The implications of ageing for economics and politics

by John Daley

Presented at the IBR Post Retirement Conference, Tuesday 10 October

Conventional wisdom tells us that the global population is ageing, governments won’t be able to afford future pension and health care costs, people won’t have enough for their retirement, and governments should encourage people to save more. But in this presentation to an International Business Review conference on post-retirement, Grattan CEO John Daley says that, at least for Australia, the conventional wisdom is wrong. He shows that our population is ageing slower than most, our current retirement settings are unsustainably generous, our current retirement incomes are adequate and becoming more so, and our governments need to wind back transfers to older households and increase taxes on investments.