A lot has been written about baby boomers, and many (including this author) are getting a little tired of them. Not of the generation of course, but of the endless stream of statistics, often with a slightly negative angle, about this (in)famous generation. For the record, the youngest cohort of boomers are set to reach 50 this year, with the oldest turning 68. This means Australia’s largest and wealthiest generation is now entering retirement, or at least has to seriously begin planning for it. Cue more stories!
But what about the other end of the spectrum, the newest generation known as Gen Alpha? Many are concerned about how this generation will survive in a new world of ‘expensive’ properties and international uncertainty.
Recent forecasts from demographer Mark McCrindle take a look at the year 2034 – when Gen Alpha will be in their 20s. What will their world look like?
In terms of population, Australia will have reached 32 million (up from 23 million currently), while the population of Melbourne will be larger than the whole of Victoria today. The global population will be 8.8 billion (twice what it was when the parents of Generation Alpha were born in the early 1980s) and India will have surpassed China as the world’s most populous nation.
Turning closer to home, there will be more Australians aged over 60 than under 20 for the first time in our history, while Australia’s median age will be 40 (it was 29 when the parents of Gen Alpha were born). Finally, and perhaps most pertinently for property investment, the most common household type will be the couple, no kids households, eclipsing for the first time ever the nuclear family of today.
At Blue Wealth we say the best way to make investment decisions is not to think about the present, but instead what the world will look like in the future. These forecasts show once more that there will be significant population increases in concert with decreased household sizes (read simply – lots more households!). Will your clients’ investment decisions allow them to take advantage of this new world?
Invite them to a Blue Wealth seminar – they will thank you for it.