By 2050, 1.5 billion people will be over 65 years old — that's almost twice as many as today.
Japan is already living in the future: 30% of the population are retirees.
Europe and China are following the exact same route.
And while everyone talks about technology and innovation, the real threat is creeping in from a completely different direction.
🔍 Money 'ages' along with people
After 60+, the capital structure changes dramatically:
people almost stop holding stocks,
move to bonds, deposits, and cash,
become more cautious and spend less.
In Japan today, 50% of all savings is just cash. This does not help the economy — money stops working.
📉 What happens to a country when there are too many retirees?
fewer investments,
weak consumer growth,
higher debt burden,
less entrepreneurial activity,
a slowdown in economic development.
The economy literally loses the 'fuel' that used to propel it forward.
💥 The main threat
When the share of young people declines and the share of elderly people increases, the money that creates economic growth decreases.
The world has become accustomed to decades of rapid development.
But in aging countries, this scenario quickly becomes history:
the dynamics shift towards slow, cautious, low-risk growth.
#economy #MacroEconomics #demography #Finance
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