The Longevity Economy Emerges as a $15 Trillion Market
The global longevity economy—powered by aging populations and reshaped by innovation in finance and technology—is rapidly evolving into one of the most significant economic forces of the century, with its value projected to reach $15 trillion by 2030.
At the heart of this transformation is a paradox. While people are living longer, healthier lives, financial literacy among older adults is declining. Studies suggest cognitive ability begins to erode gradually after age 65, with financial decision-making slipping by about one percent each year. This decline is already costly: in the United States alone, financial exploitation of seniors drains more than $28 billion annually. Combined with strained pension systems and shifting demographics, the risk is enormous.
Yet, alongside these vulnerabilities lies unprecedented opportunity. Investors and policymakers are reimagining retirement systems, care infrastructure, and financial tools to unlock the potential of the silver-age economy. Structured products like longevity bonds—expected to expand from $200 billion today to $1 trillion by the end of the decade—and annuities are becoming central pillars of financial security for retirees. At the same time, AI-powered financial technologies are stepping in to support decision-making, from robo-advisors to fraud-prevention tools. In China, such innovations have improved retirement planning efficiency by as much as 20 percent among older adults with lower financial literacy.
Governments, too, are adapting. The U.S. SECURE Act 2.0 has expanded access to annuities and automatic enrollment in retirement plans, while similar reforms are under discussion in Europe and Asia. Behavioral economics is also shaping this space, with automatic savings mechanisms and hybrid models that combine AI with human advisors, offering both efficiency and trust.
The stakes are high: an aging world can either be overwhelmed by the costs of decline or harness the longevity dividend to drive growth and resilience. For investors, the message is clear. The silver-age economy is not a niche—it is a $15 trillion market-in-the-making. Those who adapt early stand to benefit from a transformation that is reshaping finance, healthcare, housing, and consumer markets alike.
