A recent roundtable forum found that Australia’s aged care sector will need more funding to cope with the nation’s ageing population, and may require support from the superannuation industry to meet demand.
According to the Aged Care Financing Authority (ACFI), Australia’s residential care sector will require $35 billion in funding to cater for the demands of Australia’s ageing population, with the first of the baby boomers set to turn 80 in 2026.
The Melbourne roundtable saw representatives from Australia’s superannuation and aged care industries come together to discuss how the $2 trillion superannuation sector could support the development of aged care services and vital infrastructure, and how funds can better support members access aged care.
Council on the Ageing (COTA) CEO, Ian Yates, said:
“The aged care sector will be needing trusted institutions willing to invest in much-needed infrastructure. It would be terrific to see greater involvement amongst the industry super funds. Funds also have an important role to play in supporting members get access to the best aged care through both advice and new product development.”
The roundtable was attended by representatives from Australian Super, Cbus, HESTA, IFM Investors, ME Bank, ISPT, Catholic Health Australia, COTA, the ACTU and Industry Super Australia, who also discussed services that would help consumers plan for their aged care and better understand and navigate the complex system.
One example of the super industry contributing to the aged care sector is the July 2017 case of HESTA investing $19 million in an Australian-first dementia village designed to recreate real life experiences for residents.
According to AFCI, the aged care sector provides services to 1.3 million Australians, generates annual revenues of around $21.5 billion and contributes almost 1% of GDP to the economy.