India is a young country with a demographic dividend. Yet, because of increasing life expectancy ( 2x vs 75 years ago) and lower fertility rates, the 60+ population is the fastest growing segment of our population. The 60+ population is forecast to grow from 157 mn in 2024 to 195 mn in 2030 and to double to almost 350 mn by 2050. There will be less than 10 countries in the world in 2030 with a total population the size of our 60+ population.
Amplifying this demographic shift are two factors viz the increasing number of nuclear families and the growing number of children who live in cities other than the ones their parents live in, including the ~3 million Indians who migrate every year.
These changes mean there is a large part of our population that has needs that need to be met differently than in the past. These needs vary across physical and mental health, nutrition, convenience (daily chores), safety, recreation and engagement ( travel is a clear one) and finance. The 60+ is not a monolithic block and needs could vary based on health condition and income. The active and healthy 60+ is more interested in engagement and a like-minded community whereas for others, health needs could dominate. Financing mechanisms such as health insurance are currently underdeveloped and would be key going forward. With the generation born in the 50s/60s typically having higher income than the previous generation, the 60+ of today and future would have more money to spend. Also, in this category the children are often the payers and the influencers.
When one speaks of the “silver economy”, senior living is often the top-of-mind association. According to a JLL study, the stock of senior living units – both retirement communities and assisted living facilities – has tripled in the last decade,. The southern states dominate the supply currently, given that demand is greater in these states. This sector is still in its infancy, though it saw a boost post Covid. While there are many reasons to believe demand for senior living will continue to grow, there are headwinds from our societal norms, which will wane over time. As a result, care at home has grown quickly but the challenge here is the supply of good carers. Mindsets are probably also responsible for the slow growth of the reverse mortgage market.
Read more: https://www.linkedin.com/posts/linksrinivasan_india-is-a-young-country-with-a-demographic-activity-7317399898570551296-DVT
