By the mid-2030s, 265 million individuals in the global population will be aged 90 and older, a statistic that outnumbers infants; by 2070, the global population aged 65 and older will reach 2.2 billion, passing the population of children under the age of 18; and over the next 30 years, rapidly growing nations like India and China can expect a significant rise in the elderly population, raising a concern and question about the state of the global economy. While the potential for serious economic consequences arise, this environment creates the perfect situation for new business opportunities. In this longevity economy, retirement systems can be reformed, new technologies for the elderly can be introduced, and health-related programs can grow to include new innovations. Thus, as societies continue to undergo demographic aging, it is important to consider the economics of longevity and prepare to act on new business opportunities.
The Longevity Economy
Today, the population of individuals aged 65 or older is projected to grow at a faster rate than the youth, which has prompted a rise in the average age of the population. Looking to the future in 2055, the ratio of people aged 25 to 64 to the people aged 65 or older will rest at 2.2 to 1, a large decline from the 2.8 to 1 ratio in 2025. Contributing to the aging population, fertility rates have experienced an unprecedented decline, reaching an all-time low in the United States in 2024 with less than 1.6 children per woman. In addition to fertility rates, a decline in mortality rates have increased life expectancy, where the average life expectancy at birth is predicted to rise from 78.9 years in 2025 to 82.3 years by 2055.
More concerning, the median life expectancy in developed countries and economies has grown from 78 to 82 years since 2000, a 5% increase. This statistic suggests that the working age population (those aged 15 to 64 years) is, in turn, decreasing. In order to offset this declined consequence, there needs to be a 15% increase in the average working life between 2000 to 2075.
The Longevity Economy, the economic contributions from individuals aged 50 years and over, has contributed to over $45 trillion to the global GDP, equating to 34%, precisely. Their contribution is around three times as great as the revenue of the world’s one hundred highest-earning companies all combined in 2020. In 2024, the demographic of those aged 50 years and over accounted for over 42% of global total spending and over the next decade, it is estimated that they will experience a growth in spending of 5.5%. However, due to the economy of longevity, six principles have been suggested to mitigate the challenges of funding longer lives. These six principles explore ideas like financial resilience, universal access to impartial financial education, prioritizing healthy aging, evolving jobs and skill-building for the workforce, designing systems for wellbeing and connection, and addressing longevity inequalities. The existence of these principles suggests that aging societies not only introduce the need for new policies but also serve as a window for businesses to step in with solutions.
The Implications of Aging Societies
Before discovering the business opportunities, the implications of aging societies must be recognized. First, demographic aging affects the number of individuals in the workforce and also the amount of beneficiaries in programs like Social Security and Medicare. Additionally, aging societies contribute to a drop in the global GDP. OECD Secretary General Mathias Cormann stated that the aging is a leading cause in labor shortages and fiscal pressures and that the working-age population is estimated to decline by 8% in the OECD by 2060 accompanied by a 3% rise in the GDP by annual public spending on health and pensions. Cormann further calls on “ambitious” policy action to improve job opportunities for the older individuals, a feat that can be accomplished by introducing AI tools. Additionally, with the old-age dependency ratio, the ratio of individuals aged 65 years and older to the working-age population, quickly increasing from 19% in 1980, 31% in 2023, and a projected 52% by 2060, GDP per capita growth is threatened to slow down by around 40% in the OECD countries, a worrying implication. While these implications suggest the challenges of aging societies, they also highlight areas with potential, high demand, suggesting new opportunities for businesses to innovate and find solutions to sustain the aging societies.
Opportunities for Businesses
The United Nations General Assembly convened the first ever World Assembly on Ageing in 1982, resulting in a Vienna International Plan of Action on Ageing. Outlined in this plan were specific action items to address prevalent issues like health and nutrition, protection of elderly consumers, housing, family, social welfare, and more. Nine years later, the General Assembly established the United Nations Principles for Older Persons, listing 18 entitlements regarding independence, care, and participation for older individuals. Clearly, policy has begun to lay out important areas regarding aging.
Moreover, in the U.S., the elderly population controls three quarters of the wealth, a testament to their influence and consumer spending. Additionally, in large developing countries, the recent senior population will have accumulated higher savings than their predecessors and per-capita spending will have increased. These statistics combined have led to an estimate of an increase in adult spending from 6% to 6.5% per year for the next decade.
Thus, significant opportunities lie in several sectors regarding aging societies. First, the growing elderly population necessitates assistive living programs and facilities, and for independent senior communities. It is estimated that the residents using these facilities will grow from 1.7 million to 2.1 million by 2030. With rising life expectancy, more individuals will reach the age where extra help and care is necessary, increasing the demand for senior living support. Secondly, as a husband’s wealth is transferred to their longer-living widows, there is a potential for more spending in female-related categories like apparel or wellness. Thus, wealth transfer from spouses can lead to more opportunities for businesses that tailor to older-aged female goods and services. Third, while many older-aged individuals may turn to retirement homes for assistive care, many prefer to age in place in the comfort of their own homes. New technologies, devices and systems are making this idea possible. Many business opportunities lie in innovations like smart home systems, meal delivery, and telemedicine to help older adults live comfortably and independently. Businesses that can develop technology to support aging in place will reap the benefits from this new, growing demand. Next, the integration of AI into drug discovery can help boost the average life expectancy beyond the rate it is currently increasing at. With better and increased access to nutrition and health care, AI ventures can profit significantly as more individuals strive to reach higher ages.
More specific business opportunities include ideas in emergencies, detection technology, robotics, and smart home technology. Innovations like personal emergency response systems and devices to help call for help for emergencies or GPS tracking devices are significant for those with dementia and tend to wander or get lost. Additionally, fall detection technology can help identify when individuals fall and send alerts for help. Lastly, robotics for the elderly is another growing field, where innovations can help out with tasks in their house, provide companionship or even offer assistance in mobility. These innovations are only a few ideas that businesses have developed to take advantage of the aging societies. Although there are many economic consequences associated with the demographic aging, businesses can potentially find benefits by seeking opportunities relevant to the situation.