Now more than ever, it is important to understand how intergenerational equity is changing over time.
The Australian Actuaries Intergenerational Equity Index (AAIEI) contributes to this discussion by tracking and assessing 24 indicators across six broad domains that relate to wealth and wellbeing (Economic & fiscal, Housing, Health & disability, Social, Education and Environment). For three age groups we track the absolute change, as well as the relative change between age bands, over time.
Any index that attempts to boil complex social issues down into a single number is inherently limited. To better understand the AAIEI, this report also unpacks the trends in the underlying domains and indicators that drive the numbers.
The Actuaries Institute believes there is significant opportunity for policy to drive improvements in intergenerational equity and that consistently measuring it will aid long-term policy decision-making. We need not live in a country where most people believe their children will be worse off; such a system is not sustainable.