5. Responding to ageing communities
- 5.1 Implications of ageing
- 5.2 Indigenous communities
- 5.3 Housing
- 5.4 Current policy strategies
- 5.5 Potential future directions
This section proceeds by noting the changing demographic profile of communities and the implications for service delivery, social participation and volunteering. It outlines how demographic change will also have important consequences for Indigenous communities. Finally it examines trends in home ownership and the changing housing needs of older Australians.
5.1 Implications of ageing
While all states face an ageing population the extent of this varies
States with older and potentially shrinking populations may have significantly different economic and social conditions, including housing markets, labour markets and demand for age-related services. Given differences in the age composition of states and territories, priorities and service delivery may differ in future between locations. The map below illustrates the different age structures that will arise in each state/territory. Tasmania is ageing fastest, while the Northern Territory is ageing the slowest.
Figure 12: Growth in the proportion of the population over age 65, 1999-2051 by state and territory
Source: Australian Bureau of Statistics (ABS) 2000, Population Projections 1999 to 2101, Cat. No. 3222.0, ABS, Canberra (series II).
The population of some states will commence declining over the next 50 years. This is most notable in South Australia and Tasmania where population declines are forecast from 2026.
One risk of structural ageing is an increasing number of older people experiencing social isolation
Although most older Australians lead active, busy lives, numerical ageing is likely to increase the number (if not the proportion) of older people experiencing social isolation and loneliness. Major life events-such as retirement from paid work, moving house, a major illness or caring for an ill person, and bereavement-may contribute to isolation or reduce an older person's ability to join social activities. Women may be more likely to experience isolation given their propensity to live longer than men.
Other issues that may contribute to social isolation may include lack of awareness of information about community services, and cultural and/or religious or language barriers. Around one in five older Australians were born in a non-English speaking country, and a proportion are unable to communicate effectively in English (Jackson, 2002). The number of older people born in non-English speaking countries will grow in coming decades as today's working-age cohorts, with higher concentrations of people born overseas, move into older age.
Structural ageing is likely to increase the number of older people wishing to participate in volunteering
Community and non-profit organisations often recognise and utilise the knowledge, skill and wisdom of older people. In 2000, around 528 100 people over the age of 65 undertook volunteer work. Older Australians have made important contributions to the community and welfare, religious and health sectors. In particular, education, training and youth mentoring may provide opportunities for fostering intergenerational linkages, where the life skills of older people can be shared with younger generations.
While people in all age groups are participating more often in volunteer services, the number of older volunteers will also increase due to the growth of older cohorts. Increased social participation among older Australians has the potential to strengthen communities and reduce the risk of isolation for older people.
5.2 Indigenous communities
As explained below, the youthful age profile of the Indigenous population raises a different set of priorities to those raised by the ageing of the total Australian population.
The ABS 2001 Census indicated that there were over 410 000 people in Australia who identified as being of Indigenous origin, representing 2.2 per cent of the total Australian population (up from 1.6 per cent in 1991). However, adjusting for undercounting and numbers where ancestry was not stated, the ABS estimates the resident Indigenous population in 2001 was 460 140 (2.4 per cent of the total estimated resident population). Some 30 per cent of Indigenous people live in major urban areas, 42 per cent in other urban areas, and 27 per cent in rural areas compared with 62 per cent, 23 per cent and 14 per cent respectively for the general population.
The Indigenous Australian population has a youthful age structure
The Indigenous fertility rate is higher than that of the general Australian population. The total fertility rate for the Indigenous population was 2.14 in 2001 compared to 1.73 for the overall Australian population. The median age of Indigenous mothers in 2001 was 24.8 years, compared to 30.0 years for all women. These characteristics all contribute to a much younger Indigenous age structure compared to that of the overall population (as seen in Figure 13 below.)
Figure 13: Indigenous age structure compared with non-Indigenous age structure
Source: Estimated Resident Population, based on ABS Census (2001).
Preventive investment in the years of early childhood, school-to-work transition, and family formation may be particularly important in the future. Although gains have been made in areas such as reducing infant mortality rates and increasing engagement in education, high levels of unemployment, family violence and housing problems persist within many Indigenous communities. In coming decades this may undermine the future economic security of the growing numbers of Indigenous people entering workforce age and progressing to older age.
