Healthy, wealthy and wise

Despite recent shocks to the global economy, the world continues to get richer, people are living longer and, through advances in technology and communications, we continue to get smarter. This convergence of factors is expanding horizons of health, economic and investment opportunity—positive news for the 50+ age group that prompts us all to think more optimistically about aging and the future.

This dynamic age group is healthier, working longer, ably skilled and tremendously productive, capable of steering the national economy in new directions to meet its needs. And global companies are applying the best of their “can-do” spirit and technological and scientific acumen toward making aging a better and more positive experience.

The case for optimism

The U.S. economy continues to expand at a rate that has been largely unbroken for more than 150 years. A 2015 Stanford University study found that gross domestic product per person in the United States has grown at a remarkably steady average rate of around 2 percent per year since the late 19th century.

Citizens who are more educated and are living and working longer can take advantage of this economic growth. Since 1950, the rate of improvement in life expectancy has risen about 1.8 years per decade to 78.8 years in the United States. Longer life spans and the aging of baby boomers will combine to roughly double the population of Americans aged 65 or older during the next 25 years.

If we expand the pool slightly to include workers 50 and above, this graying population has real economic power, expected to account for more than half of U.S. GDP by 2032, according to Oxford Economics.

Tools for a better life

As they drive more productivity, education and technology are shifting American attitudes toward aging for the better, and helping us grow smarter and more efficient in the creation of new wealth. And as computers become ever more powerful, the economic benefits of mechanization will cascade into other industries that promote longevity, like health care.

“The global economy has come together at an incredible speed,” said George Evans, CIO, Equities and portfolio manager at OppenheimerFunds. “Technology has enabled the ability to communicate. That’s broken down barriers. We’re now moving from the Internet of People to the Internet of Things.”

Through investment vehicles like the Oppenheimer International Growth Fund, supporting mass affluence, new technology and aging populations means investing in forces that are shaping the world economy and creating growth streams within it.

Wealth supports health

Longer life expectancies mean increased health care spending. In the United States, the percentage of GDP spent on health care has more than tripled since 1960, rising from 5 percent in 1960 to 17 percent in 2014. That share of spending by Americans age 50 and up is projected to hit $4 trillion in 2032, according to AARP and Oxford Economics.

This spending boom is also expected to generate increased demand for in-home health-care services and medical technology that help older people retain their independence. And technology advances are bringing more tools for extending our active years and improving health.

Companies serving the over-50 market are targeting investments in everything from robotics to assisted living to vision and hearing care, and are continuing to grow and improve quality of life among populations who expect to live longer than their parents did.

Several Oppenheimer International Growth Fund companies are working to bring hearing and vision devices to more people around the globe. Sonova has made strides to improve the range of hearing aid solutions and increase access in a world market estimated at $5.4 billion. And Essilor International is advancing prescription lens and other vision technology to answer the needs of a growing demographic that is eager to improve both health and lifestyle.

Enjoying the golden years

Healthier, longer lives and wealth growth lead to more opportunities to enjoy leisure and travel. In a 2015 AARP survey, approximately 99 percent of 50+ respondents planned to take a trip for personal or leisure purposes that year, either domestically or abroad.

The process of planning and taking trips is more accessible than ever before. For example, Amadeus IT Holding SA provides information technology solutions for the global travel and tourism industry, and is also an Oppenheimer International Growth Fund company. Its software systems ease the travel experience by automating search, booking and other processes, in just one of many examples of companies that help seniors lead the good life.

Capital investment is nurturing opportunities in new and emerging markets all over the world, feeding innovation, driving entrepreneurship and creating the conditions for a new chapter of growing global wealth, longer lifespans and broader prosperity for all.

Read more about growth opportunities with OppenheimerFunds.

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As of 8/31/16, Sonova Holding constituted 0.88 percent, Essilor International constituted 0.96 percent and Amadeus IT Holding constituted 1.33 percent of  International Growth Fund’s assets. 

Mutual funds are subject to market risk and volatility. Shares may gain or lose value.

The mention of specific companies does not constitute a recommendation by any Oppenheimer fund or by OppenheimerFunds. Certain Oppenheimer funds may hold the securities of those companies mentioned.

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