The Silver Economy

How the growing number of older people creates new markets for products and services, and how businesses are adapting.

As populations age, older people make up a growing share of consumers. The economic activity linked to their needs and spending is sometimes called the silver economy or the longevity economy.

Spending power

In many rich countries, people aged 50 and over hold a large share of household wealth and account for a large share of consumer spending. In the United States, AARP, an organisation for older Americans, has estimated that people aged 50 and over account for more than half of consumer spending. Older people often have savings, paid-off homes and pensions.

What older consumers buy

Health and care: medicines, health services, home care and medical devices.
Housing: adapted homes, retirement communities and home modifications.
Travel and leisure: many retirees travel and pursue hobbies.
Financial services: pensions, annuities and wealth management.
Technology: devices designed to be easy to use, hearing aids and health monitors.

Business opportunities

Companies increasingly design products for older users: larger text, simpler controls, clearer sound, easy-open packaging and accessible websites. Such inclusive design often benefits everyone, including people with disabilities.

Overlooked market

Marketing experts argue that many businesses focus on young consumers and overlook older ones. Advertising often ignores or stereotypes older people, missing a large and growing market.

Hearing aids over the counter

In 2022, the U.S. Food and Drug Administration allowed hearing aids to be sold over the counter for adults with mild to moderate hearing loss, without a prescription. Prices fell, and technology companies launched new products, including earbuds with hearing features. Changing a rule opened a market serving millions of older people.

In India

India’s older population is growing quickly, creating demand for geriatric care, health insurance for seniors, retirement housing and home services. The market remains less developed than in richer countries, but it is expanding.

Thinking older people are not worth marketing to

Older consumers often have significant spending power and loyalty. Businesses that design for them, including with accessibility in mind, can reach a large and growing market.

Key takeaways

The silver economy covers economic activity linked to older people's needs and spending.
In the U.S., people aged 50 and over account for more than half of consumer spending.
Health, housing, travel, finance and technology are key markets.
Inclusive design for older users often benefits everyone.