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.
04 May 2018
What does the silver dollar mean for investors?
Older generations are an often overlooked driver of global spending. Discover what increasing longevity means for companies and consumption.
04 May 2018
What you need to know about longevity in 9 charts
Increasing life expectancies are one of the greatest socioeconomic transformations of our time, with significant implications for companies and investors alike.
28 November 2018
What If You Live to 100?
Half of children born this year can expect to live to 100 or more, what will you do if you live you 100?
Discover more of the Evolving Economy
Forecast to grow 10-15% annually until 2025*, the robotics industry is rapidly changing how we live and work
Just 9% of retail transaction are made online today, which will likely grow as smartphone adoption rises globally*
Huge demographic and environmental changes are forecast to make CleanTech a $1.3 trillion market by 2020*
The growth of the global middle class is at a 150-year high, boosting consumption in Asia and the developing world*