Today's "silvers" – individuals aged 50 and beyond – are more active, connected, and financially empowered than ever before. Photo: World Bank.
Forget the stereotypes of older adults in rocking chairs. Today's "silvers" – individuals aged 50 and beyond – are more active, connected, and financially empowered than ever before. Typically resulting from a combination of longer life expectancies and declining birth rates, population aging started in high-income countries, such as Japan, Italy and Spain, but is now more pronounced in low- and middle-income countries.
In Latin America and the Caribbean, a seismic demographic shift is already happening due to an increasing proportion of elderly individuals. The region, once defined by a predominantly young population, is now the fastest-aging region in the world.
Countries such as Brazil, Colombia, Uruguay, Argentina and Chile are already classified as having advanced aging populations, according to the UN World Population Prospects, 2024. As of 2024,166 million people aged 50 and over lived in the LAC Region, representing 25% of the total population. By 2050, 280 million people will be silver, which represents 38% of the total population
This unprecedented demographic trend is reshaping the region’s economic landscape and creating new Silver Economy business opportunities. The European Union defines the Silver Economy as “the sum of all economic activity that serve the needs of people aged 50 and over, including the products and services they purchase directly and the further economic activity this spending generates.” The Silver Economy of Latin America and the Caribbean is growing fast and presenting opportunities across sectors such as housing, healthcare, tourism, and entrepreneurship.
Among the sectors most affected by this shift is financial services, which encompasses savings, credit, insurance and pension products, among others. The silver population is becoming more active economic agents, entrepreneurs, and consumers with unique financial needs. For banks, serving this segment can drive long-term customer loyalty, reduce portfolio risks—the silver population is often more financially responsible borrowers—and spark product innovation.
The global economic impact of the Silver Economy is unequivocal: according to the American Association of Retired Persons (AARP), in 2022 this segment accounted for about 34% of global GDP ($45 trillion). This contribution is expected to grow to 39% of global GDP by 2050 ($118 trillion).
A silver lining opportunity
In spite of such compelling statistics, financial institutions in Latin America and the Caribbean have yet to capitalize on this expanding opportunity. Age biases, limited data, and a lack of tailored products have kept banks from fully addressing this market’s needs. Yet the demand is clearly there: older adults require customized solutions, including long-term savings plans, retirement-related investments, healthcare financing, and credit products that align with their financial goals.
Addressing these gaps represents not only a business opportunity but also a chance to promote financial inclusion for the silver population, many of whom face unique barriers such as limited digital literacy, restricted access to smartphones, and biased loan practices. By addressing these challenges, financial institutions can tap into a resilient and underserved customer base.
The Silver Economy must also consider the distinct needs of women, who, on average, live seven years longer than men and comprise 55% of the region's older adult population. Women face unique financial challenges, including lower lifetime earnings, reduced pension contributions, and disproportionate participation in informal labor markets.
By designing products focused on silver women—such as flexible savings accounts, tailored insurance plans, and targeted financial advisory and education programs—financial institutions can empower women to achieve greater financial security and prosperity.
Through advisory services, IFC works with financial institutions to develop business models and value propositions tailored to the needs of older adults. By promoting a deeper understanding of this demographic’s economic profile, contributions, and requirements, the initiative seeks to unlock significant economic potential while advancing financial inclusion. Adults aged 50 and over, for example, can start new businesses or expand existing ones—promoting greater self-reliance, reducing dependence on social security, and driving job creation.
The Silver Economy is happening fast. Financial institutions that act quickly stand to gain the most. Latin America’s demographic transformation presents a rare opportunity to combine economic growth with meaningful social impact.
Join the Conversation