A new report from the United Nations highlights the fact there is no slowing down the aging process and the growing cohort of people over 65 years old across the globe. This is one of the key drivers behind our Aging of the Population investing theme, which focuses on the growing array of products and services that will cater to this demographic group. The UN report also calls out the upside down age pyramid that will result given low fertility rates, which will also spur the demand for services as well as raise questions over how they will be paid for in the coming years.
The bottom line is this UN report clearly speaks to both the global tailwinds and headwinds associated with our Aging of the Population investing theme.At the Osaka G20 summit in Japan, world leaders are grappling with one of the most challenging issues humanity faces today: We’re not getting any younger.
Last year, for the first time in human history, the number of people on Earth aged 65 or older outnumbered children under five, according to a recent United Nations report. People over 65 are now the world’s fastest-growing age group. Three decades from now, one-quarter of the population in Europe, the United States and Canada will be over 65.
“Historically low levels of fertility combined with increased longevity ensure that populations in virtually all countries and areas are growing older,” the report observed.
Aging populations place an enormous burden on the young, because there are fewer of them every year in relation to the old – fewer taxpayers to prop up health and pension plans, fewer consumers to drive a domestic economy, fewer children to offer comfort and support for elderly parents.Different countries approach the question of aging differently, depending on attitudes toward family, elders, children and foreigners. “It depends on what kind of social structure you have,” Mr. Ishikane said. Developing societies face even greater challenges than developed ones, because they lack the resources to establish social safety nets for the elderly. “Each country has its own challenge.”Source: People older than 65 outnumber children under five, putting burden on younger generation – The Globe and Mail