For years, economists and government officials have whispered the same warning: the “Silver Tsunami” is coming. We’ve been taught to see the growing number of older people around the world as a problem that will hurt healthcare systems, drain pension funds, and slow down economic growth. But what if this story is wrong at its core?
Recent insights from industry leaders, such as the Global Coalition on Aging (GCOA) and prominent healthcare innovators, indicate that we are examining the data through an incorrect perspective. Aging in society is not a disaster; in fact, it is one of the biggest economic and social opportunities of the 21st century. Stop getting ready for a crisis and start building the Silver Economy. You can read about unlocking the hidden opportunity of societal aging in the original Novartis feature to learn more about this point of view.
Changing the story: From burden to asset
At the heart of this change in thinking is changing what it means to get older. The conventional perspective regards aging as a phase of unavoidable deterioration and reliance. But new medical and lifestyle changes are not only adding years to our lives, but also years to our health span, which is the number of years we spend in good health.
When we put money into healthy aging, older people go from being passive recipients of care to active drivers of economic growth. They stay in the workforce longer, which gives intergenerational teams stability and wisdom. They become powerful consumers, which drives up demand for new industries like wellness tourism and technology that is easy for older people to use.
Japan is a great example. Japan has had to change more quickly than most countries because it has the oldest population in the world. The country hasn’t fallen apart because of its demographics; instead, it has become a hotbed of new ideas. It now sells more adult diapers than baby diapers, which is a funny statistic but also a sign of a big change in the market. Japan is showing that an aging population creates new markets, needs, and ways for businesses to make money if they can adapt.
The Business Case for “Functional Ability”
The “hidden opportunity” found in the study of social trends is based on the idea of functional ability. The goal of the economy shouldn’t just be to keep people alive; it should also be to keep them functional, independent, and involved.
A 75-year-old who takes good care of their heart health doesn’t just stay out of the hospital (which saves the healthcare system money); they probably also keep volunteering, traveling, mentoring younger workers, or taking care of their grandchildren. This is the Longevity Dividend.
Companies that see this dividend are already changing their plans. We are moving away from designing things for older people (like medical devices and emergency alarms) and toward designing things with older people (like smart homes that are easy to get to, wearable fitness tech, and platforms for lifelong learning). The market isn’t just for care; it’s for living.
The “Engage with Heart” Model for Decentralizing Care
Moving from hospital-centered care to community-based health is one of the most useful ways to put this philosophy into action. We can’t wait for older people to get sick and go to the emergency room if we want them to do well. We have to go to where they live.
The “Engage with Heart” project in Baltimore, which is a partnership between Novartis and the GCOA, is a great example of a case study. The program knew that in many underserved areas, people don’t trust the traditional medical system.
Instead of asking seniors to go to a clinic, the program sent “Community Health Ambassadors,” who were often older adults themselves, to trusted places in the community like churches and community centers. These ambassadors did health education and screenings for heart disease.
There were two results. First, it helped people get better health by finding risks like high blood pressure early. But second, and maybe more importantly, it gave the ambassadors a job that mattered and a sense of purpose. It made the older people part of the solution by using their trust in each other to connect the healthcare systems with the community.
The Importance of Radical Collaboration
Because the Silver Economy is so complicated, no one group can figure it out on their own. It needs a “cross-sector” approach that is very different from the siloed strategies of the past.
Pharmaceutical companies can’t just sell pills; they need to work with tech companies to keep an eye on patients’ health at home. Governments can’t just give out pensions; they need to work with city planners to make cities that are “age-friendly” by improving public transportation and making housing more accessible.
The collaboration between Novartis and the GCOA illustrates this. They are making changes to the system that affect everyone by combining corporate resources (like research and development and money) with policy knowledge and networks in the local community.
Things that business leaders should remember
If you’re an entrepreneur, investor, or executive reading this, the Silver Economy gives you three clear strategic imperatives:
- Come up with new ideas for health span, not just life span: There will be a huge demand for products and services that help people stay independent, like mobility aids that look like high-end furniture and nutrition plans for brain health.
- Think about your workers again: If you keep older workers, the shrinking labor pool is a myth. Flexible hours, mentorship roles, and ergonomic workspaces can help you tap into a wealth of experience that your competitors are missing out on.
- Build Trust Through Community: The “Engage with Heart” example shows that the best way to reach older people is through trusted middlemen and being there in person, not through ads from far away companies.
Final thoughts
The phrase “Silver Tsunami” means destruction. A better metaphor might be a “Silver Reservoir,” which is a huge, deep pool of potential that we haven’t fully tapped into yet.
We don’t just solve an economic problem by focusing on functional ability and healthy longevity. We make a society where our future selves are not problems, but strengths. The chance is right in front of us; we just need to be able to see it.