Opportunities in Aged Care

By Victor Bivell

Australia's aged population is growing and this brings the opportunity to both improve aged care and provide a range of business products and services to this generally well-to-do market.

The social and care issues around our ageing population are recognized by Federal and State Governments. In its recent Budget for example, the NSW State Government says "With the first of the baby boomers turning 65 in 2011, this year marks the start of 18 years when they will move into traditional retirement age. This ageing trend will have both economic and fiscal consequences."

The Budget Papers say the population will continue to age, and this will increase growth in government expenses. Average health related expenses are projected to grow at 6.2 per cent per year with ageing a key driver.

Australian Bureau of Statistics data shows that for both males and females the population numbers starts to fall away noticeably from around age 48. From there, it is a fairly steady decline in numbers until there are few of us left who make it to the mid to high 90s.

Well known social commentator Bernard Salt talks about this theme in his latest book "The Big Tilt", and he includes a satirical interview where a tonight show host interviews the Grim Reaper about the imminent "Boomergeddon".

Business Opportunities

This long term demographic trend is opening opportunities for business to provide many of the products and services that assist with the ageing process - diagnostics, medical care, pharmaceuticals, specialized housing and, inevitably, funeral services.

Three investments that are profitably meeting this market while operating ethically and sustainably are Sonic Healthcare Ltd, Australian Unity Healthcare Property Trust, and InvoCare Ltd.