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Australia is undergoing a demographic transformation, and its effects are being felt across the economy. With nearly one in six Australians now aged 65 and over, the nation’s consumption patterns are shifting in real time. Retirees are increasingly driving demand in sectors like healthcare, aged care, leisure, and social services – creating new opportunities and pressure points for businesses and policymakers alike.
As more seniors prioritise mental engagement and social connection, classic games like mahjong are now enjoying a resurgence, both in community settings and online platforms such as mahjong365.com, where players can access the game for cognitive training and social interaction. For businesses attuned to this shift, such demand presents a growing market – one where even centuries-old games become modern tools for connection and cognitive vitality.
Authorities adapted as well. This demographic swell has prompted major shifts in government planning. According to the Australian Institute of Health and Welfare report on health expenditure, national spending on health goods and services in Australia reached $252.5 billion in the 2022–23 financial year, averaging around $9,597 per person. This figure represented 9.9% of the country’s GDP, underscoring the increasing pressure on the healthcare system as the aging population drives higher demand for medical support and long-term care.
Leisure spending is evolving too. Unlike previous generations, today’s retirees are healthier, more mobile, and more tech-savvy. Many are spending more on travel, wellness, and community-based activities that support both physical and mental well-being. Community centres across suburban Australia report a rise in participation in group games, including mahjong, tai chi, and bridge, not just for entertainment but also for their documented cognitive benefits.
Namely, a study on the impacts of cognitive leisure activities published in BMC Geriatrics found that engaging in hobbies that boost mental activity, such as playing mahjong or cards, is associated with a reduced risk of cognitive impairment and all-cause mortality among older adults. Simply put, the conclusions imply that the more you engage your brain, the longer you live.
In line with these trends, industries that traditionally targeted younger consumers are pivoting to meet the needs of an older, wealthier demographic. Retailers are redesigning store layouts for accessibility, while travel companies are offering more age-inclusive packages with medical support options.
Even digital technology firms are developing more intuitive apps aimed at older users, including telehealth services and user-friendly financial platforms. In response, banks are simplifying digital interfaces, while healthcare providers are expanding online appointment systems and virtual monitoring tools.
One challenge, however, is inequality within the aging population. While many retirees enjoy financial security from property investments and superannuation, others – especially women and renters – face economic precarity. Policy responses such as rental assistance, community grants, and targeted Medicare expansions are currently under review at both the federal and state levels. As this generational shift continues, balancing market opportunity with inclusive policy will be crucial.
Australia’s economy is adapting – but so too is its social fabric. With more seniors actively shaping demand, the traditional definitions of retirement and aging are being rewritten. The future of consumption in Australia will be defined not just by longevity, but by how meaningfully older Australians are included in the national conversation.