Page 6 - Elderly care and housing demand in the EU
P. 6
The opportunities of ageing
1.2 Housing and health important expenses for the elderly
Elderly consumption share set to rise Older consumers spend more on housing and health partly due to old-age physical limitations (3), the EU
On average, the income of elderly households has Ageing societies experience shifting consumer patterns. demand for elderly care and housing that is tailored to
grown steadily in the examined EU-states. The main Household consumption gradually decreases when the the needs of the elderly (for instance, assisted living and
reason seems to be higher pension income stemming breadwinner reaches their fifties. nursing homes) is bound to increase.
from growing labour participation of women and Elderly people spend a larger part of their income on For the eleven examined EU countries, based on the
Eastern European countries catching up in general. housing, health products and services, and food. They forecasts for demography and GDP, we expect EU-wide
According to a baseline forecast from a study carried spend relatively less on recreation, education, clothing demand for elderly care and home support to grow by
out for the European Commission, total (private and and transport. up to 3.5% per year in volume until 2030. Our
public) consumption related to the 50+ population is estimation for senior housing demand reaches 5.5%
projected to grow by approximately 5% per year until Growing demand for elderly care and housing potential growth per year, based on the growth of the
2025 in the EU. With people growing older (1), incomes of elderly over-75 population (2,2% per year in this period), real
people increasing (2) and the relatively high proportion GDP per capita (1,2%) and the elderly's shifting
of the elderly's expenditure going to housing and care, preferences for housing in the eleven countries (+2%).
Real incomes of elderly households have risen More housing and health consumption, less transport In the next chapter, we examine in which of the eleven
Growth of mean equivalised net income of households Consumption expenditure by age and (selected) purpose, in countries selected, the potential demand for elderly
with a breadwinner over 75 years of age, 2007-2017* % of disposable income care and housing is the greatest. We do this by
compiling country rankings based on different demand
Housing, water, electr., fuels (gas incl.)
68% Food and non-alc. beverages factors.
Transport
Miscellaneous goods and services
Recreation and culture Demand for elderly care and housing rises
42% Health
37% Main drivers for demand elderly care and housing
Furnish., househ. equipm. and maintenance
Restaurants and hotels
19% Clothing and footwear Ageing More elderly people who live for longer
11% 10% 10% Communications
8%
4% 3% 2% Alcoholic beverages, tobacco and narcotics Income growth Increasing spending power of the elderly
Education
Rom Pol Fra Spa Aus Bel Cze UK Ger Net Ita People aged 60+ 0% 20% 40% Needs Elderly people spend more of their income
People aged 45-59 on housing and care than younger people do
Source: Eurostat, ING Economics *in national currencies, 2007 prices Source: Eurostat, ING Economics
ING Economics Department 6 Elderly care and housing demand in the EU – May 2019