A combination of declining fertility rates and increasing life expectancy continues to fuel the rapid aging of the population.
According to a recent UN World report, the global population of people over 65 years old is expected to jump from 617 million in 2017 to 1.6 billion in 2050. As a percentage of the overall population, older people will double from 8% in 2017 to 16% by 2050.
Medical science aims to help seniors better manage the aging process. As a result, the number of people over 80 is expected to triple, increasing from 137 million in 2017 to 425 million by 2050.
Asia will have the largest senior population
In absolute terms, Asia will see the largest increase in older people by 2050. North America will have a 44 million, or 75%, increase. Europe should see growth of 70 million, or a 54% increase.
More and more baby boomers (born between 1946 and 1964) are entering retirement. Even though the average annual income of a Gen-Xer (those born between 1965 and 1979) has already surpassed by that of boomers, they remain the wealthiest generation. In the U.S., the average net worth of households led by Americans between 65 and 74 is over $800,000.
Demand for medical services will rise
Studies in the U.S. suggest 81% of seniors consider good health the most important aspect of a happy retirement. However, the World Health Organization notes, “There is little evidence to suggest that older people today are experiencing their later years in better health than their parents.”
A study by the U.S. Bureau of Labour Statistics confirms that the average person’s health-care spending increases rapidly after age 45. For the group between 65 and 74, the average annual spend per person of $5,188 is almost 2.5 times higher than the health-care spend of those 25 to 43. In other categories, including food, housing, transportation and entertainment, people spend less as they age.
More generally, the U.S. spent $3.4 trillion on health care in 2016. That could grow to $5.5 trillion by 2025. Some studies project the average growth in health spending will be 6% per year. Rising costs for medical services and products are key drivers of that increase. The rapid aging of the population is another major factor.
Pharmaceutical companies, medical device manufacturers and health-care service providers will benefit from this pervasive secular trend.
Here’s a brief look at one health-services provider held by the iShares Global Health Care ETF (see page 11).
JOHNSON & JOHNSON (symbol JNJ on New York) operates through three businesses: Pharmaceutical (45% of revenue) makes anti-infective, contraceptive, dermatological and gastrointestinal drugs; Medical devices (35%) sells equipment for joint reconstruction and managing circulatory diseases; Consumer (20%) makes consumer products such as Johnson’s baby-care items, Band-Aid bandages, Tylenol and Motrin painkillers, and Listerine mouthwash.
The company continues to develop new treatments, and spends a high 13% of its revenue on research. The longterm outlook for Johnson & Johnson is positive.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.
We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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COMMENTS: TERMS OF USE
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Changes to this Policy
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TSI Network may revise this Policy from time to time.
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