bibliography  Save this paper

Coping with Population Ageing in Australia


  • David Carey


As in other OECD countries Australia’s population is ageing progressively. On unchanged policies, this will increase government outlays for public pensions and health care, causing a deterioration in budget balances, and reduce economic growth (mainly by lowering growth in the labour force). Nevertheless, the prospective deterioration in Australia’s budget finances is much less than in most other OECD countries because the government only provides the first pillar of retirement income arrangements and means tests this age pension. Moreover, superannuation (private pension fund) benefits are growing, reducing entitlements to the age pension. Even so, the budget costs of population ageing could be lowered by reducing the scope for early retirees to draw on superannuation savings and by requiring individuals to prefund part of the costs of long-term aged care. But the greatest challenge facing Australia policy makers in reducing the costs of population ageing is to roll back the trend ... Comme dans d’autres pays de l’OCDE, la population australienne vieillit peu à peu. Si l’on ne prend aucune mesure pour faire face à ce vieillissement, il gonflera les dépenses publiques au titre de pensions et de la santé, ce qui se traduira par une dégradation des soldes budgétaires, et réduira la croissance économique (due en particulier à la faible progression de la population active). Néanmoins, la dégradation prévisible des finances publiques en Australie est moindre par rapport aux autres pays de l’OCDE car le gouvernement prend en charge seulement le premier pilier des dispositifs de revenu pour la retraite qui est soumis aux conditions de ressources. Par ailleurs, les cotisations de retraite (fonds de pension privé) augmentent, réduisant ainsi les droits à la pension de vieillesse. Cependant, les coûts budgétaires du vieillissement de la population pourraient être réduits en diminuant les possibilités pour les pré- retraités de retirer leur épargne des fonds de retraite ...

Suggested Citation

  • David Carey, 1999. "Coping with Population Ageing in Australia," OECD Economics Department Working Papers 217, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:217-en

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Jeff Borland, 2005. "Transitions to Retirement: A Review," Melbourne Institute Working Paper Series wp2005n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Alfons Palangkaraya & Jongsay Yong, 2009. "Population ageing and its implications on aggregate health care demand: empirical evidence from 22 OECD countries," International Journal of Health Economics and Management, Springer, vol. 9(4), pages 391-402, December.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:217-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.