An exciting world of “Silver” economy
The former kindergarten in Fuxing in Shanghai was closed for 7 years. Last year it reopened as a community center for 老爷爷 (lǎo yé ye) — old men and 老奶奶 (lǎo nǎinai) — old women who flock there every morning for some quality time. The center is immensely popular and profitable.
Ms. Chang Lihua, a 79 year-old widow, is taking lessons in the world’s most difficult language — English. Apparently, if one keeps challenging one’s brain with barely bearable loads, then no Alzheimer or his friends can ever attack. Ms. Chang had never met this Alzheimer foreigner or his friends, and is not eager to. Ms. Yang Xin, a married woman of 76, is taking ballet lessons.
Her husband, Mr. Yang Kwek Ping is disgusted with ballet’s Western decadence, and spends his quality time at the center playing Go with other respectable gentlemen.
By the way, did I mention, that such centres all over the world are great places to meet women? For 70-year-olds, there are 86 men for every 100 women. As people get older, the gender ratio for men, gets only better — for 90-year-olds, there are only 50 men for every 100 women (Our World in Data).
In 2023, China had 297 million people aged 60 and over — more than the entire population of Indonesia. Only India, China itself, and the US have bigger populations.
Welcome to the world of the Silver Economy with its silver hair, titanium dental implants, ceramic hip joints and electric cardio stimulators. Overall, the “silver economy” includes all those economic activities, products and services designed to meet the need of people of 50.
According to the World Bank— average global life expectancy shot up from 65 in the early 19902 to 73 in 2020. The global average life expectancy for a child born today is 77.5 years for a boy and 81 years for a girl.
According to Worldometer:
The highest life expectancy ages for the ladies are in:
1. Hong Kong — 88.26 yo — must be all this life extending pollution in the city
2. Japan — 87.77 yo
3. South Korea — 87.28 yo
4. Spain — 86.44 yo — hm… how did this non-Asia nation get here?
5. Singapore — 86.36 yo
For the gentlemen, the situation is somewhat similar:
1. Hong Kong — 82.97 yo
2. Australia — 82.28 yo
3. Switzerland — 82.17 yo
4. UAE — 82.17 yo — pretty good for a country where 67.9% of adults aged 18–69 years are living with overweight or obesity
5. Norway — 81.94 yo
By 2030, the number of people aged 60 years and above will grow globally to 1.4 billion, outnumbering the total of children aged under 10 years. But! Unlike those lovely children, the Baby Boomers have their total net worth or around $76.2 trillion — or enough to buy 51 million Ferrari F40, or 13.4 trillion Big Macs (at the US prices).
If the “silver” boys and girls in Europe ever decided to set up their own country, its GDP of €3.7 billion would place it №4 in the world, only behind the US, China and Japan. The US “silver economy” would rank №5, as the mighty German economy would just barely squeeze by.
Among other mighty “silver economies” are China — $1.3 trillion (№17 economy), Japan — 944 billion (№19); Germany — $617 billion (no.23); India — $580 billion (no.24); the UK — $425 billion (№35).
The “silver” economy is evolving and this process has a significant effect on our overall economic environment. Some reputable industries are disappearing, some new ones are emerging and getting a development boost.
Book stores, retail stores and travel agencies are going to die out — the “oldies” are not frequenting them any longer, and the youngster have never heard of them.
People are living longer, if not healthier. And the “Silvers” have a truly unique feature about them — they have plenty of leisure time. The time to kill. So, many paid services face increasing demand — foreign languages, dancing lessons, overseas and domestic travel, vocational training, various sports, arts and crafts.
Choi Soon-hwa, 81yo former nursing assistant discovered a new career — a fashion model. She now appears in fashion spreads in magazines and at runway shows around the country, and just last month took part in the beauty pageant to pick South Korea’s contestant for Miss Universe after organizers scrapped a previously imposed upper age limit.
But… the investment capital and consumer demand will freely flow here:
1. Managed residences — for rich and poor, in Florida and in Wuhan, the mix of hospitality, assisted living and medical centers will cater to a quarter of the world population;
2. Medical centers with accent on neurology, oncology, ophthalmology and a audiology;
3. Medical equipment — from rubber gloves to pace-makers and MRT units;
4. Pharma — from Tylenol to Viagra;
5. Cosmetics for “aging gracefully” — generally pretty expensive ones;
6. Household robots in Japan
7. Education for adults
8. Investment products with longer life terms — to last longer life spans — Rothschild thematic Silver Plus Fund — insurance, pensions, investment services.
So, forget investing in child care products. Gereontology clinics will fare better.
