National Seniors find older Australians contribute more than budget deficit

As the federal Government prepares to cut access to the age pension, a new report reveals that rather than draining the economy, older Australians are putting in 1.4 times more than the entire 2013 budget deficit.

Posted May 11th 2015

by Margot White

<p>Grandparents provide 937,000 children care for an average 8 hours per week according to the National Seniors report.</p> — Grandparents provide 937,000 children care for an average 8 hours per week according to the National Seniors report.

Calculating the dollar value of their volunteering, grand-parenting, caring and company loyalty, the National Seniors report Appreciating value: measuring the economic and social contributions of mature age Australians has found that the over-45s contribute $65 billion each year. This is 4.2 per cent of GDP.

National Seniors chief executive Michael O’Neill says: “These findings confirm that older Australians are a highly productive, essential part of the modern economy.”

“Older Australians are volunteering in art galleries, schools and hospitals. They’re looking after grandkids so mum and dad can work; and, in many cases, they’re quietly caring for their own husbands and wives” he says.

“In the paid workforce, their loyalty and low rates of absenteeism are worth, in human resource terms, around $27 billion to employers” according to Michael O’Neill.

“Simply put, older Australians paid their way through their working years and, now, are more than paying their way in retirement,” he said.

Key Findings of the report:

The un-costed social and economic contributions of the over-45s amount to $65.7 billion or 4.2% of GDP, per annum. This is five times aged care expenditure of $13bn (Commission of Audit, 2014).
$1.5 billion is in grandparent care – grandparents provide 937,000 children (age 0-12) care for an average 8 hours per week.
$20.5 billion is as informal carers – 541,000 over-45s provide care for people with profound limitations, and 1,166,000 provide care for others with mild limitations
$16.3 billion is through volunteering – 1,632,677 mature age Australians volunteer for an average 6.09 hours per week
$27.4 billion per annum is in net human resources benefits – older workers remain with employers 3.7 times longer than younger workers resulting in calculable recruitment, training and absenteeism benefits

The report was written for the National Seniors Productive Ageing Centre by Swinburne University Associate Professor Elizabeth Brooke.