Rafal Chomik and Sophie Yan

In Australia, the topic of housing occupies many a newspaper column, barbeque conversation, and research report. Just over half (or $6.3t) of Australian household wealth is stored in housing, distributed across 10.3m residential dwellings, which are among the most expensive in the world (Demographia 2018; AFR 2019). The family home not only fulfils everyday needs as a shelter and a place for family and social relations but can also act as a store of value and guarantee financial security in retirement – it is both nest and nest egg. Yet the same cannot be said about those who rent their home in retirement. For them, security of tenure and finances is often lacking.

Housing outcomes therefore affect financial and personal health and wellbeing over the lifecycle. And as lifespans increase and Australia’s population ages it is important to continue to examine the interactions between demography and housing. This research brief explores the current state and projected future of such interactions, marrying policy developments with the latest data and research, particularly from CEPAR researchers. The brief complements previous CEPAR research briefs, including a series on retirement incomes in Australia and on aged care in Australia. In fact, homeownership is often considered as another pillar of the retirement income system, in addition to the Age Pension, and mandatory and voluntary superannuation. Much has been written about housing, so the aim here is to apply CEPAR’s expertise in demographic change to bring new insights to this complex topic.

This brief is in three parts. It first tackles the dynamics of the housing purchase in working life, describing the patterns of housing tenure across generations, demographic and market dynamics, the likely future effects of demography on housing demand, and the policies that can affect home purchase outcomes, particularly taxes. In part two, the brief considers housing consumption in old age, discussing the retirement income context, the value and distribution of housing wealth, the preference of older people for remaining in their community, and how older people bequeath or can make better use of the equity in their home in retirement. Finally, part three tackles housing lack in old age, describing the implications and vulnerabilities that arise from renting in retirement. Overall, the brief provides a broad stocktake of research that touches on many different areas of housing-related policy.

Rafal Chomik, Simon Graham, Sophie Yan, Hazel Bateman, John Piggott

This series of three CEPAR research briefs explores the current state, and projected future, of Australia’s retirement income system, marrying policy developments with the latest research. Brief 1 describes the demographic context and structure of the system, how retirement resources compare across benchmarks, countries, and generations. Brief 2 focuses on the public, poverty-alleviation element of Australia’s retirement income, primarily the Age Pension. Brief 3 looks at private, income replacement provision, particularly superannuation.

Rafal Chomik, Simon Graham, Sophie Yan, Hazel Bateman, John Piggott

This series of three CEPAR research briefs explores the current state, and projected future, of Australia’s retirement income system, presenting the latest data and highlighting relevant research. Brief 1 described the demographic context, system structure, and overall trends in retirement resources. The present brief, Brief 2, focuses on the public element of retirement income provision, primarily related to the Age Pension. It discusses policy trends, the design of pension access, benefit level, and means testing, as well as poverty and fiscal outcomes. Brief 3 covers private retirement income provision, particularly the superannuation pillar.

Rafal Chomik, Simon Graham, Sophie Yan, Hazel Bateman, John Piggott

This series of three CEPAR research briefs takes stock of the current state, and projected future, of Australia’s retirement income system, presenting the latest data and highlighting relevant research. Brief 1 described the demographic context, system structure, and overall trends in retirement resources. Brief 2 focused on the public element of retirement income provision, primarily the Age Pension. Here, Brief 3 covers private retirement income provision, focusing on superannuation. This is done by first looking at providers (i.e., industry structure) and members (i.e., financial behaviour), then investigating the accumulation (i.e., balances, contributions, and leakages) and decumulation (e.g., products) stages, as well as touching on issues related to housing, taxation, and public sector superannuation. What becomes apparent is that Australia’s superannuation system is of considerable benefit to households and the wider economy. But it continues to evolve. Its competitive environment is changing and policymakers are looking at ways to improve efficiency and developing measures for a retirement income framework in which individuals will be better able to manage risks in retirement.

Rafal Chomik, Simon Graham, Roderick Gawthorp and Kaarin Anstey

Cognitive decline is feared by many as they approach old age. Yet the severe cognitive decline associated with dementia is not a normal part of ageing. 

This research brief explores the impacts of cognitive ageing and decline on individuals, as well as on the wider Australian economy. The brief emphasises how cognitive impairment is a significant barrier to those over sixty staying in the workforce and managing their finances properly. The brief also discusses the current and proposed future ways to diagnose and prevent cognitive impairment before it becomes severe.

中文 Chinese Version 

Rafal Chomik and Mary MacLennan

Population ageing is likely to result in more people requiring care. Australia's aged care system is the set of public, private and community institutions that offer care interventions to older people suffering chronic illnesses, disability, or physical and cognitive decline. It is also the subject of an evolving reform agenda, so a wide understanding of how it operates is critical.

This brief looks at aged care by describing care recipients, providers, the workforce and access and quality issues.

Rafal Chomik and Mary MacLennan

For a proportion of people, a long life comes with chronic illnesses, disability, or physical or cognitive decline. Population ageing means more people will require care and support. Much of it will be provided informally by family, but increasingly it will take the shape of formal aged care.

This is the first of two research briefs on aged care in Australia. This research brief introduces the policy setting and looks at the demand and funding of formal and informal care.

Rafal Chomik, John Piggott and Bei Lu

New ways of thinking about retirement and employment: Trends, barriers, and policy options.

This brief is a translation of the Mature-age Labour Force Participation Research Brief.

Rafal Chomik

With total health spending in the region worth over a trillion dollars in 2010 and demand for healthcare continuing to grow, Asian governments will have a tremendous challenge meeting and funding this demand.  

Rafal Chomik

Asia's general reliance on defined benefit schemes could potentially lead to unfunded liabilities similar to those experienced in some countries in Europe, once the tipping point is reached.

Some segments of the population lack meaningful pensions, a feature of many developing economies in the region, which means the whole system of retirement income in Asia needs urgent attention.

Rafal Chomik and John Piggott

While Asia's population is expected to increase by one billion people in the next thirty years, the significant demographic story is the change in its age structure.

Rafal Chomik and John Piggott

The fiscal challenges of population ageing can be tackled in a number of ways. These include investing in capital and productivity of the smaller workforce, greater saving for retirement, higher migration, an active population policy, reducing benefits for the old, and/or encouraging and enabling them to work longer.

This briefing focuses on the latter. It presents historical and international precedents for higher mature-age labour force participation rates in Australia, summarising available data as well as looking at the public policy response so far and the potential for further intervention.