The Orpea affair shed a harsh light on the economy of seniors a few months ago, nicknamed “
silver economy
” or “
economy of white hair
” in good French.
The scandalous treatment reserved for certain residents of Ehpad has aroused the emotion of the French, proof of the importance that the issues related to aging hold in their eyes.
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Fortunately, the Orpea case is not representative of a sector which has recorded continuous growth for several years and for many more years.
Its structuring is now complete, with many players and a flagship event: Silver Economy Expo, which opens its doors this Tuesday at the Parc des Expositions de la Porte de Versailles, in Paris.
The opportunity to come back to a few figures on the activities, markets and challenges of the senior citizens' economy.
One in three French people will be in their sixties by 2050
"
France is a country that is aging in an old continent
", recently declared to Figaro Live Maxime Sbaihi, author of the book "
The great ageing
" published by L'Observatoire.
And for good reason.
In 2050, one in three French people will be over 60, according to INSEE, while seniors already represent 20.5% of the population today.
Sign of this aging at high speed, the share of over 60s has increased by 4.7 points in just twenty years.
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Insee statistics also teach us that seniors 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% in the population as a whole.
It should be noted that the standard of living deteriorates as age advances.
People aged 80 or over have 156 euros less per month than 75-79 year olds, 200 euros less than 70-74 year olds and 244 euros less than 65-69 year olds.
A sector that will soon weigh 109 billion euros
Much more than a market, the
“silver economy”
constitutes an entire sector, bringing together a diversity of sectors, themselves broken down into markets.
In a recent study, the Xerfi research institute breaks down the sector into 22 markets and five sectors.
In total, experts estimate that the aging economy will weigh 109 billion euros in 2026, with an “
unchanged growth rate of around 3% per year from 2022
”.
This massive figure is explained by the arrival in
the "age of fragility
", fixed at 75 years, of the first members of the abundant post-war generation, the "
baby boomers
".
Many people born between 1946 and 1975 are also dynamic, curious, technophile, hedonistic: so many characteristics that make them important economic agents.
"It's over the conception of old age and retirement as an antechamber of death
," exclaims Damien Cacaret, president of Silver Valley, the sector's representative body.
Providers of 7 billion euros per year
However, it would be a mistake to reduce seniors to a mere contingent of consumers.
Damien Cacaret explains that he plays a role of "
social shock absorber
" which he describes as "
indispensable
".
He wants proof that more than one in two seniors provide financial assistance to their children or grandchildren, according to a study conducted by Silver Valley, the organization he chairs.
For 14% of seniors, this help is even regular.
"
The order of magnitude of these informal financial flows is around 7 billion euros per year
", specifies Damien Cacaret, adding that the average amount of this regular financial aid is 200 euros per month.
Read alsoThe explosion in the number of dependent seniors, a new time bomb for the State
Such amounts are not negligible, especially in an economic context marked by rising prices.
And their recognition ignores aid that is not strictly speaking financial but still allows savings to be made.
France Strategy reports, for example, that grandparents provided 23 million hours of weekly care in 2010, the equivalent of 650,000 full-time jobs.
Aging well at home costs 14,000 euros per year
Helping loved ones does not prevent you from having to take care of yourself, especially over the age of 65.
The latest edition of the Ratraite.com/Silver Alliance barometer reveals that aging well at home requires allocating a substantial budget of nearly 14,000 euros per year over thirty years, or 1,164 euros each month, after deduction of public aid.
To arrive at this figure, the institutes calculate the price of 25 products and services, starting with home help, equipment or transport costs, mutual insurance.
This year, the cost of aging well at home is up 6.83% compared to 2021, more in line with inflation (+6.2% in October).
More than one in two seniors have not saved to finance their aging
The cost of aging well is high.
However, the Silver Valley study on “
La France des seniors
” reveals that 54% of those over 55 have not saved to finance their advancing age.
"
We observe a paradox: seniors are poor in liquidity, but rich in heritage
", notes however Damien Cacaret, who recalls that more than 70% of over 55s own their homes.
According to him, it is therefore necessary to improve the mechanisms of monetization of the heritage, starting with the life annuity.
Still, 46% of seniors save to prepare for aging, a very high proportion.
The success of the Retirement Savings Plan (PER) bears witness to this.
After its creation barely three years ago, 6.2 million French people have already subscribed to it for an outstanding amount of 70 billion euros in total.
1.3 active contributors for 1 retiree in 2070
It is difficult to talk about the economy of seniors without mentioning the pension system.
Beyond the partisan debates and the hundred reform projects, a single indicator makes it possible to fully appreciate the difficulties that society as a whole will soon have to face: the active contributor/retired ratio.
In 2070, INSEE and the Retirement Orientation Council (COR) predict that it will be 1.3 workers for 1 retiree.
In other words, it will take about four employees to finance the pensions of three retirees.
By comparison, in 2002 the ratio reached 2 to 1: the contributions of four employees financed eight pensions.
