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Specializing in retirement planning and personalized investment management.

Preparing For An Aging World

The Blue Water Team

Longer lifespans, combined with falling fertility rates in many nations, are leading to aging societies around the world. By 2050, the global percentage of people above the age of 65 should double. 

This trend toward aging is evident even in the traditionally younger emerging markets. As societies age, new challenges and opportunities arise. This article by Global X examines the impact of aging societies on investment opportunities. 

Retirement Challenges and Benefits

Longer lifespans are leading to longer retirements. These extended retirements pose challenges, such as the following:

  • Reduced old-dependency ratio as the number of retired people increases and the number of workers available to support them decreases
  • Rising healthcare demands and costs
  • More age-related diseases
  • Greater insurance costs

At the same time, longer lifespans also present benefits that could lead to economic growth. These include the following: 

  • Older individuals who choose to work longer and contribute to the economy
  • Older individuals who pursue new work opportunities
  • Discretionary spending by those over 60, who currently control 70 percent of disposable income. 

Managing Longer Lifespans

As lifespans increase, the need to deal with age-related diseases and health problems increases as well. This need will lead to increased demands in the areas of pharmaceuticals, medical devices, healthcare providers, assisted care and senior living facilities, and wealth management.  To take advantage of this trend, consider some health care investment ideas.