Understanding the Longevity Economy starts with understanding the over-50 population itself, as a distinct group whose needs are rapidly evolving and overall size is quickly increasing. According to AARP, in 2000, Americans over 50 comprised 42% of the over-25 population whereas in 2013, that proportion reached 51%. These stats are only expected to continue to increase up to 54% by 2032.
The Longevity Economy is upending conventional wisdom about how aging affects the overall US economy, and the country. Rather than lengthening what used to be considered “old age”, the 30 years added to lifespans in the 20th century have resulted in a longer middle age—extending the period in life when working is a viable option, and representing a major resource and massive shift in the economy.
In fact, whether starting businesses, or launching second careers, coined as “encore careers”, today’s over-50 population’s economic clout is enormous for they control almost 80% of US aggregate net worth and have on average about three times the household wealth compared to those in the 25 – 50 year old age range. Those financial resources combined with what is often a wealth of knowledge from decades of professional life results in a massive value add for companies employing folks in the aging population, or in the economic ventures that the aging population is pursuing as entrepreneurs, which is also quite common. A 2011 study by MetLife Foundation/Civic Ventures found that 9 million people between 44 and 70 were actively employed in an encore career, while 31 million people were interested in pursuing the same.
Rather than being a burden to society, these older people will continue to fuel economic activity far longer than past generations had, and those born after them will continue the trend.
Here at Clearday™, we’re focused on building cognitive care tools and services that not only help individuals stay at home until further care is needed, but also help them thrive throughout every stage of 50+ years. See how we help here.
By Clearday Research Team
This blog and related materials prepared by Clearday, Inc. may use publicly available information including market research, studies or reports by unaffiliated third parties that include market demographics and other relevant market or research information. Such information or a link to such information is available upon request. We do not warrant any such information and do not have information that causes us to believe that any such market research, studies or reports are not correct in all material respects.