New Australian Bureau of Statistics (ABS) population data shows NSW's average age has surpassed 40, increasing from 39.95 last year, and rising from 37.72 since official recordings began in 2005.
Females in NSW tipped past 40 in 2019 and now edge towards 41, while males also continue to get older with this year's number rising to a record-high of 39.21.
Retirement Living Council Executive Director, Daniel Gannon, said NSW leapfrogged Victoria to reach the mean age of 40 in third place, trailing Tasmanians (who turned 40 in 2012) and South Australians (2013).
"Some believe that life begins at 40. If that's true, it's just getting started in Australia's biggest capital city," Mr Gannon said.
"What we now know is that people living in New South Wales are getting older and greyer faster than other jurisdictions along the eastern seaboard.
"From a national perspective, Australia's average age is about to eclipse 40 for the first time, marking a significant socio-economic shift in our country's outlook, while Victorians are 39.6, Queenslanders 39.8 and West Australians 39.3 years old."
But, Mr Gannon said, there is a serious policy edge to this demographic outlook.
"There is a silver tsunami rapidly approaching, and yet we don't have gold-plated housing and healthcare systems to respond to these significant demographic changes," he said.
"We know our healthcare systems are already struggling under the weight of increasing demand and there aren't enough homes on the market that offer viable rightsizing options for older people.
"By 2040, the number of over-75s across NSW will skyrocket from more than 670,000 to almost 1.2 million people, bringing with it obvious challenges for age-friendly housing supply, hospital and aged care bed availability.
"Like other states across the country, NSW isn't ready for this significant spike in demand, which is why we need to see action now."
Mr Gannon said NSW's planning system must be streamlined, with policies prioritising retirement communities to encourage older people to "rightsize".
"We know 33 per cent of development applications for retirement villages across NSW take more than 730 days to receive a determination, which is frankly unacceptable," he said.
"There must be consistent policy across all councils and an extension of affordable housing floorspace bonuses to retirement villages.
"As NSW grows old, we need age-friendly retirement communities growing up out of the ground to accommodate for our ageing population."
The RLC's 2023 report, Better Housing for Better Health, shows that compared to people not living in retirement communities, residents are:
- 41 per cent happier;
- 15 per cent more physically active;
- Twice as likely to catch up with family and friends;
- Five times more socially active;
- Experience reduced levels of loneliness and depression, while retirement communities reduce the likelihood of hospitalisation by almost 20 per cent in a resident's first nine months, leading to 14,000 avoided hospitalisations across Australia every year.
