Forever young: investment opportunities in supporting an ageing population

Ageing populations have prompted fruitful research in sectors ranging from pharmaceuticals and medical equipment to glasses and hearing aids.

Active senior couple runners jogging outdoors on sandy beach by sea in early morning
(Image credit: Getty Images)

The demographics of developed countries are undergoing significant change. The percentage of the population aged over 65 is on the rise. The figure is already 29% for Japan, 24.5% for Italy, 19% for the UK and 16% for the US. The UK percentage is up from 11% in 1951 and projected to rise to 25% by 2050. The proportion of those aged 80 or over is set to double by 2063 to 6.3 million. Globally, there are expected to be 2.1 billion people over 60 by 2050.

The number of over-65s in G7 countries is increasing because of health education (there are fewer smokers, for instance), preventative healthcare, higher living standards, better diets, better public health and improved treatments for diseases and afflictions of old age. There has been a steady decrease in deaths from cancer and heart disease. Average life expectancy in G7 countries varies from 79.5 years for the US to 84.9 for Japan. But these average figures hide big differences between well-educated people and manual workers. A Spanish study found a ten-year difference between the two.

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Dr Mike Tubbs

Highly qualified (BSc PhD CPhys FInstP MIoD) expert in R&D management, business improvement and investment analysis, Dr Mike Tubbs worked for decades on the 'inside' of corporate giants such as Xerox, Battelle and Lucas. Working in the research and development departments, he learnt what became the key to his investing; knowledge which gave him a unique perspective on the stock markets.

Dr Tubbs went on to create the R&D Scorecard which was presented annually to the Department of Trade & Industry and the European Commission. It was a guide for European businesses on how to improve prospects using correctly applied research and development. He has been a contributor to MoneyWeek for many years, with a particular focus on R&D-driven growth companies.