Ageing and Lifestyle

What is the Ageing & Lifestyle theme?

Ageing and lifestyle describes the changing ways that people are living across the globe as life expectancies rise. Ageing populations are one of the greatest social, economic and political transformations of our time.

For example, the global 60+ cohort is forecast to grow more than five times as fast as the under-60 population from 2018-20301, creating challenges and opportunities for governments, companies and individuals alike:

Percent change in global population size (estimate), 2018-2030.

Source: U.S. Department of Commerce

 

 

What are the potential benefits of the Ageing and Lifestyle theme?

The investible opportunities of ageing populations extend far beyond the obvious areas of healthcare. The changing lifestyles and needs of older generations could represent a multi-decade growth opportunity for investors. By 2030, two-thirds of over-60s’ consumption growth in developed markets will be spent across multiple industries dedicated to living well, from beauty and fitness, to travel and entertainment1.

Meanwhile other industries like real estate, financials and healthcare will have to rapidly adapt to retiring and elderly generations’ needs.

We invest in companies operating across four areas associated with the economic implications of longevity:

  • Silver Spending: Industries dedicated to living well; beauty/aesthetics, personal care, fitness, housing, travel, leisure and entertainment.
  • Treatment: Companies seeking sustainable treatment solutions for the coming generations.
  • Wellness: The wellness industry includes preventative medicine, personalized treatments, nutrition, beauty and anti-ageing treatments.
  • Senior Care: Markets for senior housing and specialist assisted living facilities, such as Memory Care that focuses on dementia patients.

 

Why do ageing populations matter for investors now?

1. We have reached a tipping point of ‘peak youth’ – the global number of adults aged 65+ now outnumber children under 5.

 

Source: UN as at March 2018

 

2. Living longer naturally incurs higher healthcare costs; preventing and treating age-related chronic diseases will be key driver of healthcare spending over next five years. 10,000 Americans hit the age of 65 every day, at which point personal healthcare spending doubles (US Dept for Medicaid).

Healthcare spendings by age

Source: US Centers for Medicare & Medicaid Service. Latest data available at May 2018. 

 

3. The retirement savings gap will grow 5% a year from 2015-2050 – that means an additional $28bn of deficit each day, according to the World Economic Forum. The increasing onus for individuals to save for, and enjoy, longer retirements gives wealth managers opportunity in an underpenetrated market: 52% of global wealth is held by over 50s but only 26% of retirees globally have ever used a professional financial advisor (HSBC)

 

All investments involves risks, including the loss of capital.

Discover more of the Evolving Economy

1.  Source: All data from the United Nations, correct as at January 2019.

*Automation - IFR World Robotics Report 2017, latest available data as of March 2018.
*Connected Consumer - Citi Research, Citi GPS “Technology at work v3.0”, August 2017
*Ageing & Lifestyle - US Department  of Commerce, latest data available as of March 2018
*CleanTech - Financier Worldwide, “Investing in the clean technology revolution”, January 2016
*Performance Drivers - AXA IM, correct as at 29 December 2017

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Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
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