According to the Treasury, the number of Australians aged 65 and over is expected to increase to a massive 6.2 million by 2042, up from an estimated 3.4 million in 2014.
As Australia's ageing population grows, I believe certain companies will be in a perfect position to profit. Three shares in particular that stand out for me are as follows:
Cochlear Limited (ASX: COH)
As one of the world's leading implantable hearing solutions providers, Cochlear looks set to be a big winner from the rise of ageing populations across the world. According to the company almost one out of every three people aged over 65 are affected by hearing loss. This provides the company with a huge target market which I expect will translate into solid top line growth for at least the next decade. However, at 36x trailing earnings I think its shares are a little on the expensive side. Investors might want to wait for a pull-back before grabbing a slice of this high quality company.
Lifestyle Communities Limited (ASX: LIC)
Through its 13 sites in Victoria, Lifestyle Communities provides accommodation for working, semi-retired, and retired people over the age of 50. Thanks to continued strong demand from baby boomers, the company posted a 36% jump in half-year net profit after tax to $12 million. As well as its existing portfolio providing growth in the future, the company has plans to accelerate growth by completing at least one acquisition each year. I believe this could make it a great long-term buy and hold investment.
Japara Healthcare Ltd (ASX: JHC)
Although this aged care operator delivered a disappointingly weaker-than-expected first-half result, I still remain confident that the long-term tailwinds of Australia's ageing populations makes Japara a great buy and hold investment. With demand for aged care expected to grow strongly over the next decade, the company aims to meet this demand with the addition of over 1,100 new greenfield places by FY 2020. This will be an increase of approximately 29% on its current places.
