Nowhere is an ageing population more of a problem for the economy than in Tasmania, economist Saul Eslake believes.
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The Ageing and Work in Regional Australia report, to be released by Regional Australia Institute on Tuesday, found if the nation did not engage mature-aged workers, the result would be lower growth, lower incomes and a higher welfare and services bill.
In Tasmania, data for the report was compiled from the Break O’Day and Glamorgan Spring Bay areas.
At Break O’Day, 19.9 per cent of the population was receiving a pension while 37 per cent of people aged between 55 and 64 years old in the area were working.
Institute data found by employing older people, areas could lift participation rates and boost spending – taking advantage of the “silver economy”.
“Anything that can be done to prevent people from dropping out of the workforce at 55 – would be a good thing,” he said.
Mr Eslake said it was vital older people were not “blamed” for leaving the workforce.
“Most people these days who retire before 65, don’t have a choice about it [due to job losses],” he said.
“If I’d been a blue-collar worker the physical capability to do some of the things at 60 – I did at 25 – would be reduced.”
For the economy, Mr Eslake said keeping people employed would have significant flow-on effects.
At $45 billion, the aged pension is the largest item in the federal budget and it is forecast to blow out to $51 billion by 2020.
Council of the Ageing Tasmania chief executive Sue Leitch maintains stopping discrimination against older people is key to keeping them in the workplace and the economy healthy.
As head of the peak advocacy group for older Australians, Ms Leitch said it was a battle to spruik the benefits to companies of keeping people in the workforce.
“There needs to be more done, to be frank,” she declared.
“Older people in the workforce are still experiencing a degree of issues that are ageist.”
Ms Leitch said Australia had a “social culture” that expected people to retire once they reached a certain age.
She said for many older workers, the commitment from employers waned as they got older.
“Older people should have just as much access to training and retraining opportunities as the rest of the workforce,” she said.
“There are a number of older people that do want to continue working and are not made comfortable in their workplace.
“Culturally, we still need to do a lot to creating hospitable workplace where our older workers are valued.”