Media Releases > Press Articles 2002

Ageing in the next decade

Fifty-Plus News, May 2002, p4

Denys Correll, national executive director, Council on the Ageing Australia looks at the issues surrounding changes in Australia's demographic patterns

Ageing has changed from a quiet backwater for those experiencing it and those in direct care, to an ongoing major issue for the Federal Government. Its importance is highlighted by the recent announcement of the Myer Foundation's $1 million project – 2020: A Vision for Aged Care in Australia, which will analyse and report on what Australia has to do "to get it right for older Australians for the next 20 years".

The eminent futurist, Peter Drucker, argues that the society of the 21st Century will be quite different from the society of the late 20^th century due to the impossibility of sustaining existing pension systems and the inevitability of people working into their mid 70s, health permitting. He also predicts that workforce participation by the over 50's will be different. There will be more temporary and part time work. Already this is happening in Australia.

COTA has been advocating for a new approach to mature age employment. The Department of Family & Community Services has estimated that 46% of the age group 50 – 64 is not in employment and 33% of the age group are receiving some form of Government benefit or pension.

While the Government has recognised it as a major priority, a business awakening to future labour market shortages is yet to come. There are already critical shortages in some professions, such as nursing, but the solution offered by business –immigration - is not the answer. Government, business and the community need to work together to plan labour market solutions for the next decades. If we are to maintain our workforce and not lose talent, governments and employers will need to look to access to re-education and upgrading knowledge.

Politics of Ageing

Older dependent Australians incur three times the level of public spending per head as younger dependent Australians. While this is understandable given their health and income, there is a widespread belief that older people are receiving more than their fair share of Government largesse.

This raises a fundamental issue for the aged lobby. COTA, along with other seniors' lobby groups, need to examine all policies in a community context. It makes little sense for seniors to attract a disproportionate share of resources to the disadvantage of their children and grandchildren. In the next decade, the seniors' lobby will become much more involved in policies beyond the traditional areas of pensions, aged care services, health care and employment.

On the narrower front of aged care, since the 1997 nursing home debacle, the two major seniors organisations (National Seniors Associations and COTA) have been involved in all major Government working groups that are moulding the current workings and future of aged care. Government knows that major policies impacting on seniors cannot be introduced without consultation with our two organisations. This will become even more the case in the next decade.

Wealth

The rapid rise in house prices has increased the wealth of the baby boomer and older generations. In 1998 the total wealth of Australians in the age group 65-74 rose 115% from 1986 and 76.1% owned their home.

For the next decade, we can expect governments to look covetously at the wealth of the retired generation and wonder how it can be used to provide for their income, health care and long term care. Political parties on one hand want to attract the older vote but on the other hand want to find ways for older people to pay for their needs in retirement.

Ageing and Care

Bed shortages in residential care are placing more pressure on community services and post acute care. But the overall system is severely out of balance, starting with access to acute care. Many seniors fear that they will not get access to health care either in an emergency or for waiting list surgery. Consequently, over 50% of COTA's membership have taken out private health insurance. This is a scandal given that 80% of the eligible population receive an Age Pension or DVA service pension. Even with private health insurance doctors report that they are often unable to have patients admitted to private hospitals.

Access to rehabilitation and convalescent care is also poor, particularly in rural and remote Australia, resulting in unnecessary and premature admissions to residential care.

Home and Community Care is under resourced and varies in quality and availability due to funding and administration by two or three levels of government. The community has become far more aware of the standards of residential aged care and building amenity that should be expected. Residential care therefore requires considerable re-thinking regarding the capital investment required and adequate staffing levels.

Overall however, the signs for change in aged care are good; since the last election, the Minister - now for Ageing and not just Aged Care - the Hon Kevin Andrews has committed himself to dialogue with the sector. The Myer project will involve consultation between aged and financial experts, government, providers, consumers and the community. We welcome these developments and look forward to resolving problems and developing new directions over the coming decade.

(Based on address to Ageing at Home and Community Care Conference, 20^th March 2002 and amended following announcement of Myer Project.)

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