Treasurer launches Population Ageing Institute

The Treasurer, Wayne Swan, has formally launched the Australian Institute for Population Ageing Research (AIPAR) at the University of New South Wales (UNSW).

The AIPAR will help to inform debate about the challenges of our ageing population. It will also help to develop policy options for adapting to our changing population and take advantage of the opportunities this will bring.

The AIPAR has been developed within the UNSW and has brought together researchers, government and industry.

The AIPAR has launched its new Longevity Index which will track the ability of an individual to maintain their living standards over their lifetime.

Population ageing is among Australia’s most important long-term economic and social challenges, the Treasurer said.

He said the Rudd Government’s reforms to encourage workforce participation  particularly among the ageing population, investment in a productivity agenda, plus landmark reforms to the pension system announced in this year’s Budget showed the Rudd Government’s commitment to responsible economic management, as well as to the dignity for older Australians.

The new Intergenerational Report (IGR) to be released later this year is also central to the Government’s plans to tackle the long-term economic challenges we face. The report projects Australia’s population will grow by 65% to reach over 35 million people in 2049, up from around 21½ million people now.

This projection of 35 million people is significantly higher than the previous projection of 28.5 million in 2047. The difference is largely driven by a greater number of women of childbearing age, higher fertility rates, and increased net overseas migration.

“The AIPAR’s Longevity Index – the nation’s first – is an important contribution to those seeking to understand the changing costs facing those who wish to fund their retirements. These costs are affected by changing interest rates, inflation and, of course, longevity,” said Mr Swann.

The Index was developed by Professor Michael Sherris and Professor John Evans from Actuarial Studies at UNSW’s Australian School of Business.

Mr Swan also announced membership of the AIPAR Leaders Forum, which will assist AIPAR to formulate its research agenda, build links with stakeholders and raise its profile and standing.

They are: Marc de Cure (Chair); Professor John Piggott (Director AIPAR); Dr Jennifer Alexander (Royal Australasian College of Physicians); Cameron Clyne (National Australia Bank); Craig Dunn (AMP); Professor Les Field (UNSW); Dr Jeff Harmer (FaHCSIA); Dr Ken Henry (Federal Treasury); Mark Johnson (PricewaterhouseCoopers Australia); Matthew Quinn (Stockland); Heather Ridout (Australian Industry Group); George Savvides (Medibank Private); Professor Peter Shergold (Centre for Social Impact) and Glenn Stevens (Reserve Bank of Australia).

“AIPAR will work in partnership with industry and government, including its two founding sponsors – The Australian Prudential Regulatory Authority and PricewaterhouseCoopers Australia. It will work closely with the public, private and not-for-profit sectors as well as national and international research institutes,” said Professor Piggott.