In our March 2023 article Population Aging , we analysed the underlying dynamics of global aging. Two years later, demographic shifts reveal three new trends: accelerated fertility decline, intensified policy interventions, and faster-than-expected AI adoption. These developments provide crucial angles for investors to reassess silver economy opportunities. UN projections indicate the global population aged 60+ will surpass 1.4 billion by 2025 – a 20% increase from 2020.

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East Asia presents critical case studies. Japan faces the world’s most severe aging crisis, with 29.3% of its population aged 65+ in 2024. Healthcare expenditure exceeds 11% of GDP, while annual nursing care costs surpass ¥11.5 trillion in 2023. Meanwhile, South Korea’s elderly population reached 18.34% in 2024, growing at 5.09% annually since 2020. This triggered a manufacturing labor shortage of 320,000 workers. Mainland China’s 14.32% elderly cohort in 2024 reflects the lingering impact of the one-child policy. Its working-age population (15-64) plummeted from 1 billion in 2012 to 870 million by 2025, creating a "4-2-1 inverted pyramid" structure (4 grandparents : 2 parents : 1 child) that strains pension systems. Taiwan’s elderly will approach 19.48% by 2025, nearing super-aged society thresholds. Hong Kong’s 2022 elderly share stood at 22.8% – among Asia’s highest – systematically challenging health care resources and elderly services through rising dependency ratios.

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Solutions to Aging Across the World

Japan

Since 2013, Japan has gradually raised the statutory retirement age from 60 to 65. Through legislation and incentive mechanisms, the government has required and encouraged businesses to offer flexible employment opportunities, such as part-time work and remote jobs, for older workers. This allows them to continue contributing their valuable experience while maintaining their health and quality of life.

At the same time, the government is actively promoting community-based elderly care services. At the municipal level, Japan has introduced the “Community-Based Integrated Care System,” which integrates medical, nursing, preventive, living support, and elderly care facilities. A network of community nurses, care managers, volunteers, and others provides a one-stop, continuous care service for seniors.

With the help of wearable devices, remote monitoring systems, and intelligent nursing robots, Japan enables real-time monitoring of seniors’ health data at home, fall warnings, and remote rehabilitation guidance, effectively reducing the caregiving burden on families and healthcare institutions.

Europe

In Europe, there are common approaches to aging, yet significant regional differences: In Nordic countries (such as Sweden and Finland), governments provide free or low-cost home care services for older adults through a high-tax, high-welfare system. They also promote day care centers and “university of the third age”, an international movement whose aims are the education and stimulation of retired members of the community, encouraging seniors to participate in volunteer work, cultural courses, and outdoor activities. In Southern European countries like Italy and Spain, home care is more reliant on family support networks. Through tax deductions, caregiving subsidies, and community senior activity centers, they encourage children to return home or live with their elderly parents while introducing professional home care agencies to fill the gap in family care. At the EU level, to alleviate the shortage of cross-border caregivers, the EU promotes the mutual recognition of caregiving qualifications, the facilitation of work visas, and the coordination of pension systems to reduce institutional barriers for Eastern European caregivers working in Western Europe.

Mainland China

China is advancing the integration of medical and elderly care services. Public hospitals and community health service centers are establishing elderly care beds within or near their facilities, creating demonstration bases for the integration of medical and elderly care services. Simultaneously, China is implementing the “family doctor contract + dynamic management of electronic health records” model, achieving full coverage of tiered diagnosis and treatment for the elderly population. To address the challenges of rural areas with high rates of empty-nesting and limited medical resources, China is deploying telemedicine platforms and mobile care vehicles. It is also promoting the "elderly care + agriculture" cooperative model, which improves the quality of life for seniors through production labor and social interaction while ensuring basic medical and care services.

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Opportunities: Investment Directions in the Silver Economy

In light of an aging population, investors can explore following emerging business models and new market opportunities.

AI Technology and Smart Elderly Care

The decline in the cost of AI technology and IoT devices has made smart health monitoring a key method for managing elderly health. Investors may consider products and services combining smart hardware and AI technology that provide elderly people with “prevention-based” health management and life protection. Examples include wearable medical devices, caregiving robots, and chronic disease management platforms. These technologies allow real-time monitoring of the elderly’s health status, detecting abnormalities, and sending alerts to family members or healthcare institutions via cloud AI analysis. For example, the MGMove wearable health device, developed by Medical Guardian, is specifically designed for elderly users. It emphasizes ease of use and reliable medical support, offering 24/7 emergency response services (with a subscription), along with features such as medication reminders and voice calling. Smart sensors and AI algorithms developed in Finland can monitor behavioral patterns in a senior’s home, detecting risks of falls or cognitive decline. Social robots such as Pepper and Care-O-bot, piloted in several locations in Germany and the Netherlands, provide companionship and psychological comfort, alleviating labor pressure and improving the quality of life for seniors.

Rise of Elderly Care Communities

With the development of an aging society, elderly care communities have gradually become a new form of elderly care. High-end communities such as the community owned by Benesse Holdings Inc (9783.T)  in Japan, the elderly care centers created by the Pine Care Group (1989.HK) in Hong Kong, and the Shenyang Binhai Community in Shanghai focus on integrating the medical industry with elderly care servisces, effectively adding value to their assets.

Conclusion

As global aging continues to intensify, aside from high tech/chips/semi exposures, we advise investors to consider incorporating assets related to demographic shifts into their portfolios. By strategically positioning themselves in these sectors, investors can capitalize on the long-term benefits arising from this population transformation, ensuring sustained growth and profitability in the face of shifting societal trends. The aging demographic presents a unique opportunity for forward-thinking investments that align with evolving global needs.

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