“Just remember, once you’re over the hill, you begin to pick up speed.” — Charles Schulz.
Australia’s miraculous run of 25 consecutive years without a recession stands on many legs. Cheaper credit, a commodities boom and the rise of dual-income households played their parts, as did falling corporate and individual tax rates. And a splash of luck.
But there was another driving force behind Australia’s epic run of growth: booming population growth, at least by developed-market standards. Australia’s population has grown at 1.3 per cent annualised over the past 25 years, well ahead of the US (1 per cent) and the UK (0.5 per cent).
Immigration has been the tailwind separating Australia from the developed world – a net gain of one immigrant every two minutes and 36 seconds, according to the Australian Bureau of Statistics. But the key factor in population growth has been increasing life expectancy. An Australian woman born today can expect to live 4.1 years longer than one born in 1991, and men are extending their lives at an even faster rate, by 5.9 years over the same period.
An ageing population has practical financial consequences at the macro and micro level, and investors would do well to position themselves ahead of the curve…
Continue Reading “How to Prosper From an Ageing Australia“
The above article contains general investment advice only (Lakehouse Capital Pty Ltd is the Corporate Authorised Representative of The Motley Fool Australia Pty Ltd AFSL 400691).