In the current decade, the number of young Indigenous people entering working-age will grow rapidly-a challenge for economic participation
According to the ABS, the Indigenous working-age population is predicted to grow by almost 29 per cent, from 221 542 to 284 637, between 1996 and 2006.
This population growth, combined with an already high unemployment rate (23 per cent overall, and higher in particular communities), suggests that a continued focus on youth-to-work transitions will be necessary.
Continued encouragement of economic opportunities in remote Australia is necessary, together with support for young people and families to assist them to take up work, education and training opportunities. Between 2001 and 2016, the Indigenous population in remote Australia is projected to increase by 8234, from 36 671 to 44 905, with most of this growth being among people of working-age.
Indigenous people's health problems impair economic participation and limit access to retirement savings
Life expectancy for Indigenous peoples is much shorter than the total Australian population-56 years for Indigenous males (21 years less than for the total Australian male population), and 63 years for Indigenous females (19 years less than for the total Australian female population). Health problems often also contribute to early withdrawal from the workforce and reduce economic security in older age. Continuation of efforts to improve Indigenous health would improve the social and economic outcomes of Indigenous people.
5.3 Housing
Home ownership increases with age and reduces recurrent expenses for older people
The tenure of households is strongly related to life cycle stages, generally following a pattern of renting in early adulthood; moving to home purchase and mortgages as partnerships are formed and children are born; and owning the home outright in older age. High levels of home ownership among older Australians provide low recurrent cost housing, resulting in better retirement incomes for the aged with relatively lower income support needs (1999 ABS Survey data).
However, some older people in private rental do have relatively high recurrent costs. According to FaCS research, 6.4 per cent of elderly couple households, and 9.5 per cent of elderly single households, pay more than 30 per cent of their income in private rental costs. 7 Older people comprise a large share of public housing tenants with almost 152 000 older people in public rental housing in 1999. Government subsidisation of rental costs alleviates some of the financial pressures for people with lower incomes.
There are concerns that home ownership will decline into the future, but this trend is uncertain and remains too early to call
The decline in home ownership has been most marked in the 25 to 34 year and 35 to 44 year age groups, with declines of close to nine and eight percentage points respectively from 1988 to 1997-98. This trend has been related to a host of broader social and economic trends including younger people staying in education longer, delaying marriage, and having their first child later in life.
However, analysis by Mudd et al. (1999) suggests that home ownership rates of different age cohorts tend to converge as each cohort ages. In other words, at later ages the gaps in the rate of home ownership narrow as younger cohorts begin to 'catch up' with older cohorts. For these reasons, and the relatively simplistic nature of much of the modelling which suggests longer-term declines in home ownership, FaCS considers that claims of a crisis in home ownership are not sustained, in particular in the light of the strong recent growth in first home buyers.
Nonetheless, it will remain important for policy makers to monitor these trends into the future, as this may have implications for future retirement security and demand for public and private rental housing.
Older people wish to 'age in place' but can find obstacles if they decide to move
Research by the Australian Institute of Family Studies (Winter 1999) highlights that older Australians have generally shown a strong preference to remain in their homes and to 'age in place'. While older Australians generally want to retain their housing, there are also factors which prevent older people who wish to move from doing so. These include:
- Lack of flexibility: especially at a state/local government level with, for example, planning regulations that limit the type of housing that may be constructed.
- Transactions costs: such as stamp duty on property transfers, which make moving to more suitable housing more expensive. Home buyers may pay between $2900 to $15 000 in stamp duties on the purchase of a median priced house.
Structural ageing will drive changes in the housing market to better suit older people
The right type of housing may become an increasingly important element of maximising independence as people grow old. As noted by a range of commentators (eg Kendig 1999), the building and construction industry may find a growing market in supplying housing that can be adapted to support a person throughout the life cycle. There may also be increasing demands for the provision of innovative housing solutions such as 'cluster housing', which provides independent stand-alone units supported by a network of domiciliary services and shared communal facilities.
