Sizing up savings, needs of the aged

Sizing up savings, needs of the aged

SINGAPORE - Households in Asia Pacific with residents aged 60 years and above will have total savings of about US$3 trillion by 2017, the second Asia Pacific Silver Economy Business Opportunities Report 2013 estimated.

That is also the estimated size of the silver economy in this part of the world, according to the report which was launched on Tuesday in conjunction with the 4th Ageing Asia Investment Forum.

Speaking at the event, Janice Chia, founder and managing director of Ageing Asia Pte Ltd, said her firm used the past five years' household savings growth to project into the next five years, the gross domestic product of each country and sample population data of those aged over 60 to establish the market size of the region's silver economy.

"The analysis showed that the region's household savings (for those 60 years and older) is projected to increase 58 per cent within the next five years. Based on that projection, Asia Pacific's silver economy is expected to hit US$3 trillion by the year 2017," she said.

Ageing Asia is both the producer of the report and the organiser of the investment forum as well as a series of other activities including the Asia Pacific Eldercare Innovation Awards, and the inaugural Ageing Asia Government and NGO Symposium taking place during the International Ageing Week held this week.

In terms of size, China and Japan are and will remain the biggest silver economies in the region. They are followed by Australia and Korea.

But if the market potential is weighted based on per-capita household savings and the growth of the savings, percentage of population which is ageing and life expectancy, then Hong Kong is ranked first. It is followed by Australia, then Singapore, Japan and Korea.

Besides the economies mentioned, the report also covered India, Myanmar, Indonesia, Thailand, Vietnam, the Philippines, Taiwan, Malaysia and New Zealand.

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