The World is Getting Older

The number of people in the world who are 65 years of age or older is growing at the rate of 800,000 per month. As people across the world live longer and the birth rate continues to decline, the average age of the global citizen is increasing. By the year 2050, the number of people who are 65 or older will exceed the number of people under 15 years of age. This is a first in the human race. The aging of the population will be most pronounced in developed countries, especially Western Europe.

Currently, just over 7 percent of the world population is 65+ years old. By 2030, this percentage is expected to grow to 12 percent of the total world population. Currently, 12.6 percent of the U.S. population is 65+ years old. The forecast is that 20 percent of the U.S. population will be 65+ years old by 2030.

What accounts for this increased longevity? Many things, including medical and health breakthroughs and service. The credit goes to the converging influences of medicine, business, the family, and government.

This trend has many implications for economic development. Here are a few to consider:

1. People will work longer because they must and also because they want to. Fewer will retire at 65.
2. The demand for senior services will grow in most communities, giving rise to new business opportunities.
3. Housing demand will change in communities as new senior housing alternatives are demanded.
4. Seniors will increase their political say, shaping public policy.
5. Active retirement communities will grow in popularity as seniors live more active lifestyles.
6. Transportation services will change, perhaps contributing to the growth of better public transportation, including light commuter rail services, in many communities.
7. Demand for innovative senior medical and wellness services will grow.
8. We may see shortages of younger workers globally, increasing competition for younger talent.
9. Government on all levels will need to better integrate its senior services to respond to growing demand.
10. Personal income growth will be impacted by the aging population. Retirement locations attracting wealthy retirees will be more prosperous and those with high concentrations of low-income seniors will struggle financially.

These are just a few trends to look for.

Does it make sense to follow Arizona's lead and create a "Senior Living Industry Cluster?" I think it does make sense to move in this direction, even though for state budget reasons, Arizona's Office of Senior Industries was recently closed. Read more about this action. This is unfortunate. Hopefully the private sector can be motivated to provide some initiative in this area. Let's face it, their markets depend upon it.