Dementia is not just a personal or medical issue. It is a growing crisis affecting individuals, families, and workplaces. As its impact intensifies, businesses will face significant financial and workforce challenges.
Already the leading cause of death for women in Australia and the second leading cause of death overall, dementia is projected to affect over 800,000 Australians by 2058. Yet, despite the rising numbers, government investment in dementia research remains critically low and continues to decline. In 2024, only 4.55% of the National Health and Medical Research Council (NHMRC) funding was allocated to dementia research, compared to 19% for cancer research.
In contrast, Alzheimer’s Research UK has committed to doubling dementia research funding to £160 million in 2024 which equates to approximately $288 million AUD, while Australia’s dementia research funding has dropped to a five-year low of just $38 million AUD —further highlighting the significant disparity in investment between the two countries.
This funding gap places an enormous burden on individuals, businesses, and the broader economy.
The human and financial toll on businesses
Employers are already feeling the strain, with an ageing workforce that includes both individuals at risk of dementia and employees balancing work and caregiving responsibilities.
- Workforce productivity loss – More than 20% of the Australian workforce is over 55. Businesses must confront the reality that some employees will begin to experience cognitive decline while still employed. Symptoms such as memory loss, confusion, and difficulty managing tasks can impact performance, leading to premature exits from the workforce.
- Caregiving costs – Many employees also serve as caregivers for parents or spouses living with dementia. This responsibility often results in reduced work hours, increased absenteeism, and higher stress levels. Australian businesses lose an estimated $2.6 billion annually in productivity as a result.
- The economic burden – The total cost of dementia in Australia was nearly $15 billion in 2016 and is projected to increase to $26 billion by 2036. A staggering 40% of this cost comes from indirect losses, as family members leave the workforce or cut back hours to provide care. A recent study found that 33% of dementia caregivers in Australia had to reduce their working hours, retire early, or leave their jobs entirely. This growing crisis affects employee retention, workforce planning, and business continuity.
The future of business and how to prepare for the dementia surge
Dementia’s impact on business and the economy will only intensify. By 2050, the workforce-to-retiree ratio will shrink from eight to one in 1970 to just three to one, placing enormous pressure on social and economic systems.
Businesses should act now to adapt and mitigate risks.
1. Supporting Employees – Employers should consider flexible work arrangements, cognitive health programs, and support structures for employees showing early signs of dementia.
2. Investing in Research – With government funding lagging, businesses have a role to play in supporting research through philanthropic donations, workplace giving programs, and funding research programs.
3. Creating Dementia-Friendly Workplaces – HR and management teams can be trained to recognise early symptoms, support employees in balancing caregiving responsibilities, and foster an inclusive workplace culture.
The role of research in combating dementia
Research is a critical component in the fight against dementia, influencing everything from early detection to groundbreaking treatments. Investing in research now can lead to earlier diagnosis and better treatments and prevent higher costs in the future, while improving the quality of life for millions. This is why corporate partnerships and funding initiatives are vital to driving progress.
How Alzheimer’s Research Australia is leading the fight
At Alzheimer’s Research Australia, we are committed to making a difference. Our groundbreaking research focuses on early detection, prevention strategies, and the development of innovative treatments designed to slow or prevent the progression of Alzheimer’s disease. Our recent studies have shown promising results in identifying dementia symptoms years before they appear. By advancing early diagnosis and exploring new therapeutic approaches, we aim to improve outcomes and offer hope to those affected by this devastating condition.
Ways businesses can help:
- Corporate Sponsorships and Philanthropy – Contribute to world-class research that is working to detect and prevent dementia before symptoms appear. Join our corporate sponsorship program today to fund groundbreaking research.
- Workplace Giving Programs – Enable employees to support Alzheimer’s research through pre-tax payroll contributions.
- Community Engagement and Awareness Campaigns – Help educate employees and the public on dementia risk reduction and the importance of early intervention.
The time is to act now
The dementia crisis is fast approaching, and without increased funding, better workplace strategies, and corporate involvement, the social and financial consequences will be devastating.
Supporting Alzheimer’s research today means a healthier, more productive workforce tomorrow. At Alzheimer’s Research Australia, we are at the forefront of this fight, but we cannot do it alone. We invite corporate partners to join us in making a lasting impact. Together, we can reduce the impact of this disease and ensure a future where employees, caregivers, and businesses thrive.
For more information on how your business can get involved, please email corporate@alzheimersresearch.org.au
Together, we can change the future.
