Italy has the highest percentage of over-65s in Europe, with the population in this age range having grown steadily by around 1.8 million people over the past ten years – that’s according to a study by Censis-Tendercapital, which has shown that the proportion of wealth held by over-65s has almost doubled thanks to the significant increase in people living past the age of 65. Forecasts state that the current figure of 13.7 million over-65s in Italy – equal to 22.8% of the total population – will increase to 19.6 million, or 33.2% of the total population, by 2051. That’s a percentage increase of 42.4% during a period in which the country’s overall population will drop by 4.1%.
The silver economy
The report stresses that this data is not to be seen as a negative. The average wealth of over-65s is 13.5% higher than the Italian average, while millennials lag behind by 54.6%, and the elderly use this wealth to power what is known as the silver economy, which is on the up in Italy.
These figures go some way to explaining why spending on family expenses among over-65s has increased by 23% in the last 25 years, while overall spending of this kind has dropped by 14% in the same period. One factor is that elderly are now spending a lot more on things like culture, leisure and travel, while it must also be considered that 9.6 million over-65s now look after their grandchildren, with 3.6 million doing so on a regular basis.
“Investing resources into the elderly is becoming a fundamental part of an overall growth strategy, because over-65s are an important part of this too,” says Tendercapital president Moreno Zani. “We’re pleased with the findings of our productive collaboration with Censis and proud of our first report, which allows us to better assess new investment strategies in the silver economy. This will represent one of our future commitments, because the elderly are a precious resource that cannot be ignored.”
The driver of the Italian economy
The figures show that any concerns over poverty among elderly people are way off the mark. The average family income of over-65s has increased by 19.6% in the last 25 years and now accounts for 31% of the total, up from 19%. Over the same period, the income of millennials has fallen sharply by 34.3%. Moreover, 76.1% of over-65s own their own home, while the same can be said for only 44.5% of young people (down from 49.7% 25 years ago).
Overall, 62.7% of over-65s state that they have a solid economic situation with plenty of reserves, in comparison with 36.2% for the population as a whole. The truth is that while over 60% of pension payments work out as less than €1,000 per month, many households receive multiple pensions and have a number of different income streams which greatly supplement these amounts.