According to government projections, due to declining birth rates and longer life expectancy, one in five people in Australia will be aged 65 and over by 2030.
I believe that this population shift will be a huge tailwind for a number of local companies. Three shares which I expect to be amongst the biggest winners are listed below. Here's why I think they could be worth a look today:
Japara Healthcare Ltd (ASX: JHC)
This aged care provider aims to meet the expected surge in demand for its services by expanding its capacity greatly over the next few years. While FY 2018 is likely to be reasonably flat, I expect that its earnings growth will reaccelerate in FY 2019 when it reaps the rewards of its investments.
Ramsay Health Care Limited (ASX: RHC)
As a leading private hospital operator I believe Ramsay is one of the best positioned companies to profit from increased demand for healthcare services as a result of ageing populations. The added bonus here is that Ramsay has a global footprint and is likely to benefit from similar tailwinds across the world.
Swift Networks Group Ltd (ASX: SW1)
Although it provides entertainment and telecommunication services to a number of sectors, I see the aged care sector as a key driver of growth over the coming decade. As well as entertaining residents, Swift's platform allows aged care or retirement village providers to communicate with them and distribute bulletins, alerts, menus and other information. It supplies its systems to companies such as Regis Healthcare Ltd (ASX: REG) and National Lifestyle Villages.
