Study on Aging Economy

Introduction

The Study on Aging Economy is based on a conception of the elderly population as a source of opportunities to stimulate business activity and economic development. Taking advantage of these opportunities requires knowledge of the distinctive characteristics and behavioural habits of this population that have a direct bearing on their economic impact. Therefore, the main objective of this study is to provide an updated and statistically rigorous overview of the elderly segment, known as the 'older' or 'silver' segment, within the Spanish population. Through empirical work based on a survey of the Spanish population, a detailed profile of this segment is obtained and analysed comparatively with the rest of the population. The construction of this profile is based on six key axes to assess the impact and economic potential of this population group: adoption of new technologies, shopping habits, travel and leisure experience, entrepreneurship, quality of life, and satisfaction with old age.

This report has been carried out thanks to the initiative of the General Foundation of the University of Salamanca (FGUSAL) in the framework of the project "Cross-border Space on Ageing" which is part of the Operational Programme for Cross-border Cooperation, Spain-Portugal 2007-2013 (POCTEP), of the European Regional Development Fund (ERDF).

Project description

The world's population is aging rapidly. In 2012 there were 810 million people aged 60 and over, constituting 11.5% of the world's population. This number is projected to reach 1 billion in less than ten years and will more than double by 2050, reaching 22% of the world's population. In 2050, there will be nearly 400 million people aged 80 and over in the world, and 3.2 million centenarians. While today only Japan's population exceeds 30% of people aged 60 and over, it is expected that by 2050 at least 64 countries will exceed this threshold.

Spain shows a similar demographic trend. In 2012 there were almost 10.5 million people aged 60 or over, accounting for 22.7% of the country's population. Future estimates foresee a significant increase in this group to 17.5 million around 2050, with their relative importance expected to reach 42%. At that time there could be 6.5 million Spaniards over 80 years of age, compared to 2.4 million in 2012. Similarly, there would be more than 75,000 centenarians compared with just over 8,000 in 2012.

There are two main reasons behind this population ageing. On the one hand, a considerable increase in life expectancy, which is undoubtedly a success story of today's society. Medical advances and improvements in living conditions and habits have led to greater longevity. In Spain, life expectancy has increased by 40 years over the last century. On the other hand, there has been a decline in the birth rate. In Spain, the birth rate has fallen by less than a third in the last century. In addition, it should be noted that ageing is accentuated in some countries and regions due to migratory flows.

The phenomenon of population ageing has received a great deal of attention because of the social challenges it brings. In particular, the economic impact has attracted special interest. However, from this economic perspective, population ageing has generally been seen as a threat: it implies a relative increase in the inactive population and threatens the viability of public pension, health and social service systems.

Only recently has the economic potential of older people and their attractiveness for generating opportunities to stimulate economic activity begun to be appreciated. They are an experienced population with significant assets and resources accumulated over a working life. They also have an increasingly positive and active attitude towards this phase of the life cycle, which is no longer conceived as a phase of retirement but as a phase of change in which healthy habits, making the most of time, leisure and entertainment activities, or training and learning take precedence. They also have specific needs derived both from the physical and psychological limitations that accompany ageing and from the generational context in which they have lived. All this makes them an economically differentiated and proactive population group, with great opportunities for innovation, entrepreneurship and the development of new job profiles. Some sectors that may particularly benefit from this increase in the elderly population are: cosmetics and fashion, tourism, smart homes and home automation for independent living, health and wellbeing, security, culture, training and skills development, entertainment and leisure, personal and autonomous transport, and financial and banking services.

This study starts from the latter conception of the older population as a source of opportunities to stimulate entrepreneurial activity and economic development. Taking advantage of these opportunities requires knowledge of the distinctive characteristics and behavioural habits of this population that have a direct bearing on their economic impact. Therefore, the main objective of this study is to provide an updated and statistically rigorous overview of this older segment of the Spanish population, known as the 'elderly' or 'silver' segment. Through empirical work based on a survey of the Spanish population, a detailed profile of this segment is obtained and analysed comparatively with the rest of the population. The construction of this profile is based on six key axes to assess the impact and economic potential of this population group: adoption of new technologies, shopping habits, travel and leisure experience, entrepreneurship, quality of life, and satisfaction with old age.

The team that carried out this study is:

Pablo A. Muñoz Gallego
Professor of Marketing and Market Research. University of Salamanca

Óscar González Benito
Professor of Marketing and Market Research. University of Salamanca

Álvaro Garrido MorgadoProfessor of Marketing and Market Research. University of Salamanca

Methodology

This study aims to analyse the characteristics and behavioural habits of the 'older' or 'silver' segment in relation to its economic and commercial impact and potential. It attempts to delve deeper into the distinctive aspects of this segment, and therefore takes a comparative approach with the rest of the population.

