The Orphea case shone a harsh light on the elderly economy a few months ago, nicknamed “silver industry” or “sparing white hairin good French. The scandalous treatment of some of Ehpad’s residents has stirred emotions among the French, a testament to the importance of aging issues.
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Fortunately, the Orpea case does not represent an industry that has seen continuous growth for several years and many years to come. Its structure is now complete, with multiple players and a leading event, the Silver Economy Expo, which will open its doors this Tuesday at the Parc des Expositions in Versailles, Paris. An opportunity to go back to some numbers on the performance, markets and challenges of the senior citizen economy.
One in three French people will turn sixty by 2050
“France is an aging country on the old continentRecently, Maxim Sbayhi, the author of the book, announced to Figaro Live.Great old age» published by L’Observatoire. And for good reason. In 2050, one in three French people will be over 60, according to INSEE, while the elderly already make up 20.5% of the population today. A sign of this rapid aging, the proportion of people over 60 has increased by 4.7 points in just twenty years.
Insee statistics also teach us that the elderly are less affected by the scourge of poverty. With an average annual income of 25,530 euros, 8.6% of them live below the poverty line, compared to 14.8% of the general population. It should be noted that the standard of living deteriorates with age. People aged 80 and over have €156 less per month than those aged 75-79, €200 less than those aged 70-74 and €244 less than those aged 65-69.
A soon to be €109 billion industry
Much more than the market “Silver Economy” constitutes a whole sector that unites a variety of sectors that are divided into markets. In a recent study, research institute Xerfi divides the industry into 22 markets and five sectors. In total, experts estimate that the aging economy will amount to 109 billion euros in 2026:A steady growth rate of around 3% per annum from 2022“.
This huge figure is explained by the arrival of “the age of weakness“The first members of the abundant post-war generation established at the age of 75”baby boomers“. Many people born between 1946 and 1975 are also dynamic, curious, technophile, hedonist. so many characteristics that make them important economic agents. “It’s done with seeing old age and retirement as the anteroom of deathexclaims Damien Cacaret, president of Silver Valley, the industry’s representative body.
7 billion euros suppliers per year
However, it would be a mistake to reduce the elderly to a mere contingent of consumers. Damien Cacaret explains that he plays “social buffer,” which he describes as “essential“. He wants proof that more than one in two seniors provide financial assistance to their children or grandchildren, according to a study by Silver Valley, an organization he directs. For 14% of seniors, this help is even regular. “The order of magnitude of these informal financial flows is about 7 billion euros per year– says Damien Cacare, adding that the average amount of this regular financial assistance is set at 200 euros per month.
Such sums are not insignificant, especially in an economic context marked by rising prices. And their recognition ignores help that isn’t strictly financial, but still allows for savings. France Strategy, for example, reports that grandparents contributed 23 million hours per week in 2010, the equivalent of 650,000 full-time jobs.
Aging well at home costs €14,000 a year
Helping loved ones does not prevent you from taking care of yourself, especially over the age of 65. The latest edition of the Ratraite.com/Silver Alliance barometer shows that aging well at home requires a substantial budget of around €14,000 a year over thirty years, or €1,164 every month after deducting state aid.
To arrive at this figure, the institutes calculate the price of 25 goods and services, ranging from domestic help, equipment or transportation costs, mutual insurance. This year, the cost of aging well at home has increased by 6.83% compared to 2021, which is more in line with inflation (+6.2% in October).
More than one in two seniors is not saving to finance their old age
The value of aging well is high. However, Silver Valley studies “France for seniorsreveals that 54% of over-55s have not saved to fund their age. “We are looking at a paradox. seniors are liquidity poor but wealth richHowever, notes Damien Cacaret, who notes that more than 70% of people over 55 own a home. According to him, therefore, it is necessary to improve the mechanisms of monetization of inheritance, starting from the lifetime annuity.
However, 46% of seniors are saving to prepare for retirement, a very high proportion. The success of the Retirement Savings Plan (PER) is proof of this. Since its creation barely three years ago, 6.2 million French people have already subscribed to it, worth a total of €70 billion.
1.3 active contributors for 1 pensioner in 2070
It is difficult to talk about the economy of the elderly without mentioning the pension system. Beyond the partisan debates and a hundred reform projects, one indicator gives a full appreciation of the difficulties society as a whole will soon have to face: the active investor/retiree ratio. In 2070, INSEE and the Pension Orientation Council (COR) predict that it will be 1.3 workers for 1 pensioner. In other words, it will take about four workers to finance the pension of three pensioners. For comparison, let’s note that in 2002 the ratio reached 2 to 1. contributions from four workers funded eight pensions.
Source: Le Figaro
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.