Longevity Economy Drives $600B Opportunity in Retirement, Biotech, and AI Finance
By 2025, the global population aged 65 and older will exceed 1.6 billion, presenting significant shifts in economic and financial landscapes. Contrary to concerns about an aging crisis, increased longevity and evolving labor markets indicate extended working lives and healthier older adults, which eases traditional dependency burdens in developed economies. This demographic evolution is prompting financial institutions and investors to rethink strategies, emphasizing the 'silver dividend'—a $600 billion opportunity driven by advancements in retirement products, healthcare, and AI-powered financial planning.
The U.S. annuities market reflects this trend with record sales of $430 billion in 2025, boosted by innovative products such as Registered Index-Linked Annuities (RILAs) and Fixed Indexed Annuities (FIAs) that offer market-linked growth with downside protection. However, annuities alone cannot address the complexities of longevity; emerging AI platforms are facilitating personalized financial planning by integrating health data and dynamic economic variables.
Biotechnology is experiencing considerable investment focused on geroscience, the study of aging as a root cause of disease, attracting $2 billion annually. Companies like Superpower and ResTOR Bio are advancing therapies aimed at delaying cognitive decline, positioning the market to potentially reach $200 billion by 2030. Strategic partnerships and clinical validation are central to investor interest in this sector.
Artificial intelligence is transforming retirement planning through platforms that incorporate dynamic data on healthcare costs, inflation, and regional differences to improve personalization and client engagement. The adoption of AI tools by older demographics supports a cultural shift towards technologically enabled financial management.
Despite opportunities, challenges such as regulatory uncertainties in geroscience and interest rate fluctuations impacting annuities remain. With nearly 20% of the U.S. population projected to be over 65 by 2050, aligning investments with demographic trends — including biotech innovation, adapted annuity products, and AI financial platforms — is critical. Initiatives like the U.N. Decade of Healthy Ageing (2021–2030) highlight the potential for growth through age-inclusive infrastructure and healthcare advancements. Overall, longevity is redefining markets and creating new avenues for investment and innovation.