Aging Will Have a Huge Impact on Societies

 

Since 1900, the percentage of Americans age 65 and older nearly quadrupled (from 4.1% in 1900 to 16% in 2019), and the number increased more than 17 times (from 3.1 million to 54.1 million). At the same time, the older population itself became increasingly older. The population is projected to reach 80.8 million by 2040 and 94.7 million by 2060. All but a tiny percentage of them will live in non-institutional settings. Older Americans are one of the fastest-growing demographics in the country. Is this a huge problem or a great opportunity? The answer will depend upon how societies choose to respond to this changing reality.

The increasing burden of providing healthcare to older people, who consume on average far more of it that younger people, will strain personal and government finances. National health spending will climb to 19.4% of gross domestic product (GDP) in 2027, reaching $6 trillion, according to new estimates from the Center for Medicare and Medicaid Services. That is up from about $4 trillion in 2020. Most older Americans will receive Social Security payments that rise with inflation, driving up the cost of providing benefits at the same time that fewer young people will be working and paying into the system. Housing will continue to strain personal and government budgets.

But it is not all bad news. Baby boomers in the US are projected to have 70% of all disposable income over the next five years and to control over $15 trillion of wealth. Reimagining housing, social safety networks, travel and producing products targeted at an older population represents a vast economic opportunity. Yet today less than 10 cents of every marketing dollar is targeted at seniors (and nearly all of that is selling pharmaceuticals and insurance). Rethinking stereotypical beliefs about ageing and changing the discourse around older adults could positively transform society into one where everyone can age with purpose and contribute well into their later years.

Click here to read more about the profound effect of an aging population.