“The latest population projections by the United Nations foresee the senior cohort to be the group with the most substantial as well as sustained growth: the senior (65+) population is seen growing from just shy of 800m today to roughly 2.5bn by 2100--which by then will account for a quarter of the global population. This development is driven by improvements in living conditions and medical advances that historically increased life expectancy and should continue to add an additional decade to life expectancies of newborns over the same period.”
Beyond this observation, made by Crédit Suisse in a blog post, is a mention of two dynamics: the price of medicine and healthcare, and the immense need for solutions to finance retirement. At a time when public finances are struggling to anticipate the future, young people are going to have to start saving for their golden years early.
Investment in the so-called “silver economy,” currently estimated at $17trn, is encouraging innovation in biotechnologies, health technologies, financial technologies and care provision.
“The 60-plus segment, or baby boomers as they are often called, 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--their total net worth equates to around $70trn.” This comment is from Rothschild, with data taken from Mc Fona’s “Baby Boomers 2022 Consumer Insight.”
What few analysts take into account, however, is that these baby boomers will increasingly connected. Today’s over-65s have less and less to do with the senior generation of the 2010s. As such, a large proportion of the products and solutions they use--whether for health, home care, shopping or financial management--will come from their relationship with the internet and their connected devices.
A company to watch
Artificial intelligence, robotics and the Internet of Things are going to revolutionise the sector, which might explain why it is still very fragmented today, with these technologies still maturing and in flux.
The offer of American company GetSetUp might seem totally superfluous at first: live training sessions for senior citizens. But it could be interesting, the chance for seniors to learn the guitar or a few gymnastic moves. Although it’s not a revolutionary platform, it has a community dimension that connects people who are increasingly isolated.
This article was originally published in Paperjam. It has been translated and edited for Delano.