BUENOS AIRES, ARGENTINA, August 27 — The International Finance Corporation (IFC), a member of the World Bank Group, today announced the launch of the Silver Economy Initiative, a pioneering initiative aimed at creating and developing markets for innovative financial products. announced the increase. Services adapted to the 50+ population in Latin America and the Caribbean.
The initiative was announced during the Latin American Conference on Sustainable and Inclusive Banking, organized by the Federation of Latin American Banks (FELABAN) and the Argentine Public and Private Banks Association (ABAPPRA), and aims to help financial institutions tap into this rapidly growing demographic. to provide better service.
“This rapid demographic change in the region presents both significant challenges and opportunities,” said Liliana Pozzo, Sustainable Finance Advisory Manager for Latin America, the Caribbean, and Europe at IFC. said. “As this population accounts for millions of jobs and nearly 40% of consumer spending, financial institutions must adapt by creating comprehensive financial products that meet the unique needs of older adults. By doing so, financial institutions can take advantage of this important opportunity.”
As part of the Silver Economy Initiative, IFC provides targeted advisory services to financial institutions to help them design business models and value propositions that specifically address the needs of older adults. The initiative aims to deepen our understanding of this population’s economic profile, contributions and unique needs, fostering financial inclusion while fostering greater economic potential.
This initiative comes in response to increasing longevity in Latin America and the Caribbean. According to the Economic Commission for Latin America and the Caribbean (ECLAC), life expectancy in the region has increased significantly from 48.6 years in 1950 to 75.1 years in 2019, and is projected to reach 77.2 years by 2030. .
Furthermore, the birth rate has fallen dramatically, from almost six births per woman in 1960 to just over two in recent years, and this is increasing as older people make up the population. contributing to an increase in the proportion of
As of 2022, the Economic Commission for Latin America and the Caribbean (ECLAC) reports that the region was home to 88.6 million people aged 60 and over, representing 13.4% of the total population. This number is expected to increase to 25.1% by 2050, which equates to 193 million people.
The Silver Economy Initiative also emphasizes the importance of incorporating a gender perspective into the care of that segment of the population. Women, who typically live longer than men, face unique challenges that have a significant impact on their financial well-being in retirement. These challenges include limited access to tailored financial products, insurance and pensions, particularly due to disproportionate representation in the informal sector. Additionally, women typically earn lower salaries throughout their careers, which leads to lower pension income in retirement.
The growing number of older people in Latin America and the Caribbean highlights its economic impact. However, challenges remain due to the lack of market-specific data on this segment, making it difficult to create customized financial proposals. The Silver Economy Initiative aims to address these challenges and create a more just and inclusive financial environment in the region by focusing on gender-specific needs.
About IFC
The International Finance Corporation (IFC), part of the World Bank Group, is a leading international development agency focused on the private sector in emerging markets. The company operates in more than 100 countries, leveraging its capital, expertise and influence to create markets and opportunities in developing countries. In FY2024, IFC committed a record $56 billion to private businesses and financial institutions in developing countries, mobilizing private sector solutions and capital to build a more livable planet and a world without poverty. For more information, please visit www.ifc.org.
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