5 ways to profit from Australia’s ageing population

There’s been a bit of back-and-forth in the media recently about the concentration of the nation’s wealth (especially property) in the hands of older generations – namely, the baby boomers. I haven’t got any stake in that debate, but I think one key way investors could benefit is to own shares in companies that sell stuff to the people with the greater material wealth.

If we’re talking about baby boomers, there are 3 key demands that this group of customers want met – health, wealth, and happiness.


Consider hearing aid manufacturer Cochlear Limited (ASX: COH). Not only does the company make money on the initial sale, it earns repeat business from maintenance and upgrades to those products. Plus, hearing difficulties are reportedly widely under-diagnosed and treated.

Healthscope Ltd (ASX: HSO) is a private hospital operator expected to benefit from the ageing population over time. With more hospitals currently under construction and tailwinds from an ageing and overweight citizenry (think more illness and more procedures), Healthscope could be in a good spot.

Japara Healthcare Ltd’s (ASX: JHC) aged care homes provide homes and care for individuals with both simple and complex healthcare needs, including dementia. Another one to benefit both from the ageing population and growing demand for aged care facilities.


Class Ltd (ASX: CL1) provides software for self-managed super funds, and is growing its market share. The size of the market (the number of people using SMSFs) is also increasing.

Challenger Ltd (ASX: CGF) provides annuities and life insurance to retirees, and its update today suggest business is already booming.


I haven’t come across any stocks that specifically target retiree/ baby boomer happiness, although judging by the 80 year olds that like to jump out of aeroplanes for their birthday, Skydive the Beach Group Ltd (ASX: SKB) could be a winner.

On a more serious note, some businesses like Lifestyle Communities Limited (ASX: LIC) and Gateway Lifestyle Group (ASX: GTY), which provide retirement accommodation, neatly straddle the wealth/happiness category, given how important affordable and comfortable homes are.

There's also The Motley Fool's latest stock picks for 2017, which offer strong opportunities at today's prices, in my opinion:

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. The Motley Fool Australia owns shares of Challenger Limited and Class Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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