The Australian Council of Trade Unions (ACTU) and the Business Council of Australia have warned older Australians to stay in the workforce for as long as possible. If they don’t, the economy may be stripped of as much as $27 billion a decade.

Their joint statement comes a few weeks after another study revealed that baby boomers are finding it difficult to get jobs in the financial services market. It highlights the potentially massive social and economic impact of Australia’s ageing population deciding to put their feet up a bit. It shows that in the past decade there have been about 1.4 million new entrants into the workforce, but between 2020 and 2030 there will be only another 120,000.

ACTU President Sharan Burrow says there is a strong culture of early retirement in Australia and currently six working Australians support each retired person. By 2025 the ratio will have dropped to three workers for every retiree. “Health, welfare and pension systems will be ill-equipped to support a growing class of retired Australians.”

Some industry groups already have plans to insure the ageing population doesn’t get in the way of business. Austbrokers CEO Lach McKeough told Sunrise Exchange News that one of his key objectives is succession plans “to make sure our investment of 50% of a business is secure. At the moment most brokers are in their mid-50s to early 60s, and we need to ensure that the profession can keep growing from generation to generation.”

Business Council CEO Katie Lahey says significant cultural change is needed to break down stereotypes about older workers. “We need to support older Australians who want to stay in the workforce longer, whether it is to maintain their incomes or because they find it fulfilling.”