I’ve missed another week, but here I am back again. This week I am bringing a new report by The International Longevity Centre (ILC-UK) called “Maximising the Longevity Dividend”. While older people and an ageing population are often painted as a risk to our economy, this new research shows that the UK’s ageing population brings economic opportunities through older people’s growing spending, working and earning power.
Their research has found that households headed by someone aged 50+ have dominated total expenditure (excluding housing costs) since 2013. And spending by older consumers will continue to rise significantly over the coming decades, from 54% (£319 billion) of total consumer spending in 2018 to 63% by 2040 (£550 billion).
Those 50+ also shift their spending towards non-essential purchases such as leisure, transport, household goods and services.
People aged 50+ are also making an increasingly significant contribution to the economy by continuing to work.. The share of the workforce aged 50 and over rose from 26% in 2004 to 32% in 2018, and it could account for 37% by 2040. People aged 50 and over earned 30% of total earnings (£237 bn) in 2018 and this is expected to rise to 40% by 2040 (£311 bn). The ILC have said that supporting people aged 50 and over to remain in the workforce could add an additional 1.3% to the UK GDP a year by 2040.
To read and download the report CLICK HERE.
AS David Sinclair, Director of the ILC, says
“As the population ages there are enormous economic opportunities, but these are currently being neglected. We’ve become accustomed to hearing our ageing population talked about as a bad thing – but the reality is it could be an opportunity. However, we won’t realise this ‘longevity dividend’ through blind optimism about ageing. Instead, we need concerted action to tackle the barriers to spending and working in later life.”