The evolution of the population confirms an upward trend towards an increasingly ageing society. Increased life expectancy and growing longevity have important economic consequences, such as variations in household consumption patterns (along with new companies and institutions that respond to these changes), size and composition of public expenditure (increased spending on health, long-term care and pensions), savings rates, demand for financial products, workforce, etc.
The term ageingnomics or economics of ageing refers to the economic effects of ageing, a process that presents challenges for current welfare states and also offers opportunities to develop other complementary activities and increase the economic growth of the territories in which they are located.
This study analyzes two of these issues in the Valencian case: the importance of older people in private consumption (based on the consumption of goods and services of older people’s households) and their demand for public services, especially health care (primary, hospital, …) and social protection (dependency and population at risk of poverty). The data is offered according to age groups, specifically, 55-64 years, 65-74 years and 75+ years, since consumption patterns and needs vary depending on age and the demand for health and long-term services increases with age. Based on expenditure estimates, direct and indirect effects on the Valencian economy are calculated, both in terms of income and job creation. The report also analyzes the future of the main sectors affected by growing longevity and the strengths, weaknesses and opportunities that it presents to the Valencian Community.