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Wealth Management: Investment Views – The Silver Economy: Summary

15/11/2019

William Therlin, William Haggard and Amaya Gutiérrez, Wealth Management

Summary

Demographics are shifting. By 2020 the global population aged 60-plus will be 1 billion. Fast forward to 2050 and this cohort is expected to reach 2.1 billion1 - a group whose spending power and consumption has come to be named by public and private sectors, the “Silver Economy”. Since 1950, life expectancy at birth has risen by over 10 years in North America and Europe, 25 years in Africa and by 30 years in Asia. With lower birth rates, medical advances and a significant increase in life expectancy, the Silver Economy is set to grow.

So what does that mean for investors and how can one capture returns in a market set for profound changes? In this Investment Views, we seek to answer these questions and find out where the opportunities lie in the Silver Economy.

1 World Population Prospects: The 2019 Revision, Key Findings and Advance Tables, United Nations Department of Economic and Social Affairs, 2019

Silver regions

By 2050 one in five people are projected to be aged 60-plus, and regionally, this trend is set to be most pronounced in Europe, North America and Asia (Figure 1). This 60-plus segment, or Baby boomers as they are often called2, is the fastest-growing consumer group in the world. Armed with an increasingly higher spending power and a rising share of overall income, they will influence many corporations given their capacity to consume - which is set to reach USD 15 trillion by 20203.

2 Usually defined as those born between 1945 and the late 1960s with high spending power
3 Boomers as Consumers, Global Survey Report October 2012, Euromonitor

Silver Economy NEW - Figure 1

Source: The 2019 Revision of World Population Prospects

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Click here to continue: Investment Views - The Silver Economy

 

In this Investment Views:

Download the full The Silver Economy in PDF format (623 KB)

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