Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 193

Governments fund more research than we realise

[Editor’s Note: For background, CEPAR is the ARC Centre of Excellence in Population and Ageing Research. ARC stands for Australian Research Council, an Australian Government entity whose mission is to deliver policy and programmes that advance Australian research and innovation globally and benefit the community].

Understanding the changes in our population and its demographics are vital inputs when planning our retirement systems. On 8 September 2016, ARC awarded CEPAR $27.25 million in funding to finance a second research term of seven years. This is a significant achievement and the many people involved, notably Professor John Piggott (Centre Director) and Marc de Cure (Chair of CEPAR’s Advisory Board), deserve congratulations.

To put this win into context, consider the other eight winners of ARC funding:

  • ARC Centre of Excellence for All Sky Astrophysics in 3 Dimensions
  • ARC Centre of Excellence of Australian Biodiversity and Heritage
  • ARC Centre of Excellence for Climate Extremes
  • ARC Centre of Excellence for Engineered Quantum Systems
  • ARC Centre of Excellence for Gravitational Wave Discovery
  • ARC Centre of Excellence in Exciton Science
  • ARC Centre of Excellence in Future Low Energy Electronics Technologies
  • ARC Centre of Excellence for Quantum Computation and Communication Technology

Reactions may include awe at the complexity of some of the topics and the breadth of research areas supported by government funding. A large number of top quality applications were unsuccessful, and I agree wholeheartedly with Piggott’s comment that “population ageing is an issue of paramount importance to all; this is truly the ageing century”.

CEPAR is a good example of collaboration:

  • From a research perspective, while based at UNSW Australia, it applies a best practice model and has research members from the Australian National University, the University of Sydney, the University of Melbourne, the University of Western Australia, the University of Manchester, the University of Pennsylvania and the Wharton School.
  • CEPAR has a collaborative funding model, receiving additional funding from industry and government partners including the major Commonwealth policy departments, large corporates, and the NSW Government. CEPAR also has strong support and engagement with the World Bank, OECD and COTA.

CEPAR’s multidisciplinary approach draws on expertise in actuarial studies, demography, economics, epidemiology, organisational behaviour, psychology and sociology. Piggott explains, “CEPAR’s research programmes are assembled into four interconnected streams, that cover demographic modelling; decision making, expectations and cognitive ageing; work design and successful ageing in the workforce; and sustainable wellbeing in later life. The latter including not only physical but financial wellbeing as well.”

Sometimes it may be difficult to identify the output of a research body. Some of CEPAR’s statistics shed light on the breadth and quantity of output (for the period 2011 to 2015):

Why does this matter for industry and individuals?

People will ask questions such as “How does this all flow down to the real world?” or “How does society benefit from academic research?” The table above demonstrates how research centres are increasingly focusing on more than publication in academic journals (though that will always be important). Modern day research in practice recognises engagement and collaboration are drivers of success.

If research groups engage well, then their research is better positioned and reaches a larger audience. By engaging and collaborating, academic researchers are better informed of research needs and barriers to implementation.

The first draft of this article received strong editorial feedback. It was going to finish with the following paragraph.

Perhaps it is important for industry to ask themselves “Are we sufficiently engaging with the research community?” If you haven’t heard of CEPAR or aren’t aware of the work CEPAR is doing, then it is worth learning more about, especially if you are affected by population ageing (in my case, for instance, superannuation).

However, the alternative paragraph is as thought-provoking.

How many people in industry have heard of CEPAR? Are the metrics tabled above ones which best measure effective engagement? How highly does CEPAR value the benefits of engagement with industry and is it sufficiently core to their culture and philosophy? And how can we more clearly see how the benefits work for the ageing public who pay for their research?

Personally, I feel there will always be the potential for greater levels of collaboration between industry and researchers such as CEPAR. All parties are stepping in the right direction, and there is more to come. In CEPAR’s case, at least seven years and hopefully a lot more.

 

David Bell is Chief Investment Officer at Mine Wealth + Wellbeing. He is working towards a PhD at University of New South Wales.

 

  •   9 March 2017
  • 2
  •      
  •   
2 Comments
Fundie
March 09, 2017

Interesting story but here's an idea – cut the spending on all that medical research that is adding to life spans, then we don’t need to spend so much money on research into fixing all the problems created by longer lifespans!

David Williams
March 09, 2017

CEPAR does an excellent job of identifying longevity issues, researching them and achieving well-founded conclusions. Its 'faculty' is world class. But like so many countries, our programs for educating people to deal with their own longevity are significantly underfunded and limited.

We have funded improving financial literacy, but as a community we are woefully longevity ignorant. Yet our financial requirements are dependent on our expected time frame - the independent variable on which professional financial planning depends. Understanding our time frame,its potential consequences and the trade-offs we must make are the best foundation for appropriate financial decisions.

We need to do much more to plug CEPAR's excellent work into learning and behavioural changes. We must develop a more aware, independent and functional older community as well as better informing their successors.

The root of our longevity challenge is that our social evolution is simply not keeping pace with the growth in our scientific knowledge - so our solutions are evolving more slowly than our longevity increases. We need to bridge the gap with better education.

 

Leave a Comment:

RELATED ARTICLES

How long will you live?

banner

Most viewed in recent weeks

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Latest Updates

Investment strategies

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

Retirement

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

The ASX is full of broken blue chips

Investing in the ASX 20 or 200 requires vigilance. Blue chips aren’t immune to failure, and the old belief that you can simply hold them forever is outdated. 

Shares

Buying Guzman y Gomez, and not just for the burritos

Adding high-quality compounders at attractive valuations is difficult in an efficient market. However, during the volatile FY25 reporting season, an opportunity arose to increase a position in Mexican fast-food chain GYG.

Investment strategies

Factor investing and how to use ETFs to your advantage

Factor-based ETFs are bridging the gap between active and passive investing, giving investors low-cost access to proven drivers of long-term returns such as quality, value, momentum and dividend yield. 

Strategy

Engineers vs lawyers: the US-China divide that will shape this century

In Breakneck, Dan Wang contrasts China’s “engineering state” with America’s “lawyerly society,” showing how these mindsets drive innovation, dysfunction, and reshape global power amid rising rivalry. 

Retirement

18 rules for ageing well

The rules to age successfully include, 'the unexamined life lasts longer', 'change no more than one-eighth of your life at a time', 'nobody is thinking about you', and 'pursue virtue but don’t sweat it'.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.