The Silver Economy: A New and Powerful Consumer Class

By 2050 those aged over 65 will outnumber children under five, reports FT.

A recent Bank of America Merrill Lynch report cites UN estimates that the number of people worldwide aged 60 years and older will double to more than 2bn by mid-century.

Sarah Harper, director of the Oxford Institute of Population Ageing, says “the vast majority of people in the world will make it to age 70”, once considered extraordinary old age. The shape of the classic “population pyramid” showing large numbers of young people at the bottom with a few elderly on top has changed.

Jody Holtzman, of the American Association of Retired Persons, whose members are aged 50 plus, says that for many people longer lives will mean an extended middle age rather than a descent into frailty.

BofAMerrill Lynch, which recently produced a report on what it calls The Silver Dollar, cites estimates that the over-50s account for almost 60 per cent of total US consumer spending and 50 per cent of that in the UK.

Sanjeev Sanyal, global strategist at Deutsche Bank, says the market for high-priced consumer goods – cars, watches, sports equipment – is dominated by older adults.

(Graph via FT)