Dividends of the 'silver' economy

The ageing population is causing a major and unavoidable shift in demographics

While the ageing population continues to place pressure on advanced economies, Jens Peers, equity and fixed income CIO at Mirova, argues the silver economy itself provides many opportunities for investors.

The fact baby boomers are on the cusp of retirement will also have a huge impact on the shape of our economies, positively and negatively.  The cost of an ageing population can weigh heavily on public and private support systems for older persons. The sustainability of our current welfare system, where in most countries the active workforce provides most of the funding, is under threat as many countries will see the size of their workforce reduce over the next decades due to lower fertility rates, combined with longevity (see graph, below).  On the other hand, an ageing population cou...