Get set for the 'silver dollar' — an economic wave worth $20 trillion that's heading our way

Discussion in 'Markets & Economies' started by Oddjob, Dec 3, 2018.

  1. Oddjob

    Oddjob Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2018
    Messages:
    3,749
    Likes Received:
    6,771
    Trophy Points:
    113
    Location:
    New Gulagland
    http://www.msn.com/en-au/news/marke...on-thats-heading-our-way/ar-BBQnPm7?ocid=News


    Many Australians may not be aware, but an enormous, fast-growing market is on the way and it's estimated to be worth trillions of dollars globally.

    Dubbed the "silver economy", the term encapsulates the consumer and employment opportunities offered by the ageing population, with people living and working for longer.

    In coming years everything from tourism to healthcare is likely to be increasingly geared and marketed towards this growing demographic.

    Catching the silver wave
    Perth businesswoman Natasha Winburn-Clarke is one of those who has positioned herself to capitalise on the booming older economy.

    The former food and wine consultant both caters for and employs people over 50 at her gourmet frozen meals business.

    It all started four years ago when she and her two children were at home sick and Ms Winburn-Clarke raced out to the local supermarket in search of sustenance.


    "There was nothing there that I wanted to serve my family," she said.

    "I realised very quickly that there was a gap in the market for high-end frozen meals."

    The experience sparked a new enterprise in preservative- and additive-free cuisine which she home delivers and sells from outlets in the Perth suburbs of Cottesloe and Applecross.

    As well as working families, older customers have become one of her biggest markets.

    "[It's] anyone over 50 who is either buying for their parents who're in their 80s or 90s, or for themselves, " she said.

    "… They can't be bothered spending four hours on a boeuf bourguignon on a Wednesday night, yet they are happy to part with a bit of cash and get something really high quality."

    The power of the baby boomers
    With Australians living longer — and over 55s holding more than half of the nation's wealth — their spending potential is substantial.

    The European Commission recently estimated that by 2020 the private spending power of the elderly would reach $US15 trillion ($20 trillion) globally.

    But, it's not just about products and services.

    It's also about employment and boosting opportunities for the growing number of people who both need and desire to work for longer.

    A study commissioned by the EU earlier this year said the "silver economy" should be connected to "a positive and socially inclusive identity for older adults".

    While she was open to younger staff, Ms Winburn-Clarke said mature workers were a "good fit" for her business.

    Increasingly, she said, her older customers wanted advice on nutrition and a social interaction with someone to whom they could relate.

    Sometimes, it could be the only conversation they had that day.

    When 54-year-old Karen MacDonald was recommended by a mutual friend, Ms Winburn-Clarke realised she had struck gold.

    "Karen walked through the doors and immediately started gushing about the product, she could identify with it," she said.

    "She had an elderly mother as well.

    "To me it was a bit of a lightbulb moment because I thought, 'OK, here's someone who is slightly older but who could really sell the brand because she actually lives the life'.

    "And from a business owners' perspective, she was reliable and I could really count on her."

    Ageism rife in the workplace
    It later turned out Ms MacDonald came with a financial bonus.

    She made her new employer aware of a Federal Government scheme that provides incentives to businesses that employ older workers.

    The program is one of several measures set up to help mature-aged workers get back into the workforce and it has been welcomed by seniors' groups.

    A recent national survey found that up to one-third of employers were reluctant to hire workers over a certain age and, for more than two-thirds of this group, that age was over 50.

    For Ms MacDonald, ageism in the workplace made no sense.

    "I think being older myself, you've [got] the life experience … the knowledge that you gather along the way," she said.

    "I think we're reliable, we want to work.

    "We're an ageing population. People don't retire anymore, they are working until their 70s, well into their 80s. And, you know, why shouldn't we?

    "I think the door should be open and more employers should take note of people over 50. Give them a fair chance."

    More workers means more dollars
    But the Council on the Ageing was concerned ageist stereotypes were still having a negative impact on older consumers and workers.

    It held a national policy forum called "safeguarding the silver economy" earlier this year to raise awareness of the challenges.

    "Many older Australians often experience age discrimination and are vulnerable to exploitation, both in the workplace and in complex consumer markets," council chief executive Ian Yates said.

    "In order to fully capitalise on the benefits and opportunities of an ageing population, we need to move past negative stereotypes to better identify and meet the needs of a dynamic, diverse group of older Australians."

    Mr Yates welcomed the Federal Government's range of initiatives to boost mature-aged employment, but he said more needed to be done.

    He pointed to New Zealand's diverse mix of policies as something Australia could learn from.

    "In New Zealand, the participation of mature-age workers from roughly 50 upwards into the 70s is significantly higher," he said.

    "If mature-age workforce participation increased by 5 per cent, the estimates are that there would be $48 billion a year injected into the Australian economy."
     
  2. sammy

    sammy Active Member Silver Stacker

    Joined:
    Jul 21, 2015
    Messages:
    340
    Likes Received:
    89
    Trophy Points:
    28
    Location:
    Sydney
    Well ... at least some form of silver is in the headlines.
     
  3. StewyD32

    StewyD32 Well-Known Member Silver Stacker

    Joined:
    Nov 11, 2016
    Messages:
    1,139
    Likes Received:
    730
    Trophy Points:
    113
    Location:
    Western Australia
    Seen a report on Saturday, that the Japanese government is giving away free houses. This is due to the aging population. Obviously the old are passing on and no-one to take over. The vacancy rates are extremely high in these circumstances with many being in disrepair and in small towns in the country.
    Wonder if this will ever be the case here?
    A free house in Australia..... I think not
     
  4. milled

    milled Active Member

    Joined:
    Dec 4, 2018
    Messages:
    236
    Likes Received:
    116
    Trophy Points:
    43
    "A free house in Australia..... I think not"

    Wilcannia?
     
