Data from the United Nations shows that over the next 25 years, the global population of people aged 65 and older will double to almost 1.3 billion, while the over 80 age group is expected to more than triple over the next 35 years.
By 2018, for the first time in history, the global number of adults aged 65 and over will outnumber children under the age of five.
Emerging markets
In addition, although aging populations are commonly believed to be primarily a developed-markets phenomenon – based on retiring baby boomers in the US and Europe – in reality however, two thirds of the world’s seniors live in emerging markets, a proportion that is forecasted to rise to almost 80% by 2050.
Investment and growth
As a result, the survey predicts a surge in investment and growth in industries such as housing for the elderly, biotechnology and silver tech in both the developed and emerging economies as the elderly seek to remain independent in their final years.
Taimur Hyat, PGIM’s chief strategy officer, said: “For the first time in recorded history, the old will outnumber the young.
“Our report demonstrates the profound impact global aging will have on individuals, businesses, governments, and investors around the world. Long-term institutional investors should holistically evaluate the longevity megatrend and consider capitalising on the opportunities it will bring.”
