Social scientists and psychologists have affirmed that greater age diversity will benefit society in a very positive way. But did you know that an aging population will come with distinct economic and financial benefits for the years ahead, too?
According to a 2018 study prepared by Oxford Economics for AARP, seniors can expect key advantages from the new “longevity economy.” Because the spending power of U.S. seniors will increase from $7.1 trillion to over $13.5 trillion annually by 2032, our economy will naturally have to change in order to meet the needs and expectations of an older populace.
The Impact of Senior Spending Power
As the Oxford economists note in the AARP study, the longevity economy is the direct result of longer lifespans in the United States, as well as around the world. Because most people who reach the age of 50 can now expect to live for an additional 30 years, they will contribute more to the workforce throughout their lives – and accrue more household wealth than any generation before them.
To put the massive spending power of the longevity economy into context, economists estimate that the current evaluation of $7.1 trillion is greater than the entire gross domestic product (GDP) of Japan, which is already one of the world’s largest economies. Additionally, the researchers found that in 2012, over 26% of all new entrepreneurs fell between the ages of 45 and 54, with over 23% between the ages of 55 and 64. That means nearly half of all new businesses are now founded by those approaching their fifties or later: a significant change from only a few decades ago.
What Changes Will the Longevity Economy Bring?
Aside from the obvious need for more senior health and long-term care services, the longevity economy will signal a greater diversity of service options for consumers over the age of 60. From real estate to traditional investing, seniors tend to be more focused on wealth-building activities and recreational purchases than their younger counterparts. That’s one of the reasons that economists are also predicting a new golden age for the financial services sector, as over 80% of household wealth is owned by those over 50.
Here are some of the main areas where increased senior spending will boost economic growth:
- Entertainment, both live and streamed
- “Smart” homes and automation
- Private education and online college courses
- Restaurants and dining
- Vacation property rentals
- Biotechnology devices and equipment
- Wearable technology
- Home delivery services
Serving Seniors with Affordable Caregiving Options
At Homewatch CareGiversÒ, we’ve been paving the way for seniors to have greater autonomy and “age in place” at home. Our in-home care services allow a senior’s loved ones to have peace of mind about their care, ensuring that their family member can enjoy the years of their retirement to the fullest.
As the longevity economy continues to invite greater economic growth, our in-home care franchise opportunity will last the test of time, and provide owners with the chance to give back to their local communities. If you’re interested in joining the longevity economy revolution, this may be the right fit for you!
For more information, contact us today and ask about franchise opportunities in your area.