Credit Suisse issued a report that speaks to the heart of our Aging of the Population investing theme – the changing demands and needs of the aging population as well as their economic footing will lead to a sea change in spending as Boomers no matter what country they live in become conservers of wealth. The spending shift will translate into tailwinds for certain areas of the economy and pronounced headwinds for others.
China’s baby boomers are set to retire in the coming years, and they’re spending in different ways compared to the current retirees, according to a Credit Suisse report.
These baby boomers — defined in the report as those born in the 1960s — are more aware of having their health-care needs covered, and that’s set to lead to a “very sharp shift” in trends in the country, said Will Stephens, Asia Pacific head of quantitative and systematic strategy at the bank.
Effects from the aging population will be felt across a wide range of industries, from health care to insurance, and travel and e-commerce, according to the report, which surveyed 1,500 middle-aged and elderly consumers in China.
Stephens said the group was “the largest cohort in history” — or about 245 million Chinese, and highlighted the differences compared to the current generation of retirees.
“I think the key difference here is the sheer scale and size of the current generation of Chinese baby boomers that are going to be retiring over the next 10 years,” he said. “This boomer generation came of age right at the cusp of China’s inflection point into what’s essentially the greatest growth trend in history. So they have very different consumption patterns, different interests than what we see amongst the current retirees,” he told CNBC on Tuesday.
Citing the survey, Stephens pointed out that 39% of baby boomers expect that existing health-care social security plans will not likely meet their needs.
Related: Why the Future is Expanding For Wireless IP Companies
Source: Credit Suisse: China’s aging population will benefit healthcare, insurance