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Health insurance spending to rise in 'ageing population'

Health insurance spending to rise in 'ageing population'

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Date Published : Monday, September 22, 2008

Spending in areas such as health insurance and travel insurance could be set to increase as the proportion of the Australian population at retirement age increases, according to a new report.

In its first ever Business and Population Monitor report, PFK has predicted that the next 30 years will see the ratio of over-65s to 15 to 64-year-olds nearly double.

AAP reports that the study highlighted a shift in spending patterns as society gets older.

For example, health and travel are likely to become more of a concern for individuals, as are books, home improvement, electronic goods and gambling.

In contrast, cars, entertainment and clothing could see revenue drop.

Chris Allen, chairman of PFK in Australia, said that businesses that are best equipped to succeed in the coming years are the ones that are ahead of the game when it comes to meeting the challenges of a changing demographical make-up.

"These will be the largest structural shifts in the Australian economy since World War II," he claimed.

Economies such as those in "sun belt" states are likely to continue to prosper, the report predicted, as growth there is ahead of the projected five-year averages.

According to the Australian Bureau of Statistics, the country's population grew by 317,162 in the year to June 30th 2007.

At that date, Tasmania had the highest median age, at 39.1 years, followed by South Australia (38.9 years), New South Wales and Victoria (36.9 years), and Western Australia (36.4 years).

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