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Want to peer into a crystal ball and see what Aussie life looks like in 2066? Well, Australia’s unofficial fortune-teller (a.k.a. the Treasury) just dropped its latest Intergenerational Report revealing how we’ll be living 40 years from now. Published every three years, this four-decade snapshot details the massive shifts heading for our health, wealth and economy by the 2060s. Hint: We’re older, richer and downsizing the great Australian dream.
Demographics
The report projects Australia’s population will hit 39.3 million people by 2066, growing at roughly 0.9 per cent annually – 1.8 million fewer people than the 2023 forecast predicted. Still, that’s millions of potential new friends to meet at the local pub!
For the first time in Australian history, deaths are on track to outnumber births. Thanks to better healthcare, life expectancy will increase to 89.5 to 90 years for women (up from 86) and 86 to 86.1 years for men (up from 82), with the number of Aussies aged over 85 tripling. At the same time, a decline in birthrates – from 1.44 to 1.34 babies per woman – will push the median age to 45.
Wealth
Real incomes (adjusted for inflation) are projected to jump 55 per cent by 2066, with real GDP per person growing at 1.2 per cent annually – down slightly from the 1.5 per cent pace of the past 40 years. But there’s a catch for Gen Z and Alpha: while national wealth continues to increase, younger generations are set to see "smaller gains" than their parents did.
Median super balances for retirees aged 65 to 69 are set to more than double from $204,000 in 2024 to $450,000 (before inflation). As a result, future retirees will rely less on government welfare, decreasing spending on aged and service pensions.
Economy and climate
By 2066, the Australian economy is set to be 2.25 times larger, growing at an average annual rate of two per cent – even as an aging population and smaller workforce drag down overall momentum.
The Treasury notes artificial intelligence as a "defining influence" on future productivity, with Australia well-positioned to capitalise on it. However, powering those AI data centres comes at a cost, demanding nearly ten per cent of the National Electricity Market by 2050.
That massive energy demand sits alongside a major overhaul of our industrial landscape. Coal production is projected to plummet 71 per cent by 2050, while the direct toll of climate change will drag crop yields down by 3.6 per cent and triple national spending on natural disaster response.