Today’s older consumers are significantly wealthier than previous generations, and empirical evidence suggests they even have more savings and more disposable income than other age groups.
The growth of a global ageing population creates business opportunities and what is referred to as the ‘silver economy’.
With healthier lifestyles, advances in medicine, longer years of work, activeness, and the help of technology, humans are living longer.
The ageing of the world’s population is opening up new opportunities for the global economy – also introducing a silver economy in Namibia.
It is not uncommon to be invited to join in celebrating the birthday of an 80- or even a 90-year-old relative or acquaintance.
The United Nations Statistics Division Internet search engine UNdata and other population researchers suggest the world’s 65-plus population will surpass 13% by the end of 2035.
According to UNdata projections, the silver-haired population demographic group will increase 4.5 times faster than the non-senior population groups in the future.
With the advent of this silver age, in some countries society and business has evolved rapidly.
Entrepreneurs who have spotted business opportunities and are seemingly leading the pack are property developers.
Namibia too has residential complexes catering to individuals of 55 years and older.
Other business sectors such as transport, tourism, leisure and entertainment have been much slower in responding.
Namibia’s entrepreneurs had better progress, or, as frequently in the past, foreigners will again take advantage of opportunities on offer.
There are also individuals who retire later, and when they do, it is in good condition and with much greater wealth than earlier generations.
Some even embark on a second income-earning career after retiring and then have more time and money their parents could ever dream of.
In Japan, the retirement age is 65, but older people continue to earn incomes much longer with no need to use their savings.
A fifth of that country’s population is already older than 65 and is recognised as the silver generation with gold to spend.
They have huge amounts of savings, with a third of Japan’s household wealth now in the hands of those aged 70 and older.
Germany is increasing the retirement age, as well as other countries in Europe, the Americas, and Asia, where it is not uncommon for a 70-year-old or older person to go to work every day.
Carmakers, home appliance and technological firms, financial service providers, tourism and entertainment, health, beauty, pharmaceutical and other industries have been prepared for this new wave of older consumers.
They have used their product and service offerings to capture business from a whole new target market.
Smart entrepreneurs are aware that older people are new consumers who have more money to spend than the frequently targeted 40 and under age groups.
They adapt strategies and modify product and service offerings to become part of the silver market.
Is Namibia’s enterprise sector responding to the business opportunities provided by this rapidly expanding silver economy in a timely manner?
If they haven’t done so yet, Namibia’s entrepreneurs must anticipate the business potential offered by the country’s growing silver-haired population.
- Danny Meyer is reachable at danny@smecompete.com
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