The Tide Has Turned for the Longevity Economy
The Tide Has Turned for the Longevity Economy
Thanks to falling birthrates, longer life expectancy, and the graying of the baby boomer cohort, our society is being transformed -- right now.
There’s a pretty clear theme to this issue of Longevity Gains. While the demographic point of no return may be 2030, it seems the world has finally woken up to the new realities of an aging population today in 2023.
The level of mainstream awareness has skyrocketed since I first focused Further on the “new middle age” back in 2019, but most of it has happened this year. Any concerns of being “too early” to this space should be laid to rest. Now is the time to go to work!
This week’s podcast guest has had a lot of influence on me when it comes to thinking about the longevity economy and the challenges and opportunities ahead. You’ll definitely hear that influence in our conversation.
He’s Bradley Schurman, a demographic futurist and specialist in understanding what it means when there will soon be more people older than sixty-five than those under the age of eighteen.
Bradley is the author of The Super Age: Decoding Our Demographic Destiny – a highly influential book about the demographic changes that are already disrupting the status quo. He is the founder and CEO of an inclusive design firm by the same name.
Tune in to hear about the market forces that propelled youth culture at the time the Baby Boomers were born, and how that same generation is dealing with being basically ignored despite sitting on a mountain of wealth – and why that situation is changing right now.
Longevity Economy vs. Longevity Industry
When people hear the word longevity, they often think of the longevity industry that’s dedicated specifically to helping people live longer, healthier lives. Think Dr. Peter Attia’s recent book, Outlive: The Science and Art of Longevity, or the multitude of books that explore how to live to 100 years old.
The longevity industry beyond books is a big deal, projected to reach $44B+ in revenue by 2030. These are the treatments that help keep people going with the best possible healthspan until a possible age reversal solution becomes viable.
But it’s important to understand that the broader longevity economy dwarfs this subset. That’s because the economic effect of an aging population that lives longer and healthier lives impacts just about every market sector.
The true catalyst for the longevity industry will be affordable treatments that make healthy aging available to everyone. As it stands, the dramatic shift in medicine from treating disease to preventing disease (specifically the diseases of aging) is incredibly expensive, making it largely an indulgence of the wealthy.
The point to consider is that the companies working on longevity treatments are funded with billions in venture capital. The information aspects of the longevity industry are much more accessible for startups and small businesses, but it’s already crowded and competitive.
Just about every business that caters to older consumers will touch on the health aspects of living longer to some degree. But the real underserved opportunity is promoting products and services that allow healthy older consumers to live life to the fullest.
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The World Wakes Up to the Longevity Economy
In a striking call to arms, the New York Times Editorial Board says it’s well past time to acknowledge and take action based on the huge demographic shift underway.
Chatting with Bradley Schurman before we started recording this week’s podcast episode, he said the tone of this piece is something he’s not seen before in his long career of serving older adults, but he definitely welcomes it.
America may still think of itself as a young nation, but as a society, it is growing old. Thanks to falling birthrates, longer life expectancy and the graying of the baby boomer cohort, our society is being transformed. This is a demographic change that will affect every part of society. Already, in about half the country, there are more people dying than being born, even as more Americans are living into their 80s, 90s and beyond. In 2020 the share of people 65 or older reached 17 percent, according to the Census Bureau. By 2034, there will be more Americans past retirement age than there are children.
Just in the five months since I started the Longevity Gains project, the amount of mainstream media coverage on the topic has been amazing to see. And it really shouldn’t be surprising, as people like Bradley will tell you that this should have happened years ago – but better now than never.
Can America Age Gracefully? (New York Times)
Also, no one touches Apple when it comes to marketing to older people, but the other tech titans need to catch up:
America’s tech giants are among the world’s largest and most innovative businesses; if they took a more open-minded approach to aging—if they considered solving the problems of older customers as eagerly as they chased teen fads—they could establish a model for aging in a tech-besotted world.
Tech Companies in Silicon Valley Can’t Keep Ignoring Seniors (New York Times)
It’s Happening Right Now
Meanwhile, AARP released a lengthy and useful report on how the aging population is shaking up the United States, why it’s happening, and what it means. The report breaks down the impacts we’re seeing via sector, including the workplace, financial services, travel, entertainment, and fitness.
The report starts off with this jolting fact:
We the people, at midlife and beyond, represent the third-largest economy in the world, after China and the U.S. as a whole.
That certainly puts things in perspective. I recommend reading the entire report as a way to generate ideas for your own endeavors. Here are a few highlights:
The Workplace
“Despite decades of rampant ageism in the workplace, the number of workers 65 and older has mushroomed by 117 percent in a span of 20 years, according to the U.S. Bureau of Labor Statistics. Remarkably, employment of individuals 75 and older has increased by the same percentage.”
“Hiring older workers is not mere altruism: An estimated 10 million jobs in America are sitting unfilled.”
Healthcare
“‘More than previous generations, older people today want to be as active and healthy as possible — and the retail industry is picking up on that,’ says Rachel Bonsignore, vice president at the consumer research firm GfK Consumer Life.”
Travel
“AARP’s “2023 Travel Trends” study found that Americans 60 to 69 years old are the biggest travel spenders, planning to lay out $7,300 on average this year, compared with about 30 percent less for travelers ages 18 to 49. Travelers 50-plus will average four trips this year.
‘For older travelers, spending is up in a way that makes it hard for the travel industry to ignore,’ says Patty David, vice president of consumer insights at AARP.”
Lots more here:
How Older Adults Are Changing America
Keep going-