The Longevity Economy

1. The longevity economy is reshaping the future of business and society

The aging of populations represents the most profound change that is guaranteed to come to high-income countries everywhere and most low- and middle-income ones as well.

Demographic shift. The world is experiencing an unprecedented aging of populations due to increased longevity and declining birth rates. By 2050, the global proportion of people 65 and older will nearly double to 16.7%. This demographic change is creating massive economic opportunities, with spending by older adults in the U.S. alone reaching $5.6 trillion in 2015.

Economic impact. The longevity economy is not just about products for older people - it's transforming entire industries and societies. Key areas of impact include:

• Healthcare and caregiving
• Technology and smart homes
• Financial services and retirement planning
• Transportation and mobility solutions
• Education and lifelong learning
• Travel and leisure

Business opportunity. Companies that recognize this demographic shift and adapt their products and services stand to benefit enormously. However, many businesses are still unprepared for an older world, missing out on the potential of this growing market.

2. Our current narrative of old age is outdated and limiting

Old age, as it stands, is ridiculously unequal.

Outdated stereotypes. The prevailing narrative of old age - centered on decline, dependency, and leisure - was largely constructed in the early 20th century. This narrative fails to reflect the diverse experiences and aspirations of today's older adults.

Negative consequences. This limiting narrative:

• Constrains how older people see themselves and what they believe is possible
• Leads to ageism and discrimination in the workplace and society
• Results in products and services that don't meet older adults' true needs and desires
• Creates intergenerational tension and fears of demographic "time bombs"

Need for new stories. We need new, more empowering narratives of aging that recognize older adults as valuable contributors to society and consumers with diverse wants and needs. This shift in perspective is crucial for businesses, policymakers, and society as a whole.

3. Women are driving the transformation of the longevity economy

Women's notions of what old age is tend to be further flung from the current narrative than those of men.

Economic influence. Women control the majority of household spending decisions and are the primary caregivers for older adults. They are also living longer than men on average, making them a crucial demographic for businesses to understand and serve.

Unmet needs. Traditional products and services often fail to meet the true demands of older women. This creates opportunities for businesses that can tap into their insights and desires.

Innovation drivers. Women, especially those in midlife and beyond, are increasingly becoming entrepreneurs and "lead users" - innovating solutions to problems they experience. Examples include:

• Online platforms for social connection and dating
• Fashion brands that celebrate style at all ages
• Health and wellness products tailored to women's needs

4. Age-friendly design benefits everyone, not just older adults

Transcendent products, in particular, are like the rising tide that lifts all ships, regardless of whether they're brand new or have braved decades of stormy seas.

Universal design principles. Products designed with older users in mind often end up benefiting people of all ages. Examples include:

• OXO kitchen tools with ergonomic grips
• Smartphones with larger screens and voice controls
• Lever door handles instead of knobs

Accessibility as innovation. Solving design challenges for older adults or those with disabilities can lead to breakthrough innovations that improve products for everyone. This "transcendent design" approach creates products people actively seek out, rather than stigmatized "old person" solutions.

Business opportunity. Companies that embrace inclusive design principles can tap into larger markets and create products with wider appeal. This approach also future-proofs products as the population ages.

5. Health and safety innovations are improving quality of life in old age

Products that prioritize fun, a delightful user experience, and the aspirations of the older consumer are in no way limited to the futuristic or high-tech.

Beyond basic needs. While health and safety are crucial, products for older adults should go beyond just solving problems. Successful innovations:

• Enhance independence and dignity
• Enable social connection and meaningful activities
• Are enjoyable and delightful to use

Technology integration. Emerging technologies are creating new possibilities for aging well:

• Smart home systems for monitoring health and safety
• Robotics and AI for assistance and companionship
• Virtual and augmented reality for cognitive stimulation and social engagement

Holistic approach. The most effective health and safety solutions consider the whole person, addressing physical, mental, and social well-being. This might include combining medical monitoring with social platforms or integrating exercise into daily activities.

