A grayer world is putting retirement money in motion
Morgan Stanley strategists say longer lives and lower birth rates are reshaping spending, care, work and wealth planning.
By Sal Moretti · Money Reporter
3 min read
The global population is aging fast, and Morgan Stanley Wealth Management strategists Ellen Zentner and Dan Hunt say that shift is becoming a serious investment theme.
In a MarketWatch opinion column, Zentner, the firm's chief economic strategist and global head of thematic and macroeconomic investing, and Hunt, a senior investment strategist, argued that longevity is no longer a side note for markets. They said longer lifespans and falling birth rates are changing how households spend, work, receive care and plan for retirement.
United Nations population estimates cited by the strategists show that about one in six people worldwide is expected to be 65 or older by 2050. That compares with about one in 10 today.
The forces behind the shift are familiar, but powerful. World Health Organization data cited in the column put global life expectancy at about 73 years, while Centers for Disease Control and Prevention figures put U.S. life expectancy at 79 years. Zentner and Hunt pointed to better healthcare, sanitation and access to nutrition in developed countries as factors behind longer lives.
Birth rates are moving the other way. World Bank data cited by the strategists show fertility rates have declined for decades, with many countries below the level needed to keep populations stable. Fewer births, paired with longer lives, mean older adults will make up a larger share of the population.
Older consumers hold major economic clout
In the U.S., adults 55 and older control roughly three-quarters of household wealth, according to Federal Reserve data cited by Zentner and Hunt. The strategists said that wealth has been helped by rising home values and bigger retirement accounts.
The same age group accounts for about 40% of disposable income and roughly 30% of consumer spending, according to the column. That makes older households a major force in the economy, especially for companies built around care, housing, work and financial planning.
Zentner and Hunt said one area to watch is “aging in place,” as many older adults prefer to remain in their homes as long as possible. They pointed to smart-home technology, delivery services and telemedicine as services that can help seniors stay connected and supported at home.
Senior housing is another likely beneficiary, according to the strategists. They said a larger older population could lift demand for assisted-living facilities, independent senior communities and skilled-nursing care.
Healthcare technology is also on the list. Zentner and Hunt cited remote patient monitoring, AI-assisted diagnostics, wearable devices and personalized therapies as tools that may move care toward earlier detection and prevention. They said companies focused on home-based care, precision medicine and age-related disease management could see steady demand as older adults manage chronic conditions over longer lives.
Work, wealth and the retirement squeeze
The strategists also said more older adults are working past traditional retirement ages, whether for income, mental engagement or social connection. They said businesses tied to flexible work, gig jobs and retraining may benefit as careers stretch longer.
Wealth transfer is another piece of the story. Zentner and Hunt said trillions of dollars are expected to move over the next two decades, first to longer-living spouses, often women, and later to heirs. They said that could increase demand for financial advice and retirement products tailored to longer lifespans.
For individual investors, the same longevity trend brings risk. The strategists said longer retirements can expose savings to market swings, inflation, taxes and healthcare costs for more years than many plans expect.
They suggested several ways to reduce the risk of outliving savings: align investments with income needs, manage taxes through withdrawal sequencing and asset placement, consider delaying Social Security, and look at annuities or long-term-care insurance as added safeguards.
The bottom line from Zentner and Hunt: a world with more older people is already changing where money is spent, where care is delivered and how retirement plans are built.
This story draws on original reporting from MarketWatch.