Urbis Think Tank
We are getting older, but ignore octogenerians at your peril
We are getting older, but ignore octogenerians at your peril
We’re getting older. Yes, every day we know that, but statistics from the ABS today really do confirm it.
The average 65 year old is going to live to 84 if they are a male and 87 if they are a female. What is more, this expectation has increased by 2 years in the last decade. That is an extraordinary change, and the indications are that this extension of life is going to continue.
For businesses involved in property, the implications go far beyond aged care and retirement villages.
Here is some food for thought:
- These people were born in 1945 and were in their 20s in the 1960s – they will still have 1960s values even when they are in their 80s
- As the first of the baby boomers, they expect a good standard of living, and that will still be the same in their 80s
- They have benefited from the wealth effect, and most own their own homes, and other property. They will continue to hold it for another 20 years
- Although many will continue to work, they will spend significantly on leisure including travel and entertainment.
Finally – here is a statistic to remember. The ABS predicts:
In 2030 that there will be 1.7 million Australian over 80 years of age
That’s a lot of economic power.