  5. SlyGuy

    SlyGuy Active Member

    Joined:
    Sep 6, 2018
    Messages:
    251
    Likes Received:
    178
    Trophy Points:
    43
    Location:
    USA
    Hobbies, relaxation, travel, fitness, socialization, romance... you know... quality of life type reasons. Those are pretty good reasons to learn how to save outside just your home mortgage and to learn how to manage a budget.

    There is no reason to work at those ages except total the person has been totally financially irresponsible for decades and decades. Most workers are a shell of their former physical self by 70, and even white collar professionals have little productivity left since their education is so out-dated by that time.

    As for the "what if I want to still work" morons: get a hobby. Only boring people get bored.
     
    Glenis and Silverling like this.
  6. Ag bullet

    Ag bullet Well-Known Member

    Joined:
    Dec 27, 2013
    Messages:
    1,582
    Likes Received:
    1,570
    Trophy Points:
    113
    Location:
    SE QLD
    I'd pay a fee not to get a free house in wilcannia?
     
    willrocks and milled like this.
  7. Glenis

    Glenis Member

    Joined:
    Dec 25, 2018
    Messages:
    35
    Likes Received:
    25
    Trophy Points:
    18
    The US may be different but the stats show that retired people spend much less than they do through their 50's when they are more likely to be buying the 'last car', last lounge suit, last set of white ware etc. They're not out there buying new golf carts and having manicures everyday. They swap restaurant meals and takeaways for less meat and more fruit and vegetable as they eek out a longer, healthier life. The loss to the American economy of 50 million retirees is about $1.5 trillion a year.
     
    SlyGuy likes this.
  8. SlyGuy

    SlyGuy Active Member

    Joined:
    Sep 6, 2018
    Messages:
    251
    Likes Received:
    178
    Trophy Points:
    43
    Location:
    USA
    I agree. The myth of the rich retiree is largely that: a myth. Sure, there are some rich old people, but they are the exceptions... and most of them have been rich for many years before retirement also.

    Back in reality, the majority of people nearing or at retirement age in USA have an under-funded (or even nonexistent) retirement account. This has been confirmed by studies from the major 401k and retirement companies like Fidelity and Vanguard. The median senior will not be taking lavish vacations or dining out frequently; they will be mainly or even entirely dependent on government handouts like social security and insurance. The ones who are "above average" might have a few hundred thousand tucked away and/or a house they paid off and can sell for some cash when they downsize. The median seniors sure won't be living lavishly, though.

    We are at an intersection between the baby boomer generation that always expected a pension and government handouts (defined benefit plans) and the younger generations that realize they are fully responsible for their own retirement (defined contribution plans). USA will basically look like Japan in another decade or two: long life expectancy, low percentage of population working, high percentage of taxes on the workers to sustain a minimum standard of living for many retired, stagnant economy.
     
    Glenis and willrocks like this.
  9. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,064
    Likes Received:
    3,292
    Trophy Points:
    113
    Location:
    Australia
    The conundrum of course, is that you don't know when you're going to die, and so you don't know how much more money you're going to need to get to the finish line.

    Of course older people save more than they need to, or probably more accurately spend less than they could because of that unknown end of spending moment. I saw a survey result to that effect a while back, and reflected that most of my peer group friends continue to save, even though they can afford to spend every penny of their superannuation or pension stipend.

    Now I'm off to find these gourmet frozen meals!!
     
    Glenis and SlyGuy like this.
  10. SlyGuy

    SlyGuy Active Member

    Joined:
    Sep 6, 2018
    Messages:
    251
    Likes Received:
    178
    Trophy Points:
    43
    Location:
    USA
    Yes, that is part of it. Another sizable puzzle piece is the cost of health care. The cost of health care gets much higher for most people as they age, and it is not always predictable. Even with socialized medicine or insurance (Medicare in USA), there are still out-of-pocket medical costs which cannot be underestimated.

    Much like their finances, most people don't take very good of their health or their knowledge of how health care works. They are unwilling or afraid to tackle the issue, so they just sit and expect other to do it for them. Hospitals and doc offices and drug stores are therefore glad to sell the naïve seniors all the tests and labs and meds and vitamins and devices and visits which the customer ("patient") will buy. Much like many young and middle age people are addicted to spending on clothing, dining, toys, etc... many seniors spend that way on unnecessary medical stuff due to boredom and/or good marketing.

    In an ideal world, people would read books and manage their own investments by setting up a growth system during working years with a transition to relatively stable fixed income which they can rely on into later age. They would also largely avoid doctors and remain basically healthy with nutrition and logical preventative care. Those things require effort, though... so we know the vast majority of people probably won't do one or both of them. I hear it is better to just count on government or kids or advisors for all that stuff. :confused:
     
    Last edited: Dec 27, 2018
    Glenis likes this.
  11. Glenis

    Glenis Member

    Joined:
    Dec 25, 2018
    Messages:
    35
    Likes Received:
    25
    Trophy Points:
    18
    This is true but in NZ and Aussie we don't have that problem - apart from GP (doctor) visits hospitals and operations are free, unless you have health insurance and you can choose to pay for a better quality stay.

    In an ideal world I agree however it's not as easy as it used to be, there is very little left from a pay cheque for most people. Housing or rents take a much larger chunk of money than they did 10 - 15 - 20 years ago.
     
    SlyGuy likes this.

Share This Page