Silver Economy: The age of opportunity

The silver surges

In recent years, scientists have claimed that ‘60 is the new 40,’ reflecting not just our ageing population but also shifting attitudes about what it means to grow older.

Chart 1: Share of consumer spending, by age group

^{Source: The U.S. Economy’s Secret Weapon: Seniors With Money to Spend, The Wall Street Journal, October 2023.}

This fresh perspective challenges traditional notions of ageing, suggesting that people in their 60s are now embracing life with the vitality and ambition once associated with those two decades younger. Research^[2] into these changing attitudes highlights a more optimistic view of ageing, where people are redefining what it means to be ‘old’ and taking full advantage of longer, healthier lives.

From lifespan to lifestyle

Longevity has increased significantly due to advances in healthcare and hygiene, healthier lifestyles, improved diets, and enhanced medical care. We now benefit from antibiotics, vaccines, clean water, and more nutritious food, all of which contribute to a longer and healthier life. Furthermore, regular exercise and smart lifestyle choices further enhance both the quantity and quality of our lives. While this increase is expected to bring about profound societal change and some challenges, it also creates opportunities:

Chart 2: Determinants of Active Ageing

Known as the wealthiest generation, adults belonging to the so-called Silver Economy have an average net worth ranging from USD 1 million to USD 1.2 million^.[9]

In terms of consumption, this age group is increasingly recognised as a significant economic force due to their substantial net worth and spending power. However, increased life expectancy will lead to shifts in spending patterns and new ways of using time and money. This includes changes in shopping behaviours and the emergence of products and services tailored to the interests and needs of older individuals.

Adapting to the new age of ageing

As longevity becomes a defining feature of modern society, the focus is shifting from merely extending lifespan to enhancing the "quality of longevity"—ensuring that old age is characterised by health, strength, and happiness. Rather than being weighed down by the years, this generation feels as vibrant and full of life as their younger counterparts, with the ability to unlock this potential in numerous ways.

On a societal level, addressing health challenges in old age presents opportunities for improvement and innovation, leading to increased healthcare investment. This rising investment particularly targets oncology and life-threatening illnesses, with significant focus on sub-sectors such as ophthalmology and audiology. The global adaptive optics market size was estimated at USD 608 million and is expected to grow at a CAGR of 31% from 2024 to 2030, driven by expansion in emerging markets, especially in Asia.^[10] Similarly, the global hearing aids market was valued at USD 13 billion in 2023 and is expected to grow from USD 14 billion in 2024 to USD 34billion by 2032, with a compound annual growth rate (CAGR) of 12% during the forecast period.^[11] Equally, health promotion and disease prevention, especially concerning preventable noncommunicable diseases (NCDs), caused in general by unhealthy behaviours and  that emerge later in life such as diabetes, heart diseases and even Alzheimer, have become central to health policy.

Industries to win from the longevity impulse

The pursuit of a longer, healthier life is also inspiring businesses to innovate and adapt, creating new models that address evolving health and wellness needs. Maintaining cognitive and physical health has become a key priority, with companies now emphasising holistic well-being. and offering specialised products and services tailored to the elderly population. The beauty and age-reversal sector is also experiencing growth, driven by new technologies and products aimed at enhancing both appearance and health as we age. This sector is projected to reach USD 93 billion by 2027, with a compound annual growth rate (CAGR) of around 7% over the next five years.^[12] While the healthcare sector remains a prominent focus, other industries, including consumer staples and discretionary goods, are also responding to this demographic shift. Companies like Nestlé recognise the increasing demand from the 50+ age group and are developing nutritional products tailored for older adults, aligning with the increasing interest in obesity management solutions. Cognitive health products are also gaining traction. Medications such as Ozempic and Wegovy, originally developed for type 2 diabetes and obesity by Novo Nordisk, are showing potential in extending lifespans by addressing common age-related conditions such as heart disease, sleep apnea, and Alzheimer's. These drugs have the potential to revolutionise not only healthcare but also retirement planning and long-term care strategies.

The elderly generation also enjoys having more free time and actively seeks to make the most of it through engaging in cultural and leisure activities. This period of their lives allows them to explore new hobbies, attend cultural events, and participate in recreational pursuits that enrich their overall experience and well-being. The elderly generation also wants to look healthy and fresh while they enjoy their free time, and the wish of eternal youth opens opportunities for anti-aging products and services. As the concept of beauty is evolving to include not just external appearance but also internal health and wellness, new opportunities are opened to the beauty and personal care industry. For instance, companies such as L'Oréal are positioning themselves as providers of products which can at the same time help customers to look and feel well inside and outside. With this objective these companies are collaborating with biotech firms to gain from their technology and be able to develop new products which could meet the seniors' desire to age healthily and maintain vitality, all at the same time.

Capitalising on longevity

As we navigate this new era of longevity, the Silver Economy presents an opportunity for investors to capitalise on the growing demand for innovations aimed at healthy ageing. Industries are actively developing new solutions to support wellness, prevention, and enriched lifestyles for an ageing population. This innovation opens doors for investment in sectors that cater to both the desire for improved quality of life and the enjoyment of increased free time. From cutting-edge healthcare technologies and personalised wellness products to travel and leisure services tailored for older adults, the Silver Economy offers numerous avenues for growth. By focusing on enhancing the quality of life, investors can transform the challenges of an ageing society into thriving opportunities. The future is clear: as we invest in longevity, we are also investing in a vibrant, prosperous age of opportunity where the benefits of living longer are fully realised.

^{[1] “Baby boomer” refers to a member of the generation that was born between the end of World War II and the mid-1960s.
[2] BMC Primary Care: "The shift from old age to very old age: an analysis of the perception of aging among older people", January 2022.
[3] Statista, September 2024.
[4] Statista, September 2024.
[5] World bank, September 2024.
[6] United Nations: Leaving no one behind in an ageing world: World social report 2023, p.23.
[7] Statista, September 2024.
[8] Statista, September 2024.
[9] Silver economy positioning, March 2024.
[10] Adaptive Optics Market Size, Share & Trends Analysis Report By Component (Deformable Mirrors, Wavefront Sensors, Control Systems), By End-use, By Region, And Segment Forecasts, 2024 – 2030, 16.08.24.
[11] Fortune Business Insights: Hearing Aids Market Size, Share & Industry Analysis, July 2024.
[12] Statista, August 2024.}