Federal Treasurer Wayne Swan has acknowledged the challenges of an ageing population but he says the nation’s changing demography will also create opportunities.

Speaking at the official opening of the Australian Institute for Population Ageing Research (AIPAR), Mr Swan said the government needs to draw on the “dividends of an ageing population”.

Over the next 40 years the number of Australians aged 65-84 will more than double while the number of people aged 85 and over will more than quadruple.

This will mean that older people will account for 22 per cent of the population, compared to 13 per cent today and just 8 per cent 40 years ago.

“Our future Australia needs to draw on the full benefit of [the] ageing army of carers, volunteers and ongoing participants in the workforce,” said Mr Swan.

“And this requires policy that's cognisant of the needs and value of older people.”

Mr Swan said population ageing was a fact that the nation had to accept.

“As this ageing occurs, we will face new and different challenges, not just in terms of financing government services, but also how we deliver those services to people,” he said.

“These challenges will be matched by new opportunities. An older cohort that has made a significant contribution to our nation already, and which will want to keep contributing.”

The AIPAR will conduct research into the ageing population and apply it in social and commercial contexts.

It aims to shape policy and raise community awareness about the effects of population ageing.