By 2025, it is projected that 20% of the world’s population will be aged 60 and above, due to the gains in socioeconomic development driving this demographic transition. This means that a significant percentage of the global population is reaching old age in better health, wealth, and education than previous generations.
With their substantial purchasing power and specific needs, older people in developed and emerging economies are now considered the fastest-growing consumer group worldwide. The market for products and services aimed at people over 50, known as the “silver economy”, is currently valued at US$15 trillion globally and is expected to grow exponentially as the elderly population continues to increase.
It is important to note that the “silver economy” can contribute not only to a country’s economic development but also to its social development, as businesses strive to create solutions to the challenges faced by older people, improving their quality of life in the process.
China currently has the largest number of older people globally, with 216.8 million of its population being 65 or older. This number is projected to increase to 400 million by 2050. Consequently, China’s “silver economy” is expected to triple in value, from US$750 billion in 2020 to US$2.1 trillion by 2030, and could reach a value of US$4.2 trillion, accounting for 10% of China’s GDP by 2035.
The recently published “Opinions on Developing the Silver Economy and Improving the Well-being of Older Person” is China’s first specific policy guideline for the development of the “silver economy”. China’s experience over the next decade can offer insights for emerging economies on how to best meet the needs of an aging population while maximizing the economic development opportunities brought by this demographic shift.
As governments and companies begin to focus on the opportunities created by the “silver economy”, it is important not to stereotype older people as merely consumers of tailored products and services. The United Nations emphasizes the right of older people to be active participants in the development of their societies and the responsibility of governments to create an enabling, stigma-free environment for older people to engage fully in community life.
Older people make significant social and economic contributions to society through paid work, community volunteering, and family care roles. Active participation in social, economic, and volunteering activities, as well as lifelong learning, supports the individual growth and well-being of older people.
Therefore, strategies to develop the “silver economy” should include policies that support the continued employment of older people who wish to keep working. Additionally, incentives for companies to retain older workers and schemes to support start-ups and small businesses for people above the national retirement age should be considered.
While discussions on the “silver economy” often focus on the private sector, the public sector also plays an important role. As people enter old age, they carry with them the inequalities they have experienced throughout their lifetime. It is crucial to ensure that all older people have an opportunity to benefit from the gains of the silver economy and that socioeconomic inequalities within the older population do not increase.
Policies for the development of the “silver economy” must also address gender inequalities, particularly focusing on the needs of older women, who globally enter old age with fewer financial resources than men. They are more likely to have missed years of paid work due to family care responsibilities and have fewer opportunities for career advancement, leading to higher levels of financial insecurity in old age.
The “silver economy” offers various benefits for industries that design products and services for older people, the elderly who are able to live more independent and engaged lives, and policymakers who seek to boost economic growth and social development. However, to achieve these benefits for all older people, it is necessary to address enduring inequalities through designed policies and strategies. — China Daily/ANN
*US$1 = RM4.71
Justine Coulson is the representative of the United Nations Population Fund (UNFPA) in China.
