Investing in Healthy Longevity: A $38 Trillion Healthcare Cost-Saving Opportunity

The world population is undergoing a profound demographic shift, marked by a ticking time bomb with economic and social implications. As birth rates decline and life expectancy rises, the traditional population pyramid is inverting. Around 100 individuals in the working-age bracket (20-64) support approximately 33 people aged 65 and above. Brace yourself, as this ratio is expected to nearly double, with every 100 workers facing the daunting task of supporting nearly 60 individuals over 65[1]. Apart from the astronomical expected healthcare costs, this shift strains the shrinking younger population tremendously.

In the dynamic landscape of investment opportunities, one area that stands out is the potential for substantial healthcare savings, estimated at $38 trillion, through boosting #healthspan and extending life expectancy by just 1 year. Far from being a mere cost, expenditure on older populations can be a strategic investment with a profound impact on healthcare, productivity, and societal well-being.

Understanding and strategically positioning oneself within this evolving demographic context may unveil new avenues for innovations, products, and services tailored to the needs of an aging population, thus creating a promising frontier for forward-thinking investors. Our Global Healthspan Report showed that 97% of financial professionals believe healthy longevity investments can yield greater financial returns than traditional healthcare investments, and some investors already perceive the healthy aging opportunity as the upcoming chapter in the consumer wellness market, a sector that reached $1.5 trillion in 2021 according to McKinsey.

Follow or lead, healthspan is here to stay

The world is waking up to the importance of improving healthy aging and an increasing global recognition of healthspan. The UN General Assembly has declared 2021–2030 the UN Decade of Healthy Aging, urging collaborative action to foster longer, healthier lives. Nations like the United Kingdom and Singapore have set ambitious goals to increase healthspan by five years while preventing chronic and age-related diseases, which has become a key pillar of Vision 2030 in Saudi Arabia[2]. This global momentum signals a health imperative and an unparalleled investment opportunity.

Healthspan research is significantly underfunded?

Despite its immense potential, aging research receives 10 to 100 times less funding. While countries spend trillions of dollars treating the symptoms of aging, investment in understanding its root causes lags far behind. In the United States, for instance, the National Institutes of Health allocates less than 1% of its $45 billion research budget to comprehending the underlying biology of aging (approximately $337 million)[3]. The economic toll is starkly evident, with billions lost annually to Alzheimer's, diabetes, heart disease, stroke, and arthritis. It's time for visionary entrepreneurs to recognize the untapped potential in redirecting resources toward addressing the root causes of aging.

A $38 trillion investment opportunity in healthcare cost-saving

Expanding healthy living by just 12 months can generate a staggering $38 trillion annually in combined healthcare cost savings and productivity increases[4]. This transformative opportunity positions investment in healthspan as a strategic move, benefiting older people and growing participation, consumption, and social cohesion that benefits all of society.

The intersection of demographic shifts and scientific advancements presents a clear opportunity for investors and entrepreneurs. By investing in initiatives that promote a healthy and increased lifespan, we can transform the societal challenge of aging into a strategic opportunity for sustainable and inclusive economic growth, making the future of investment not just in financial gains but in the well-being of the world population.

At Hevolution, we're investing in innovators who are shaping the future of healthy aging. From supporting groundbreaking therapies that target the root causes of aging to investing in cutting-edge platforms and technologies designed to compress drug development timelines and improve therapeutic accessibility, our mission is clear. Our investments aim to transform the landscape of a healthy human lifespan, drive positive change, and pioneer a healthier, more vibrant future for all humanity.

To find out more about our work, visit www.Hevolution.com?

Sources:

1. Old-age dependency ratio
2. Health Sector Transformation Program
3. National Institute on Aging
4. The economic value of targeting aging