Forever Young? How Singapore is Shaping up for the Longevity Economy
A commentary by David Black, Founder and CEO, Blackbox Research
It’s easy to laugh at the “OK, Boomer” catchphrase that’s been popularised in thousands of memes in recent times. But as cruel as it may sound to people advancing in years, they might just have the last laugh.
According to data from Brookings, globally, people over the age of 65 are projected to spend almost $US15 trillion per year by 2030 - up from $US8.7 trillion in 2020. And projections suggest this exponential growth in silver spending is going to be fastest in Asia.
Here in Singapore, one in four citizens will be over 65 by the year 2030, a 26% increase from 2023. While much of the commentary around the aging population is often doom and gloom due to the pressures it places on the Singapore workforce and public health system, it is still only one side of the story. Size invariably brings power.
“One in four citizens in Singapore will be over 65 by 2030.”
More and more, we are seeing attention being given to developing products and services that cater specifically to an older, wealthier and healthier aged population.
Recent Blackbox polling in Singapore reveals that:
87% of Singaporeans believe that the aging demographic shift will create important financial opportunities for businesses that choose to invest in products and services that target older people; and
71% think the Singapore Government is already doing a good or excellent job in developing new and improved social and community services, products and initiatives that specifically cater to the local aging population.
So there already appears to be buy-in for greater investment into the aging economy and a strong sense that the Singapore Government is making progress with respect to the policies, services and infrastructure it offers.
But a key question remains: Are businesses actually listening and responding to the needs of this segment? Or are they just guessing?
As is often the case, asking the people themselves provides insight. Our data from SensingSG (Feb 2024) shows that the areas over-60s would most like to see better products and services that cater specifically to their needs, can differ markedly from what younger people think.
The five areas currently prioritised by the 60+ segment are:
1. Health and wellness (78%)
2. Transportation (54%)
3. Housing (50%)
4. Food and nutrition (48%)
5. Social/community services (48%)
In contrast, those over 60 are much less likely to be looking for age-tailored consumer and tech goods, which many companies are putting a lot of effort into. And despite the efforts being put into workforce retraining for older people by the Government, only 14% currently express interest in age-tailored education and training. This result highlights the challenge for the Government and, partially, why SkillsFuture credits have been underutilized.
“More and improved health and wellness services and products are seen as the no.1 priority by over-60s in Singapore.”
When it comes to what older people are prepared to spend their money on, the findings are also interesting. The top five areas where those over 60 say they are prepared to spend money on for specialised aged products/services are:
1. Health and wellness (73%)
2. Food and nutrition (61%)
3. Transport (41%)
4. Travel and leisure (34%)
5. Housing (28%)
So the next time you happen to glance at another article about the impending aging population timebomb, it is worth looking at the other side of the coin. The potential to both cater to- and develop better products and services for the aged represents an opportunity for Governments, businesses and the community alike. Japan is living proof of this.
Perhaps you will think twice before you dismiss a senior person with an “Ok Boomer” next time - they can easily take their silver dollar to a rival next door who treats them with a bit more interest and respect.
