People older than 65 outnumber children under five

People older than 65 outnumber children under five

A new report from the United Nations highlights the fact there is no slowing down the aging process and the growing cohort of people over 65 years old across the globe. This is one of the key drivers behind our Aging of the Population investing theme, which focuses on the growing array of products and services that will cater to this demographic group. The UN report also calls out the upside down age  pyramid that will result given low fertility rates, which will also spur the demand for services as well as raise questions over how they will be paid for in the coming years.

The bottom line is this UN report clearly speaks to both the global tailwinds and headwinds associated with our Aging of the Population investing theme.

At the Osaka G20 summit in Japan, world leaders are grappling with one of the most challenging issues humanity faces today: We’re not getting any younger.

Last year, for the first time in human history, the number of people on Earth aged 65 or older outnumbered children under five, according to a recent United Nations report. People over 65 are now the world’s fastest-growing age group. Three decades from now, one-quarter of the population in Europe, the United States and Canada will be over 65.

“Historically low levels of fertility combined with increased longevity ensure that populations in virtually all countries and areas are growing older,” the report observed.

Aging populations place an enormous burden on the young, because there are fewer of them every year in relation to the old – fewer taxpayers to prop up health and pension plans, fewer consumers to drive a domestic economy, fewer children to offer comfort and support for elderly parents.

Different countries approach the question of aging differently, depending on attitudes toward family, elders, children and foreigners. “It depends on what kind of social structure you have,” Mr. Ishikane said. Developing societies face even greater challenges than developed ones, because they lack the resources to establish social safety nets for the elderly. “Each country has its own challenge.”

Source: People older than 65 outnumber children under five, putting burden on younger generation – The Globe and Mail

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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