Europe's political debate has become increasingly dominated by competitiveness, productivity and economic security. Governments are searching for new sources of growth as labour shortages intensify, public finances come under pressure and businesses adapt to the green and digital transitions. Yet one of Europe's most significant economic transformations remains surprisingly absent from the conversation.
That transformation is longevity.
People are living longer than ever before: not simply surviving into old age, but remaining healthier, more active and economically engaged for much longer. Longevity is reshaping labour markets, consumer demand, financial systems and the way societies organise work, care, and retirement.
Italy illustrates this transformation particularly well. Life expectancy has reached record levels: 81.7 years for men and 85.8 years for women. Today's 65-year-olds represent 92 per cent of their birth cohort and can expect many more years of life ahead. Across Europe, people who reach the age of 65 can expect to live for a further twenty years or more, including more than nine years in good health on average.
These figures tell a story that extends far beyond ageing. They point to the emergence of what might be called a "second adulthood": a new stage of life characterised by independence, participation, consumption and, increasingly, continued economic contribution. The question is no longer whether Europeans will live longer, but whether governments and businesses are ready to harness the opportunities that longer lives create.
The longevity economy is already reshaping markets
People over the age of 50 currently generate around 34 per cent of global GDP and account for roughly half of all consumer spending, a share expected to rise to 60 per cent by 2050. They travel, invest, purchase homes, consume healthcare and leisure services, inherit and transfer wealth, and increasingly shape demand across entire sectors of the economy.
The result is the rapid emergence of the so-called Silver Economy: an ecosystem of goods, services and infrastructure designed for societies in which people live longer and remain active for longer. It is worth around €39 trillion globally and expected to more than double by 2050.
Longevity is also changing the way wealth moves
The longevity revolution is not only transforming how people live; it is also transforming how wealth moves through society.
Over the next twenty years, it is expected that more than €64,000 billion will change hands globally as the baby-boom generation ages and wealth is transferred to younger generations, potentially making this the largest intergenerational transfer of wealth in modern history.
This reallocation of assets, inheritances and savings is set to reshape the flows within the banking, insurance and wealth-management sectors. Consumption patterns, investment decisions and financial strategies will increasingly be shaped by a world in which wealth remains concentrated among older generations for longer and is passed on later in life.
The scale of this transition highlights a crucial point: longevity is not merely a demographic phenomenon. It is becoming one of the defining economic forces of the twenty-first century.
The inequality challenge of longer lives
The benefits of longer lives will not be distributed equally. In the eurozone, the richest 10 per cent of households hold 60 per cent of total wealth, and the gap widens among older people. Those who have accumulated wealth will be better placed to view longevity as an opportunity; those who have not may become increasingly dependent on public systems that are themselves under growing pressure.
The challenge is not only institutional but also personal. Even younger generations who have the means to prepare for longer lives often struggle to do so. Behavioural finance describes this as "hyperbolic discounting": the tendency to undervalue what lies far in the future and postpone decisions such as saving, investing or planning for retirement. The paradox is striking: younger people know they are likely to live longer than previous generations, yet long lives remain difficult to imagine and prepare for.
The challenge, therefore, is to ensure that societies are prepared for longevity, and that the opportunities it creates are accessible to all.