Getty
As a new decade and year are about to begin, professional forecasters are, of course, going through the exercise of guesstimating the future course of the markets and U.S. economy. From what Ive seen, theyre generally expecting the record-breaking U.S. expansion to continue at a middling 2% pace in 2020. Among the factors routinely listed as preventing faster growth is the demographics of aging: The rising ranks of retirement-age Americans, many experts say, is bad for the economy.
Theyre wrong. This timeworn economic dictum is not only outdated, it ignores changes in American society that are turning an aging population into more of an economic and social asset than ever. For evidence, take a look at the new report, The Longevity Economic Outlook by the Economist Intelligence Unit for AARP, an update of a 2013 AARP study.
Were still fighting some of the negative stereotypes about older Americans, says Debra Whitman, executive vice president and chief public policy officer at AARP. The Longevity Economy Outlook demonstrates the sheer magnitude of older Americans contributions to all of society.
Also on Forbes:
The new AARP report calculates the contribution to the U.S. economy of the 117.4 million Americans who are 50+ (35% of the population) at $8.3 trillion, or 40% of gross domestic product (GDP). Thats up from $7.1 trillion when AARP last looked in 2013. Put another way, if Americas 50+ population were its own country, its GDP would now be the worlds third largest, following the U.S. and China.
The studys projections to 2050 are equally illuminating, and Ill touch on a few striking figures in a moment. But broadly speaking, the report is a timely reminder that too much of the conversation about aging dwells on costs and burdens of older Americans, while voicing despair at the financing challenges of Social Security and Medicare. The popular image of growing old is too often pictured as years of chronic illness and mental decline as Shakespeare wrote, "sans teeth, sans eyes, sans taste, sans everything."
The Longevity Economic Outlook is just the latest analysis reframing the discussion about aging toward the economic and social possibilities created by greater longevity. The key questions such studies raise are: How can the nation best maximize the economic and social returns from longer, healthier lives? What private and public initiatives would improve the quality of work well into the retirement years, promote lifetime learning and training, boost the odds for successful late-life entrepreneurship and encourage business to imagine products and services geared toward engaged older adults?
While these questions have been floated around for years by reformers, its time to get urgent about embracing change.
Older adults are an increasingly powerful force as workers, consumers, entrepreneurs and active participants in their communities, says Paul Irving, chairman of the Milken Institute Center for the Future of Aging. But an aging population should not be feared. The rapid growth of the longevity economy offers new opportunities for innovation, employment and economic growth for people of all ages.
The recent Washington Innovation in Longevity Summit that my colleague Richard Eisenberg attended was filled with evidence of burgeoning interest by tech entrepreneurs and investors here and abroad to serve the 50+ market. Almost every week, I hear from people from another country saying: I want you to meet an entrepreneur or I have an investment fund for you to look at, said Mary Furlong, host of the summit.
Now, let me turn to the future of 50+ Americans, as the AARP report sees things:
While these gains are expected to be driven by businesses across the board, several fields in particular will do well, according to AARP, including financial services, insurance and health care.
The Economic Intelligence Unit, Bureau of Economic Analysis, REMI
Two other sets of numbers in the report are worth emphasizing and refute conventional wisdom that older Americans are a financial burden on the nation.
The Economist Intelligence Unit, Bureau of Labor Statistics, REMI
First, the tax contribution of the 50+ group is substantial. For example, the study says, the share of federal income taxes paid by the 50+ population amounted to 59% of the total income taxes paid in 2018, far above their share of the population Their portion of the federal tax total in 2050 is projected to rise to 65%. A similar dynamic holds on state and local levels.
The second figure of note is the estimated economic value of unpaid contributions. Those are things like caring for an aging parent, grandparents supporting grandchildren and volunteering. The AARP report puts the total value of this unpaid work at $745 billion in 2018.To put that in context, $745 billion is slightly more than total amount of Medicare benefits paid in 2018.
Perhaps most importantly, especially in an era when memes like OK Boomer manage to get an audience, is the theme of intergenerational benefits in the workplace and in society that runs throughout The Longevity Economic Outlook. Simply put, ideas for improving economic opportunities for older adults also boost prospects for younger generations (who, after all, will age, too).
Want the economy to grow faster than 2%? Then lets start encouraging older Americans to work longer if they can; welcome them into the workplace; treat them with respect and give them the opportunity to use their skills and experience for employers and to start their own businesses.
That will make them become an even more powerful force for rejuvenating the economy.