6. Work and education are being reimagined for longer lifespans

Beyond pursuing work, beyond seeking out new knowledge, there is one other important thing that older people chasing wild new sources of meaning are likely to do: buy stuff—and a lot of it.

Rethinking retirement. The traditional model of retirement is becoming obsolete as people live longer, healthier lives. Many older adults want to continue working, either in their established careers or new fields.

Lifelong learning. Education is no longer just for the young. Older adults are seeking opportunities to:

• Acquire new skills for work or personal growth
• Pursue passions and interests
• Stay mentally sharp and socially engaged

Flexible work arrangements. Companies are adapting to retain older workers and tap into their experience:

• Phased retirement programs
• Mentorship and knowledge transfer initiatives
• Age-diverse teams and multigenerational workplaces

7. The pursuit of meaning and legacy is a powerful force in later life

There is a group of consumers living out on the cutting edge of age. They're intimately acquainted with the real challenges that can pop up in later life as well as what can go right.

Beyond leisure. Many older adults are seeking purpose and meaning beyond traditional retirement activities. This drives demand for:

• Volunteer and philanthropic opportunities
• Encore careers and entrepreneurship
• Creative pursuits and self-expression

Legacy building. The desire to leave a positive mark on the world becomes increasingly important. This manifests in:

• Family history and storytelling projects
• Mentoring and knowledge sharing
• Charitable giving and social impact initiatives

Personal growth. Older adults continue to evolve and seek self-actualization. Products and services that support personal development and new experiences are in high demand.

8. Technology is enabling new models of aging in place and community

The advent of such transcendent technologies will, yet again, add to older adults' independence while improving health outcomes—both improving later life and moving another pebble from the "crisis" side of the longevity scales to the "opportunity" side.

Smart homes. Technology is making it easier for older adults to live independently:

• Sensors and AI for monitoring health and safety
• Voice-controlled systems for home management
• Telemedicine and remote care solutions

Connected communities. Digital platforms are fostering new forms of social connection:

• Virtual villages for neighborhood support
• Online interest groups and learning communities
• Intergenerational networking and skill-sharing

On-demand services. The sharing economy and gig work are providing flexible support:

• Ride-sharing and grocery delivery
• Task-based help with home maintenance
• Peer-to-peer caregiving networks

9. Businesses must adapt to serve the diverse needs of older consumers

If you're selling a retirement financial product, for instance, do your commercials show people walking on a beach or a golf course or involved in their community?

Market segmentation. The older consumer market is not monolithic. Businesses need to recognize the diversity of:

• Age sub-groups (young-old, middle-old, old-old)
• Lifestyles and values
• Health status and capabilities
• Financial resources

User-centered design. Successful products for older adults:

• Address real needs and desires, not stereotypes
• Involve older users in the design process
• Are tested with diverse user groups

Marketing and messaging. Effective communication with older consumers:

• Avoids patronizing or infantilizing language
• Showcases diverse representations of aging
• Focuses on benefits and aspirations, not just problem-solving

10. The baby boomer generation is redefining the experience of aging

There is another way of thinking about products that puts success within reach: above all other considerations, they should make it easy for consumers to fulfill their jobs.

Cultural influence. The baby boomers have shaped society at every stage of life and will continue to do so as they age. Their expectations and demands are driving innovation in products, services, and policies for older adults.

Tech-savvy consumers. Unlike previous generations, boomers are comfortable with technology and expect digital solutions. This is accelerating the development of:

• User-friendly interfaces and devices
• Online platforms for health, finance, and social connection
• Digital content and entertainment tailored to older audiences

Redefining aging. Boomers are challenging traditional notions of what it means to be "old":

• Pursuing active and engaged lifestyles
• Embracing continued learning and personal growth
• Demanding products that align with their values and self-image

Last updated: October 8, 2024