One obvious implication of changing demographics is heightened demand for healthcare services and increased spend from both private and public sources in the US and other developed nations. This, the firm argues, will benefit both product manufacturers and service providers in the healthcare space, with the biggest winners being companies which produce pharmaceuticals targeted at diseases largely suffered by the elderly.

The supportive factors for the healthcare industry presented by increased longevity are however far from the whole story, Fidelity points out, the trend also being positive for a number of areas in financial services. The firm notes that ageing populations tend to show more interest in retirement-related products and services making asset managers, financial advisory firms and insurance firms which have a strong presence in the retirement and pre-retirement markets a good bet.

According to the Department of Work and Pensions, over ten million people in the UK are now expected to live to become centenarians, and while the potential benefits that this kind of demographic shift holds for healthcare and financial services companies may be obvious, Fidelity notes that the investment opportunities tapping into the ageing population trend are far more diffuse.

Looking at other opportunities presented by the “silver economy”, the firm argues that investors should also consider that people are increasingly active in old age now and many wish to continue to travel for leisure for example. With this in mind the firm foresees the cruise liner market building further on its already successful track record of targeting the older generation. Another tip from the firm is that the future will likely bring increased demand for companies that specialise in home and personal security technology, based on the view that older people tend to be more cautious and security conscious.

“Population ageing is one of the most important demographic trends in many Western countries and the developed world more generally. This is clearly having some negative economic results in terms of reduced working age populations and increased financial burdens for national governments. However, the increasing numbers of older people, the so-called silver economy, also offers some clear opportunities for investors,” said Tom Stevenson, investment director.