The rest is here:
The Longevity Economy: Gigantic And Getting Bigger - Forbes
- Inside the longevity lab that aims to help people live longer - TODAY - February 27th, 2024
- I'm a longevity expert these are the 4 supplements I take every day to fight aging - New York Post - February 27th, 2024
- The Longest Living People In the World All Abide by the 'Power 9' Rule - GQ - February 27th, 2024
- Im a longevity expert and there's six things you should do daily if you want to live longer' - Daily Record - February 27th, 2024
- Reducing the metabolic burden of rRNA synthesis promotes healthy longevity in Caenorhabditis elegans - Nature.com - February 27th, 2024
- Presidio Federal's Thad Anderson Receives WashingtonExec's Longevity Award - WashingtonExec - February 27th, 2024
- Faces of wealth, intellect and longevity, as revealed by veteran face reader - The Korea Herald - February 27th, 2024
- I'm a longevity expert here are the best foods to eat for a long and healthy life - New York Post - February 27th, 2024
- Danny Care: 'Pilates Has Helped with the Longevity of My Career' - Men's Health UK - February 27th, 2024
- Give Me This Mountain | Tips for Spiritual Longevity - Harvest.org - February 27th, 2024
- Chris Hemsworth did a 4-day fast to reverse aging. His trainer played a cheeky joke to test his willpower. - Yahoo Canada Shine On - February 27th, 2024
- Pet longevity is a spark about to turn into a wildfire - Longevity.Technology - February 27th, 2024
- The Longevity of Bitcoin's Bull Run; Polkadot and Up-and-Coming Memecoin Draw Crowds - Analytics Insight - February 27th, 2024
- 'This is weird': Experts 'shocked' by record-breaking longevity of Death Valley's phantom lake - Livescience.com - February 27th, 2024
- Understanding the Longevity of SARS-CoV-2 Antibody Responses to Infection and Vaccination - Medriva - February 27th, 2024
- Experts agree: The fasting-mimicking diet may be the key to longevity - Longevity.Technology - February 27th, 2024
- Daily habits of a longevity expert : TED Radio Hour - NPR - December 30th, 2023
- Why does fruitcake last so long? Ingredients and preparation of the dessert play into its longevity - Fox News - December 30th, 2023
- Interviews of 2023: the longevity companies - Longevity.Technology - December 30th, 2023
- Nancy Wilson Discusses Longevity of Heart & Family Drama Within the Band Ahead of New Year's Eve Show in Seattle - American Songwriter - December 30th, 2023
- What Will It Take To Make Super-Aging Not So Super-White? - Well+Good - December 30th, 2023
- Arteta on Moyes and longevity in coaching | Quotes | News - Arsenal.com - December 30th, 2023
- New Years resolution guide: 5 steps to a healthier 2024 from a longevity expert - Fox News - December 30th, 2023
- Interviews of 2023: the longevity visionaries - Longevity.Technology - December 30th, 2023
- The Top 11 Longevity Tips Of 2023, From The mindbodygreen Podcast | mindbodygreen - mindbodygreen - December 30th, 2023
- Why LeBron James' longevity is unmatched in the NBA | Good Word with Goodwill - Yahoo Sports - December 30th, 2023
- Short vs long fasts: What is the ideal length for longevity? - Longevity.Technology - December 30th, 2023
- Centenarians share the secrets to living a long, healthy life - Fox Business - December 30th, 2023
- Rob Lowe on Turning 60 Soon & His Secret to Career Longevity (Exclusive) - Extra - December 30th, 2023
- Investigating the longevity and diversity of South Asian miniature traditions - STIRworld - December 30th, 2023
- The Silent Threat of Hypochondria: Impact on Longevity and Health - Medriva - December 30th, 2023
- Longevity: What lifestyle habits could help you live to 100? - December 22nd, 2023
- Aiming for longevity - Harvard Health - December 22nd, 2023
- How Long Can We Live? - The New York Times - December 22nd, 2023
- This Was the Year of Obsessing Over Longevity - GQ - December 22nd, 2023
- Menopause Age Looms Over Women. Efforts to Prevent it Could Extend Fertility. - Bloomberg - December 22nd, 2023
- Longevity: Is exercise the key to a longer, healthier life? - Medical News Today - December 22nd, 2023
- The #1 Sign You'll Live to 100, According to Longevity Experts - Gwinnettdailypost.com - December 22nd, 2023
- Cowboys Take On Dolphins, How Longevity Factors Into Hall of Fame Election and More - The 33rd Team - December 22nd, 2023
- Longevity Hacks Are Coming to Your Gym - WSJ - The Wall Street Journal - December 22nd, 2023
