Baby Boomers to Gen Alpha: Generational trends impacting aged care 

What does the future of aged care look like? First, there is the well-known wave of Baby Boomers coming in, bringing a major shift in consumer trends and desires that is already shaping what aged care service providers offer. 

Then there is the next generation of adult children navigating aged care for their parents. They bring a new perspective to decision-making and family expectations. Meanwhile, younger generations – Generation Y (born 1980-1994) and Generation Z (1995-2009) – will cement themselves at the heart of the workforce. 

All of these generational changes will bring their own trends, including social, economic and technological changes. Mark McCrindle, social researcher, demographer and Principal of the advisory firm, McCrindle, believes that modern generational and youth trends are those most likely to impact society the most. 

He said the rapid rise of ChatGPT from a new novelty to an everyday tool for younger workers is a clear indication that trends are developing faster than ever before. 

If something is impacting an industry out there it will impact us [aged care] over here. That’s the nature of it,” he shared at the 2024 ARIIA Conference. 

“In these unprecedented times, the speed, scale and scope of trends are transforming this sector at a faster rate than ever. To face the future we need to understand the trends.”

Demographic changes are greater than ever

Currently, one in six Australians are aged 65 or over. By 2066, it’s projected that just over one in five Australians will be 65 or over. Coupled with a growing population that’s expected to add four million people to its tally over the next decade, it’s clear Australia is getting larger and older. 

“That median age will continue to rise from 38.7 currently to more than 40 in a decade. That midpoint in population is shifting up as we live more. There will be not just increased numbers [of people aged 65+] in the decade ahead, there will be an increased share of the national population pie,” Mr McCrindle added.

“Similarly, for the 85+ population, there’s an almost 50% increase in percentage share of the population. We go from less than 600,000 people today to over 85 to almost one million in a decade. It’s a growing population and an ageing one at that.”

Change from the top

The Baby Boomer generation has held the largest share of the population by generation for almost 60 years. Their impact on Australia has been undeniable. And it will continue for some time: they hold the greatest share of national private wealth, roughly half, despite making up just 19% of the population right now. 

But there is change. Generation Y, also known as Millennials, are now the largest generation. Alongside Generation X (1965-1979), they will be heavily involved in decision-making around aged care services for their parents. 

All of these generations bring different attitudes and expectations to the table and Mr McCrindle said it’s important for providers to understand this from a workforce perspective as well.

“You have the leadership of the sector shifting to not just Generation X but to Generation Y. You have Generation Y and Generation Z moving deeper into that employment spectrum. Even the youngest generation, Generation Alpha [2010-2024], will be about 1/10 of the workforce in 2034. Understanding the baton passing across the generations is important,” he said.

Next gen technology 

As Mr McCrindle expertly claims, technology is used for human flourishing, connection, removing drudgery and creating better thriving. Just like the rapid take-up of ChatGPT, emerging generations will continue to use technology and AI more seamlessly. This is especially true for those born in a world where smartphones fill every pocket. 

But against the expectations, technology is not “taking over”. 

“Even in the future, the most valuable skills will be distinctively human ones. They will use technology in increasing ways but people skills, social skills and the ability to connect with others can’t be outsourced to technology,” Mr McCrindle added.

“But the human use of technology to bring about productivity is where the future lies. As the younger generations come into the workplace, they’ll use technology more intuitively because they’ve been shaped by it.”

Generation Z and Gen Alpha are the most likely to search for information via TikTok rather than Google, or to engage with a website chatbot before picking up the phone and calling for support. As Gen Alpha enter the workforce, they’ll especially be the ones searching for roles where technology is ingrained into daily processes. Aged care cannot be an exception. 

So, why is it important now to look at the workforce of tomorrow? Because of what they’re looking for outside of technology. 

“We have a generation who want to shape their career, curate skills and work in something they’re passionate about. It’s a generation looking for impact, influence, aligned values, connection and social engagement rather than just productivity outcomes, job security and fair day’s pay for a fair day’s work,” Mr McCrindle said. 

He added that their own research shows that young people want meaning in their work, a job that aligns with their core values, a workplace that’s a community of strong social connections, job flexibility and to have a positive impact on the world around them. 

“I believe aged care offers that but we have to better communicate that,” he said.

And with modern workers more likely to be in the not-for-profit sector – one in ten are – there’s a generation (or two) of employees ready to make a meaningful contribution. 

“If we can highlight the impact of shaping the future, connecting with others, making a difference, and the transformation this sector provides, it speaks their language,” Mr McCrindle added.