Economic Impact
Older people aspire to active participation within society, and reject the dependency and institutionalisation that were the standard for most of the last century (Coleman, 1997). They are establishing themselves as consumers who control significant amounts of disposable income and as participants in the knowledge economy with valuable expertise and experience to offer.
Although most products and services are aimed at the youth market, older people typically have the money. In the UK, households with people aged over 50 spend around £250 billion annually this equates to over 40 per cent of national household spending. Households under 30 only spend around a quarter of this amount (Family Spending, 2008). However, companies that get it wrong can find it difficult to retain older customers. More than 2.7 million of people aged over 55 in the UK have stopped buying products because they found them difficult to open (UK Design Council).
Many older people in developed countries have the time, money and inclination to travel to distant and exotic places and are now the second largest group of travellers to long-haul destinations (Essex University, 2002).
Society cannot continue to support the increasing number of people who are retiring. In the past, very few people lived past the age of 65 and society could easily support them for the few years they survived beyond that point. Now, many more people are living up to 20 or 30 years longer it is not possible for the working population to support and pay for the retired population (Bernstein, 2003).
Although many older people hold the cash flow in developed economies, others live just above the poverty line. This is typically true for the ‘older old’ (those aged 75 or above). Some have to live off a state pension as their only income. In April 2009 the level of a full UK State Pension rose to £95.25 a week (www.direct.gov.uk)
People will live longer, healthier lives in general but the costs of healthcare are set to increase as more people become ill towards the end of their lives. The rise in certain conditions will be critical. The number affected by dementia in the UK, for example, is estimated to exceed 1.1 million by 2026: one in three people over 65 will end their lives with the condition. The annual cost to the UK is estimated to rise from £17bn to £40bn with more than 70 per cent of the burden falling to families and social services (The Independent, 2008).
Sources
Coleman, Roger and Harrow, Dale (1997) A Car for All – Mobility for All. DesignAge Publications, London. [Retrieved July 2009]
Family Spending (2008) A report on the 2007 Expenditure and Food Survey, p.130
UK Design Council. Opening Up: Packaging that can be Opened by Everyone. [Retrieved July 2009]
Essex University (2002) Institute for Social and Economic Research.
Bernstein, W. (2003) Retirement Calculator from Hell, Part IV: A Nation of Wal-Mart Greeters. [Retrieved July 2009]
Direct.gov.uk. How much will I Get? [Retrieved July 2009]
The Independent (2008) Care of the elderly: Britain counts the cost of rise in dementia by Nina Lakhani. [Retrieved July 2008]