- 106-year-old woman shares hobbies, habits she says helped longevity - Business Insider - December 22nd, 2023
- Tips to Improve Your Health & Longevity in the New Year - KATU - December 22nd, 2023
- NN Group gets 13bn longevity risk transfer with Prudential and Swiss Re - Reinsurance News - December 22nd, 2023
- A fresh perspective on longevity - savannahmagazine - December 22nd, 2023
- Este Lauder targets age reversal with Stanford Center on Longevity partnership - Cosmetics Business - December 22nd, 2023
- Longevity means taking a proactive approach to prevention - Longevity.Technology - December 22nd, 2023
- Decoding Longevity: Centenarian Traits and Aging Research - BNN Breaking - December 22nd, 2023
- Brain Age: The Science of Cognitive Longevity - BNN Breaking - December 22nd, 2023
- The Role of Exercise in Longevity: A Holistic Approach to Health and Fitness - Medriva - December 22nd, 2023
- Get interventions to market and to people faster and cheaper - Longevity.Technology - December 22nd, 2023
- Humans Could Live up to 150 Years, New Research Suggests - May 17th, 2023
- The ingredients for a longer life - BBC Future - May 17th, 2023
- Life Expectancy by State 2023 - World Population Review - May 17th, 2023
- About Us - Fountain Life - May 17th, 2023
- Longevity: The Keys to Slow the Aging Process - Dr. Axe - March 29th, 2023
- "I got a 20-year contract. Giannis is going to play for 20 more years" - Mike Budenholzer on the longevity of Giannis Antetokounmpo and the... - January 23rd, 2023
- "I think Nadal has been doing a great job of that in the last four or five years": McEnroe believes Murray needs to shorten points for... - January 23rd, 2023
- Jon Voight is 'blessed' to have had such a long Hollywood career - Yakima Herald-Republic - November 7th, 2022
- USD Index to sink to 103 by end-2023 amid greater certainty and longevity of Dollar downtrend Westpac - FXStreet - November 7th, 2022
- Retirement Calculator | Northwestern Mutual - October 15th, 2022
- The Longevity Investors Conference Gstaad brought together longevity experts and deep-pocketed investors - Cointelegraph - October 15th, 2022
- Do you think ageing can be reversed? Here are 12 longevity startups to watch - Sifted - October 15th, 2022
- 'SNL' Gig Was a Risk Rob Lowe Credits for His Longevity: 'I Had People in My Life Telling Me - TheWrap - October 15th, 2022
- Wellness and longevity brand Serotonin Centers to open in Nashville - Tennessean - October 15th, 2022
- Lesley Stahl on longevity of '60 Minutes': 'That clock is still there' - USA TODAY - October 15th, 2022
- 4 Recipes With Corn, Beans, and SquashThe Three Sisters Ingredients That Blue Zone Centenarians in Costa Rica Eat Every Day - Well+Good - October 15th, 2022
- The Search for a Pill That Can Help Dogsand HumansLive Longer - WIRED - October 15th, 2022
- Supontis vs Dogecoin, Which Cryptocurrency Has Greater Longevity In The Market? - Coinpedia Fintech News - October 15th, 2022
- Louisville Zoo says goodbye to one of world's oldest gorillas - Evening News and Tribune - October 15th, 2022
- 'Prolong your lifespan': 5 'cheapest' foods that can boost longevity - Express - October 15th, 2022
- FOXO Technologies Announces First Distribution Partner and Begins Product Rollout in California; Expands Executive Team With Insurance Industry Talent... - October 15th, 2022
- Timeless: USM Arts and Sciences Faculty Members Ball, Meade Cite Love for Students, Teaching as Keys to Longevity in Profession - The University of... - October 15th, 2022
- The Best Workout To Slow Aging and Promote Longevity, Science Reveals Eat This Not That - Eat This, Not That - September 4th, 2022
- Share your story of loss or survival as part of The Longevity Project series on cancer - Summit Daily - September 4th, 2022
- Drinking two cups of tea a day is linked to boosted longevity - Women's Health UK - September 4th, 2022
- How the Asphalt Industry Can Improve Pavement Longevity - For Construction Pros - September 4th, 2022
- Longevity: Playing the Long Game in Ministry - The Gospel Coalition - September 4th, 2022
- Know 3 longevity secrets of the last USSR President Mikhail Gorbachev who died at the ripe age of 91 - Times Now - September 4th, 2022
- Tyrese Maxey Lauds LeBron James, Serena Williams, And Tom Brady For Their Longevity: "What Is In The Water Bron, Serena, And TB12... - September 4th, 2022
- 'There Should be Some Reward for Longevity in This Game'-Kiwi Pacer Wants Change In Central Contracts - News18 - September 4th, 2022