THE ECONOMICS OF THE ELDERLY

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THE ECONOMICS OF THE ELDERLY A THREAT OR
OPPORTUNITY
OWEN NANKIVELL MA (ECON)
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50
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• Why are the elderly important?
• There are a lot of them and more on the way
• They have money
• They have distinctive spending habits

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• There are a lot of them and more on the way
• Growth in population over 65 1971 to 2003 28
• By 2003 the over 65s share of the total
  population was 16
• Proportion of people over 85
• 1971 7
• 2004 12
• Forecast change in share taken by the over
  65s 2003 2021
• Male 14 18
• Female 18 22
• Average 16 20
• Life expectation at birth 1971 2003

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• 2. They have money (1)
• Early retirement
• Good pension
• Lump sum
• Children are off their hands
• Windfall of sale of parents homes
• Windfall of moving from high house price area

Incidentally the 50 group is a significant
source of voluntary workers.
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2. They have money (2) Average weekly
expenditure in 2002/3 per week
50-64 392.0 112.6 65-74
243.5 69.9 75 159.4 45.8 All
ages 348.3
100.0 Distinction between state and non-state
pensions for one-man /one-woman households.
Average weekly expenditure per person (2002/3)
per week State pension households
92.9 Non-state pension households
156.8 Ratio 59.2
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2. They have money (3) Comparison of
Components of household income per head Devon and
National
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3. They have distinctive spending habits
(1) Household spending by age group 2002/3
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3. They have distinctive spending habits
(2) Pensioners Expenditure by one man/one woman
pensioner households 2002/3
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• The Ageing sequence
• Life begins at 50
• Leisure oriented life style
• Holidays
• Eating out
• Culture vultures

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The ageing sequence (2)

• Bones begin to creak!
• Less DIY more use of support services
• Gardeners
• Decorators
• Use of ageing aids
• Physiotherapy
• Aromatherapy
• Acupuncture

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The ageing sequence (3) Bones beginning to
creak even more!

• Worry over home security
• Adapting homes e.g. replacing steps with slopes
  and rails
• More use of minor surgery
• Greater use of GPs and paramedicals

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• The ageing sequence (4)
• The creaking becomes deafening!
• Residential homes
• Nursing home
• Hospitalisation
• !!!!!!!!!!!!!!!

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• The ageing service sector
• Hotels and catering
• Recreational services
• Transportation
• Paramedical services
• Age adaptive services
• Legal services
• Construction sector
• Medical facilities
• Funeral services

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The Torbay Incident