"Economic Tsunami"

Australia heading for 'economic tsunami'
October 19, 2006 - 10:25AMSource: ABC
An Australian think tank has called for new measures to deal with the economic effects of an ageing population.
Photo: Lateline
The head of an independent Australian think tank has called for policy changes to deal with what he describes as the "economic tsunami" of an ageing population.
He is warning that countries who fail to act, will be left behind.
The chairman of the Committee for Economic Development of Australia (CEDA), Ivan Deveson, is to deliver a speech to an international conference in Madrid.
He says Australia's population is ageing so rapidly that in 40 years there will be 7 million senior citizens compared to 2.5 million now.
He says with less people working, it will mean higher taxes and spending cuts in other areas.
Mr Deveson says studies show many people will outlive their savings.
He is calling for policy changes such as improved child care to boost population growth and more measures to raise retirement incomes.
He says they are needed to guard against what he has labelled the "economic tsunami" of an ageing population.