Page 6 - Elderly care and housing demand in the EU
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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
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