Globally, the number of people over the age of 60 will more than double to 2 billion by 2050, according to the UN. People are tending to live longer across most parts of the world, something that by most measures is a cause for celebration. But plummeting birth rates in both developed and emerging countries are bringing with them a problem. The UN expects that, for the first time ever in human history, people over 65 will outnumber children under the age of five by 2047. Sales of adult nappies already surpass those of baby nappies in Japan, according to estimates by research firm Euromonitor International.
In economic terms, in just a few decades, the world’s youth will struggle to support the retirement of older generations – longevity-related costs are estimated to be 50% of 2010 global gross domestic product by 2050, according to the International Monetary Fund. In financial terms, there will be an estimated $30,000bn inter-generational transfer of wealth in the US alone in the next 30 to 40 years, forcing financial institutions and markets to drastically adapt to the new demographic norm.
