Baby Boomers and the Growing Demand for Residential Aged Care Beds in Australia

Australia is facing a significant and growing shortage of suitable residential aged care beds, and the demand is set to rise sharply over the next two decades. This challenge is being driven by the ageing population, particularly the Baby Boomer generation, which is now entering the stage of life where aged care support becomes essential.

Why Demand Is Increasing

The oldest Baby Boomers are now 79 years old. With the average age of entry into residential aged care currently at 83 for men and 84 for women, many from this generation are approaching the transition into aged care services. As a result, demand for residential aged care is projected to increase substantially in the near to medium term.

Forecast Demand for Aged Care Beds

According to the Australian Government Department of Health, Disability and Ageing – Financial Report on the Australian Aged Care Sector 2023-24, the demand for aged care beds is expected to rise by an average of 9,300 beds per year.

In 2024, there are around 223,691 residential aged care beds.
By 2043, demand is projected to reach 400,000 beds.

This steady rise highlights the urgent need for continued investment in aged care facilities, workforce capacity, and support services to meet the needs of Australia’s ageing population.

What This Means for Families and Providers

For families, these figures are a reminder of the importance of planning ahead when it comes to aged care. Waiting until a crisis point often makes the transition more stressful. By exploring options early, families can ensure their loved ones receive the right level of care at the right time.

For aged care providers, the growing demand represents both a challenge and an opportunity. Facilities will need to expand capacity, improve infrastructure, and attract skilled staff to meet the increasing care needs of Baby Boomers as they age.

The Baby Boomer generation is reshaping Australia’s aged care landscape. With forecast demand for an additional 9,300 beds each year, the sector must prepare for unprecedented growth. For families, early planning is essential. For providers, this is the time to innovate, expand, and adapt to meet the needs of an ageing nation.

Frequently Asked Questions About Aged Care in Australia

When should I start looking for residential aged care?

It’s recommended to begin researching aged care options several years before you think you’ll need them. The average age of entry is early-to-mid 80s, but planning ahead ensures you’re prepared and able to choose the best facility rather than rushing during a crisis.

How much does residential aged care cost in Australia?

The cost depends on factors such as the type of accommodation, location, and level of care required. Fees can include a basic daily fee, a means-tested care fee, and sometimes an accommodation payment (RAD/DAP). Government subsidies may help reduce costs depending on your financial situation.

What’s the difference between home care and residential aged care?

Home Care allows older Australians to receive support while living in their own home, such as help with cleaning, cooking, personal care, or nursing services.
Residential Aged Care provides 24/7 support and accommodation in a specialised aged care home for those with higher care needs.

How do I find residential aged care near me?

You can use online directories like Aged Care Online to search for aged care homes across Australia. This makes it easy to compare services, locations, and facilities to find the right option for your family.