Older adults contributed $45 trillion to the global gross domestic product in 2020, according to AARP’s recently released Global Longevity Economy Outlook. That’s approximately three times the combined revenue of the 100 highest-earning companies that year, the organization reported. And the amount is expected to grow dramatically in the coming decades.
The data show that adults aged 50 or more years made up just shy of a quarter (24%) of the world’s population in 2020, yet they accounted for about 34% of the global GDP. By the end of the decade, this group is expected to contribute an inflation-adjusted $65 trillion, or 36% of global GDP, and the contribution is expected to grow to $118 trillion, or 39% of global GDP, by 2050.
In 2020, the 50-plus population was responsible for approximately half or more of global spending in the five largest consumer categories: health (60%); miscellaneous goods and services, which include professional and financial services (52%); housing and utilities (51%); food and beverages (49%); and transportation (49%), according to the report.
“Older adults are consumers, workers, caregivers, volunteers and serve other critical roles in our societies. Their contributions spur economic growth that benefits all generations, as well as communities and businesses,” Jean Accius, senior vice president of global thought leadership at AARP, said in a statement. “Policymakers and business leaders can benefit more fully from the global longevity economy by combatting age discrimination, encouraging multigenerational workforces, and tailoring products and services to meet the needs of a rapidly aging population.”
Through its spending habits, the 50+ cohort supported a third of the world’s jobs in 2020, or just more than 1 billion jobs, generating $23 trillion in labor income. That number is expected to increase to 1.5 billion jobs, and the impact on labor income is anticipated to more than double to $53 trillion, according to the report.
“The economic contribution of older populations is a global phenomenon, and their expansion in one economy or region creates opportunities in others in terms of exports and job creation,” the authors noted.
Countries should be adopting longevity-focused policies “and making investments that maximize economic engagement with the 50-plus population, both domestically and globally,” they said.
