Glenn Stevens: Finance and the ageing population Address by Mr Glenn Stevens, Deputy Governor of the Reserve Bank of Australia, at the Financial Planning Association of Australia Limited, Gold Coast, Australia, 16 November 2005. *  *  *  There has been much talk about the phenomenon of population ageing in recent years. Some of the figures, on their face, are stark.
As a result of declining fertility, and rising longevity, the median age of the world's population is increasing by about three months each year.1 In Australia, whereas today there are about five people of 'working age' for every person over 65 years, by mid century there will be just over two, according to ABS population projections.2 Assuming all other things unchanged, that implies a substantial impact on the rate of growth of per capita national income, and on the proportion of national income required to sustain the non-working part of the population.