Rising health costs represent a greater challenge to Australia than the ageing population, according to the former head of Prime Minister and Cabinet, Dr Michael Keating.
Speaking on a panel at the Financial Services Council national conference, Keating said he believed the implications of demographics and the ageing population were being exaggerated and that the greater challenge would be funding the health system.
Further, Keating said he believed that Australia would not be particularly stretched to maintain the age pension over the next 40 years and there were much bigger challenges likely to confront governments the age pension.
He told the conference the shape of the superannuation system and other factors meant the Australian government was carrying very little of the risk with respect to future retirement incomes.
Keating said a greater risk was being carried by individuals, particularly in circumstances where investment returns were unlikely to be as robust as they had over previous decades.