5.4 Current policy strategies
Older Australians have been identified as a key target group for the Stronger Families and Communities Strategy
In response to the social and economic effects of ageing, the strategy seeks to:
- Encourage older people to remain engaged in the community by funding projects such as community gardens and volunteering.
- Ensure the provision of care between generations by funding projects that support grandparents who have caring responsibilities, including in Indigenous communities.
- Build social capital by supporting projects that bring community members together to identify local solutions to local issues, and by investing in leadership activities targeting non-traditional leaders such as older women.
Other community initiatives relevant to older people include:
- The Voluntary Work Initiative, designed specifically to support income support customers, particularly those aged 50 and over, provides a matching and referral service to voluntary organisations.
- AWT-A Fair Go for Mature Age People helps people from 50 to Age Pension age who receive income support payments to improve their job prospects.
- The Family and Community Network Initiative (Attachment F) funds projects that enhance the capacity of communities and services to work together more effectively.
- The Prime Minister's Community Business Partnership (Attachment F) encourages businesses in local regions to generate opportunities for older workers and other groups.
- The Commonwealth working with state/territory governments to extend concessions available to pensioners to CSHC holders, including reciprocal transport concessions to state Seniors Card holders travelling interstate. This initiative targets self-funded retirees.
Current policy developments: Indigenous communities
- AWT measures aim to provide more individually tailored support.
- The Community Participation Agreements initiative, designed to increase social and economic participation in remote areas.
- Projects funded under programs such as the SFCS, the Family and Community Networks Initiative and Reconnect (Attachment F) are focused on enabling community-based groups to address aspects of Indigenous disadvantage through initiatives employing local capacity building, cultural appropriateness and self-governance principles.
- Indigenous Parenting and Family Well-being program (Attachment F) focus on strengthening families.
- FaCS funds many Indigenous child care centres, playgroups and disability services, and provides funds to the states and territories for Indigenous housing programs and crisis accommodation.
- Initiatives to improve financial literacy and budgeting include assisting the Traditional Credit Union in the Northern Territory with community education activities, and funding the Cape York Family Income Management project (Attachment F).
- Strengthening Indigenous Communities pilots are being developed jointly by FaCS and other Commonwealth agencies. These pilots will work in a 'bottom up' way with a small number of Indigenous communities to identify innovative ways of achieving positive outcomes from government expenditure.
- Indigenous housing bilateral agreements provide a framework for the Commonwealth state and territory governments to share responsibility for housing outcomes for Indigenous people by working together to improve and simplify the planning, coordination and delivery of Indigenous housing programs.
- In 1996, Commonwealth, state and territory housing ministers established the Commonwealth State Working Group on Indigenous Housing to develop practical strategies to improve housing outcomes for Indigenous Australians.
Current policy developments: housing
- The Commonwealth-State Housing Agreement (CSHA) provides funding to assist those whose needs for appropriate housing cannot be met by the private market. The key areas of focus under the current CSHA include structural ageing.
- The Commonwealth Rental Assistance program (Attachment A) is a non-taxable income supplement payment added on to the pension, allowance or benefit of eligible income support customers, including older people who rent in the private rental market.
- The Commonwealth Government provides funding for the Supported Accommodation Assistance Program (Attachment F) which provides support accommodation services to the homeless, including older Australians.
- Owner-occupied housing is treated favourably by the tax and social security systems.
5.5 Potential future directions
The key to meeting the housing needs of older people in the future relates to choice and ability to change dwellings, affordability and adaptability. Collaboration between government, the private sector and the community sector will be important. A range of possible policy interventions could be made including:
- Adaptable housing: a greater focus on innovative housing services, which can more easily meet the aspirations of older people to 'age in place'.
- Utilising home equity: initiatives to allow aged homeowners to access the equity in their home, and which overcome previous low rates of acceptance of such products.
- Reducing costs: including transaction, conveyancing duty and other costs associated with moving house to meet changing life cycle circumstances including older age.
The rising number of Indigenous people entering working-age in the coming decades will raise longer-term challenges for economic participation. Further improving health outcomes would also assist participation and improve retirement savings.
A larger number of older Australians may seek opportunities for volunteering in future. Supporting the social inclusion of older Australians will be important.