Document summary
This primer from Bank of America Merrill Lynch highlights the challenges and opportunities presented by global aging. According to the UN, the number of older persons (60+) is expected to more than double from 841 million in 2013 to 2 billion+ by 2050. Additionally, People aged 65+ will outnumber children under 5 for the first time in human history in 2047. Due to falling birth rates, countries are headed towards a dramatic decline in population. As such, this report views all aspects of society, and the economy should be regarded with demographic transformation in mind.
There are major challenges related to an aging population which has been underestimated. The report implies that longevity risk will be the most significant challenges facing retirement systems over the next 50 years. Women, Emerging Market and low-income elderly have worrying prospects due to income inequality. However, with increasing numbers of people over 60, their spending power is expected to reach US$15 trillion by 2020. Additionally, this primer from Bank of America Merrill Lynch highlights 3 points of entry for investors: Pharma & Healthcare, Financials Insurance and Asset & Consumer.