Longevity boom reshapes investment outlook as ageing populations stay healthier for longer

Data cited by Legacy Healthcare, a Switzerland-based longevity-focused healthcare group, point to a sharp improvement not just in how long people live but in how well they age. An International Monetary Fund report shows that a 70-year-old in 2022 had the same cognitive capacity as a 53-year-old in 2000, a shift that is changing expectations about work, retirement and productivity later in life.

“The concept of longevity has evolved from a mere statistical measure to a profound economic and social phenomenon,” said Saad Harti, chief executive of Legacy Healthcare. “This is not just about living longer, it is about living better.”

Global life expectancy has risen sharply over the past century. Around 70 years ago, the average life expectancy was about 47 years. A child born in 2023 can expect to live to 73, reflecting advances in nutrition, medicine, technology and living standards.

That improvement is now feeding through into demographic change. By 2050, people aged over 65 are expected to account for almost 17% of the global population, up from about 10% in 2021. In parts of Asia the shift is even more pronounced. Hong Kong is projected to have more than 40% of its population aged over 65 by mid-century.

For investors, the ageing of populations has traditionally been framed as a fiscal burden, linked to rising healthcare costs and pressure on pension systems. Recent data suggest a more complex picture.

The International Monetary Fund has highlighted improvements in older-age cognition and functional health, suggesting that older workers may be able to remain productive for longer than previous generations. That has implications for labour markets at a time when many economies face shrinking working-age populations.

At the same time, the financial challenges of longer lives are becoming clearer. The World Economic Forum has projected a global pension savings gap of about $400tn by 2050. Surveys cited in the longevity research show that nearly half of individuals believe their retirement savings are not on track.

This tension between healthier ageing and financial strain is driving interest in sectors that can extend what researchers describe as “health span”, the period of life spent in good health, rather than simply prolonging lifespan.

Healthcare remains at the centre of that opportunity. The global healthcare market is forecast to reach about $2.2tn by 2030, with growth areas including treatments for age-related conditions, therapies targeting obesity and chronic disease, and drugs designed to improve metabolic health. Analysts estimate that medicines in the GLP-1 class alone could represent a $200bn annual market.

Beyond medicine, ageing populations are reshaping consumer demand. Companies focused on specialised nutrition, supplements, anti-ageing technologies, healthcare devices and leisure experiences tailored to active older consumers are attracting increasing attention from investors.

Technology is also emerging as a critical enabler of the longevity shift. Artificial intelligence is being applied across healthcare systems, from drug discovery and molecule selection to diagnostics and personalised treatment. In the workplace, automation and AI-driven tools are being deployed to offset labour shortages and support employees across a wider age range.

As workforces age and shrink in many developed economies, businesses are investing in enterprise software, decision-support systems and process optimisation to maintain productivity. The assumption that older workers are necessarily less adaptable to technology is increasingly being challenged by data on cognitive health and lifelong learning.

For investment groups focused on long-term themes, longevity is being framed as a structural change rather than a passing trend. Julie Meyer, managing partner at Viva Partners, said the longevity shift was “reshaping global economics and investment landscapes”, creating opportunities that cut across sectors.

The most attractive strategies, investors argue, will focus on companies that improve quality of life in later years, enhance productivity across the life course and address the social and financial pressures created by demographic change.

While the scale of the transition poses challenges for governments, employers and pension systems, proponents of the longevity thesis argue that it also offers the chance to rethink how economies value age, experience and health.

As one research note cited in the briefing put it, the future created by longer lives “is not just longer; it is brighter, richer and more connected than ever before”.