Intergenerational Equity and the Growing Challenge of Longevity in Australia

Australia is facing a deepening intergenerational equity crisis, with wealth disparities among different age groups projected to hit record highs in the coming years. Central to this debate is the impact of rising life expectancy on the national economy and democratic representation. Recent discourse has intensified following the publication of Lucinda Holdforth’s book, Going On and On: Why Our Longevity Threatens the Future, which explores the structural tensions created by an aging population.

Historically, social contracts were viewed as partnerships spanning generations, as described by Edmund Burke. However, contemporary reality suggests that those currently in power are often reluctant to relinquish their influence. The primary concern is that as longevity increases, the political and numerical weight of older cohorts grows, potentially stagnating democratic turnover and shifting government resources away from future-focused investments like education and climate transition.

Addressing Political and Economic Disparities

The 2023 Intergenerational Report highlights the significant fiscal strain caused by population aging, estimating that demographic shifts will account for approximately 40% of the growth in government spending over the next forty years. As the population lives longer, the national budget is increasingly directed toward healthcare and aged care. This fiscal trajectory threatens to crowd out essential spending on innovation and long-term societal progress, creating a cycle where younger generations face diminished opportunities.

Furthermore, economic factors such as housing affordability, wage stagnation, and gender inequality continue to act as barriers to family formation, leading to a fertility rate that has dipped below 1.5 births per woman. Neoliberalism has been cited as a contributing factor, with the individualization of risk leaving younger citizens to navigate an increasingly precarious economic landscape while simultaneously shouldering the burden of supporting an aging society.

In her book, Lucinda Holdforth suggests provocative policy shifts, such as lowering the voting age to 16 or making voting optional for citizens over 70, to rebalance democratic influence. Yet, critics argue that framing these issues strictly as a conflict between the young and the old oversimplifies the role of wealth and class. Institutional power often dictates behavior, and it is argued that younger cohorts in similar positions might operate under the same dynamics. Ultimately, the challenge lies not merely in the duration of human life, but in the failure to maintain the structural foundations that allow the next generation to thrive. Addressing these issues requires a comprehensive reassessment of how power, resources, and responsibility are managed across the Australian population.

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