The study is based on primary information collected through a survey, i.e. the administration of a questionnaire by interview to a sample of individuals from the population of interest. The population of interest - the 'elderly' segment - is defined as the Spanish population aged 60 and over. For comparative purposes, information is collected from the rest of the population - the control population - defined as the Spanish population aged 25 to 59.

The universe or population of interest, the 'elderly' segment, consisted of 9,986,393 individuals according to INE data in 2015, based on the 2013 Register. A sample size of 950 individuals was established, which implies a maximum random error in the estimation of a proportion of ±3.18% at the 95% confidence level (assuming simple random sampling and the worst case heterogeneity).

A quota sampling method was applied, i.e. selecting individuals by convenience but taking into account base quotas established according to some known geodemographic variables about the population. On the one hand, indicative cross quotas were established proportional to the population size considering gender (male / female) and age bracket (60-65 / 66-70 / 71-75 / over 75). On the other hand, indicative cross quotas were established proportional to the population size considering the Autonomous Community and habitat (population of the municipality of residence <2 thousand / 2-10 thousand / 10-50 thousand / 50-500 thousand / more than 500 thousand).

You can consult more information on the established quotas and sample sizes in the document.

Sections

New technologies
New information technologies have found their way into all the activities we carry out on a daily basis, bringing about a major change in the way we relate to others, the availability of information, our decision-making about what goods or services to buy and how to buy them. Have the elderly taken part in this change? It is important to analyse the degree of adoption of information technologies by this group, the use they make of them and the differences that can be seen in relation to the young and mature strata of the population.

Purchasing habits
Knowing and understanding the buying habits of consumers is a key issue in order to have a competitive business fabric. Despite the fact that the elderly segment represents an important and growing market, it still does not receive the necessary attention from companies. It is interesting to analyse their behaviour and habits when purchasing products, such as in which commercial formats they do so, how much time they spend or, in general, to which aspects of the product they attach greater importance.

Travel and leisure
The senior segment is of increasing interest to the travel and leisure industry, both because of the volume of business it represents and because of the ease of making more regular bookings throughout the year as they have time that is not conditioned by work and holiday periods. Understanding the segment requires knowing their preferences and the criteria they use to make their decisions on tourist destinations and contracted accommodation.

Entrepreneurship
Older people have valuable work experience and, in many cases, a predisposition to actively participate in social organisations and also support entrepreneurial initiatives, which can result in both greater social and personal well-being for the elderly.

Quality of life
Obviously, quality of life is associated with the health and economic situation of the person, but there are other aspects to take into account, such as the free time available, social relations or even family support. In this sense, it is interesting to analyse comparatively the quality of life available to our elderly, taking into account not only their purchasing power but also their autonomy and personal relationships.

Satisfaction
A person's satisfaction is linked to aspects such as health, economy, etc. But there are also other aspects that must be valued, such as the achievement of achievements or vital objectives, which directly influence whether or not a person feels happy. In this sense, it is necessary to analyse the degree of satisfaction and happiness that the elderly segment has in order to try to find out what aspects it depends on and how it can be increased.

Observatory

A study of these characteristics deserves that all its sections can be analysed in their own space, in a visual and attractive way, with the aim of generating a context that favours rigorous analysis. This space is the Observatory - Economics of Ageing section, where the following content can be found in each of the sections:

At a glance: interactive and visually attractive infographics in which to analyse the most relevant data in each section, and which fulfil the objective of disseminating rigorously contrasted ideas and concepts that help to portray the elderly in a more faithful way and to banish myths.
Data: in this section you will find the analysis of each section carried out by the authors of the study, as well as all the data tables so that they can be used as a basis for conclusions and new studies on the profile of older people.

The presentation of the Study on Aging Economy took place in Madrid on 25 November 2015 at the Casa del Lector in the Matadero.

It was attended by:

Óscar González Benito. Director of the General Foundation of the University of Salamanca. Professor of Marketing and Market Research.
Pablo Antonio Muñoz Gallego. Chair in Marketing and Market Research at the University of Salamanca.
José Antonio Herce. Professor of Economics and Associate Director of Analistas Financieros Internacionales.
José Luis de Miguel. Coordinator of Programmes and Strategy at Fundación General CSIC.
Toni Segarra. Creative Director and partner of SCPF

In Salamanca, a press conference was held on 1 December 2015, which was attended by:

Óscar González Benito. Director of the General Foundation of the University of Salamanca. Professor of Marketing and Market Research.
Pablo Antonio Muñoz Gallego. Chair in Marketing and Market Research at the University of Salamanca.

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