Baby boomers’ retirement plans key to Australia’s future

Baby boomers will need to adequately prepare their finances for retirement, not only for themselves, but to ensure Australia's future prosperity, a new report claims.

The AMP.NATSEM Report said the current high levels of youth unemployment across Australia could have a significant impact on the nation's prosperity as baby boomers move into retirement.

With youth unemployment 4.5 times higher than it is for those aged 20 and over — at 27.2 per cent compared to 6.2 per cent, AMP chief customer officer, Paul Sainsbury said young Australians were not gaining the experience required to fill the void left by retiring baby boomers.

"People over 65 are projected to make up nearly a quarter of the population in the future," he said.

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"As older people leave the workforce they will take with them skills and experience, while many young people are struggling to find work. As a consequence, it might mean that younger people are not getting the experience they need to do these jobs in the future."

The report forecast that the proportion of working age people would drop to 60 per cent by 2050, down from 67.4 per cent in 2010.

"The report highlights the challenges of an ageing population," he said.

"With lower birth rates and much longer life expectancy, it is critically important for people to adequately plan for their future so they not only enjoy a comfortable retirement, but also Australia remains prosperous as the workforce composition changes."