One of the most profound shifts shaping the future of America and the world is the phenomenon of global aging. Though it rarely captures headlines, the steady decline in birth rates combined with increased life expectancy is leading to an unprecedented demographic transformation. By 2050, one in three people worldwide will be 50 years or older, and one in five will be 60 or older, totaling approximately 2.1 billion people.
The U.S. Aging Transition
While global aging is a universal trend, the pace of this transition varies across countries. The United States is ahead of the global average, with one in three people already aged 50 and over. By the end of this decade, the first millennials will reach 50, and by mid-century, older adults will constitute the largest demographic group in the U.S., outnumbering children under 18 and adults aged 18-49. This demographic shift will bring significant economic possibilities and challenges.
Economic Possibilities of an Aging Population
The aging population will dramatically impact consumer needs and wants, leading to broad economic implications. As reported by AARP’s Longevity Economy Outlook, U.S. consumers aged 50 and above currently account for 59 cents of every dollar spent. This figure is expected to rise as the demographic grows in size and economic influence.
Several sectors are already adapting to these shifts. The tech sector, for instance, is pioneering innovations tailored to older adults. At the recent Consumer Electronics Show (CES), the term “AgeTech” was highlighted as a burgeoning field with the potential to transform millions of lives. The increasing interest in AgeTech is supported by data showing significant growth in technology spending by those aged 50 and above. Innovations in age-inclusive technologies and ageless designs are set to open new growth opportunities for tech leaders.
Broader Economic Adaptation
Beyond technology, the growing consumer base of older adults will influence industries such as travel, hospitality, healthcare, financial services, and housing. These sectors will need to innovate and adapt to benefit from the increasing size and spending power of the older population.
The Workforce and Aging
The aging population also presents unique opportunities and challenges for the workforce. Traditionally, the prime working age is between 25 and 54, but with more workers now over 50, the definition of the “prime” age band is becoming outdated. The U.S. is currently experiencing significant workforce shortages, with more job openings than job seekers. This trend is expected to continue, making it essential for businesses to tap into the experienced 50-plus workforce.
To harness this talent pool, companies must take proactive steps to retain and retrain older workers. Developing multigenerational teams, which combine the experience of older workers with the innovation of early-career employees, can enhance productivity and drive innovation. Research shows that such teams are better able to serve diverse markets and innovate more frequently.
Competitive Advantages of Supporting Older Workers
The Growing With Age platform, a collaboration between the World Economic Forum, the Organization for Economic Cooperation and Development, and AARP, emphasizes that companies that support older workers gain competitive advantages. These include improved workforce productivity, stronger economic growth, and enhanced healthy longevity.
Conclusion
The growing number of adults over 50 presents unparalleled opportunities in terms of spending power and valuable work experience. As their share of the population increases, failing to leverage their potential would be a significant missed opportunity. By embracing the demographic shift and adapting business strategies accordingly, we can unlock stronger economic growth and create a more inclusive, productive workforce for the future.