We’re growing old. Not just individually but the world’s population as a whole.
“For the first time in recorded history, the number of children under the age of 5 no longer outnumber those 65 and above,” says George Evans, chief investment officer for equities at OppenheimerFunds in New York.
By 2030, adults older than 60 will outnumber children younger than 10, according to research by the United Nations Population Division. “Lower fertility rates and increased life expectancies are transforming demographics” across the globe, says Dan LaPlante, chief investment officer for private wealth management at Citizens Bank. While Europe and North America have the fastest aging populations, by 2050, nearly 25 percent of the population in every region on both continents will be seniors.
As they grow in number, seniors will control an increasing proportion of global wealth and spending, and that has new implications for investors. “Longevity lends itself to a lot of growth opportunities” for investors, says Joe Quinlan, head of market and thematic strategy for Bank of America’s wealth management division in New York. To find them, you only need to follow the money trail from seniors’ spending patterns.