Demographic Trends You Can't Afford to Ignore: How to Profit from the Next Decade

Welcome to the first episode of "Demographics Decoded," where Simon Kustenmacher and I explore the demographic trends set to transform our world over the next decade.
In this episode, we talk about critical topics such as the impact of an aging population, the Great Wealth Transfer, and the challenges and opportunities of urban growth. We’ll discuss the things you can expect to see change and the things that will stay the same.

You’ll also learn strategies for leveraging these trends to build your future.

Chapters

00:00 Introduction and Importance of Demographic Trends
01:06 Aging Population and its Impacts
06:36 The Retirement of Baby Boomers and Wealth Transfer
09:59 Millennials and Changing Household Needs
19:56 The Hybrid Model of Remote and In-Office Work
22:18 Skills Shortages and the Need for Innovation
25:08 Sustainability and Climate Resilience
27:26 Australia's Economy and Growth Industries
32:45 The Power of Optimism and Seizing Opportunities
35:38 Consistent Factors: Population Growth and Homeownership
37:07 The Importance of Adaptability and Embracing Change

Leveraging Demographic Trends for Success

In our conversation today, we discuss trends that are set to change in the next decade, as well as trends that are likely to stay.

From the aging population and its impact on workforce productivity and aged care services to the significant financial implications of the Great Wealth Transfer, we leave no stone unturned. We hope our conversation provides you with essential knowledge to leverage these demographic shifts for development and wealth-building.

Changes coming over the next decade:
Increasing elderly demographics will significantly impact consumption patterns, workforce productivity, and the demand for aged care services.
With the retirement of baby boomers, there will be a shift away from hierarchical organizational structures, leading to more flexible and adaptable work environments.
Baby boomers are expected to transfer $4 to $6 trillion to the next generation by 2034, reshaping property markets and economic dynamics.
Continued population growth in major cities will lead to challenges in urban planning and housing infrastructure, necessitating innovative solutions for sustainable urban development.
An increase in single-person households, childless couples, and single-parent families will require more housing units and adaptions in the housing market.
The permanence of hybrid work models post-COVID will influence the demand for larger homes with dedicated home office spaces.
There will be a need for smarter, more sustainable housing solutions, especially in poorer areas, to address climate challenges and improve living conditions.
Migration will continue to play a crucial role in countering population decline and supporting economic growth, especially as the native birth rate declines.
Job clustering in major cities will persist, leading to increased urban density and infrastructural demands.
As extreme weather events become more frequent, the cost and availability of insurance will change, with some areas potentially becoming uninsurable.

Trends that will stay the same in the next 10 years:
The economy will continue to be driven by mining, agriculture, tourism, and international education.
Economic ups and downs and property market fluctuations will remain a constant feature.
Media will continue to focus on negative stories, influencing public perception and discourse.
Australia will maintain its high levels of immigration, contributing to a diverse and multicultural population.
There will be ongoing issues with infrastructure not keeping pace with population growth, leading to congestion and backlog.
Australians will continue to value homeownership as a key part of their national ethos.
There will always be pessimists, but an optimistic outlook will always serve people better.

These trends outline the significant demographic and economic shifts expected to shape the future landscape.

[MichaelYardney]

Curious about what the future holds? This is our premier episode of Demographics Decoded, and it's packed with insights you can't afford to miss. Join me and property and leading demographer Simon Kuestenmacher, as we dive deep into the demographic trends that are set to reshape the next decade.
From shifts in population growth to changes in urban development, we’re breaking down how these trends will impact your investments, business strategies, and lifestyle.

🎧 Subscribe now on your favourite podcast app or on YouTube to tune in and start future-proofing your plans today!

[coffeehouse]

I love any interviews done with Simon. I find all this demographic fascinating and have been watching videos on how it will affect the world in general. I am looking toward younger family members and their kids and how it will affect them long after i am gone.
So, trying to plan more on how to help/set them up now (bank of mum & dad) so they are in a better financial situation when the crunch comes in 30-50 years' time.

[JuvelynReyes-mc]

A great first episode and can't wait for future topics!

[iof]

This was great and I’m excited for the future podcasts outlining the future fundamentals. Thanks

[leonie]

Both sides of Government so far have:-
1. Moving retirement age to 70 for aged pensions and expect it may go to 75
2. Reform Agedcare from retirement homes to staying in community until palliative or dementia care comes, increasingly 30% self-funded saving billions in agedcare bed subsidies (next Agedcare Review Report due out this week or end of August 2024)
4. Moving to renting aged care beds away from agedcare bonds and 30% held by agedcare home until resident is deceased or leaves for other care somewhere else
5. Changes to Superannuation on way with the Purpose of Superannuation Report overdue so will probably go into Federal Election 2025. Expect Annuity to replace Aged Pension and or PPOR is included into Asset Test.

Moving very fast. Australia is in better shape to reform, unlike EU etc who are stuck in the 1950s with retiremet age at 60 or 62 and depopulated cities as youth either not reproducung or have left from jobs around the World. In their case they will need stark reforms. Australia it is by contrast a bit buffered by Superannuation and migrants.
One to watch is where Private Health Insurance and access to Hospitals may switch to Elective waitlist for Over 70s. During covid lickdowns remember all the State Premiers kept repeating "We gave bed block in our hodpitals full of people "who should be elsewhere". Here we are, PHIs and States are fighting over premiums and future of Private Hospitals, Dental, Optometrists and who owns that and the fee structuring.
Next 10 years, possibly 5 will be interesting indeed.

[guybeveridge]

Simon hasn't aged at all since his time on Gillagans Island. 😊😊

[c.s]

Hello Michael. Does this new video mean that Simon will not be appearing on your regular video from now on?

[yankos_]

6:20 "High interest rate enviroment"... ?!?!?.... 5%? Really?!!?!?