Yannick Ouaknine exposes his own vision about the " Silver Economy "
Senior ESG Analyst
Societe Generale Corporate & Investment Banking
Yannick Ouaknine joined Societe Generale Corporate & Investment Banking SRI team as Senior Marketing Analyst in March 2007.
After completing an MBA from the Ecole Supérieure de Gestion de Paris, Yannick joined BNP Paribas Asset Management in August 2000 as an RFP Analyst before moving on to become a buy-side SRI Analyst until he joined Societe Generale.
1 | What are the demographic trends in terms of aging population, as well as the consequences on our economies and companies ?
Much has been written about the "Silver Economy", being a major demographic threat for some countries, including Japan, Italy or Germany. But no one can say with a high degree of certainty which countries are preparing for it properly, and which measures will be most effective.
To illustrate, between 2015 and 2030, the number of people in the world over the age of 60 is expected to increase by 56% according to the United Nations (UN), reaching 18% of the world population.
With the baby boomer generation nearing retirement age and given the difference in their spending habits compared with millennials, understanding the ageing population’s needs and wants could reveal a potenial a catalyst for market outperformance over the coming years.
Underestimating or ignoring these demographic trends could result in “a miss” in terms of financial outperformance.
2 | How would you define the Silver Economy ?
No generally accepted definition of the “Silver Economy” has been yet established. However, we considered that "Silver Economy" covers economic opportunities with the growing public and consumer expenditure related to population ageing and the specific needs of the population over 50.
We also need to keep in mind that this is not a homogeneous group. The ageing population can be divided in 3 groups, active, fragile and dependant, each with their own set of needs.
3 | Should companies consider the aging population as a long term threat or a new Eldorado ?
Both ... and as often, anticipation is a must!
Improving the quality and life expectancy of our seniors should have a positive impact on overall consumption patterns and ideally support growth across most sectors, but there are a few noticeable sectors that will directly benefit from this theme, such as: healthcare, tourism and travel services, internet providers, health insurance, wealth management, or luxury goods.