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Buenos Aires, Argentina, Aug. 27 — The International Finance Corporation (IFC), a member of the World Bank Group, announced today the launch of the Silver Economy Initiative, a pioneering effort aimed at creating and developing a market for innovative financial products and services tailored to the 50+ population in Latin America and the Caribbean. The initiative, introduced during the Latin America Congress of Sustainable & Inclusive Banking organized by the Latin American Banking Federation (FELABAN, for its Spanish acronym) and the Argentinean Association of Public and Private Banks (ABAPPRA, for its Spanish acronym), seeks to foment inclusive growth by helping financial institutions better serve this fast-growing demographic. "This rapid demographic shift in the region presents both significant challenges and opportunities," said Liliana Pozzo, Manager, Sustainable Finance Advisory, IFC Latin America, Caribbean, and Europe. "Given that this population segment represents millions of jobs and nearly 40% of consumer spending, financial institutions must adapt by creating inclusive financial products that cater to the unique needs of older adults. By doing so, they can capitalize on this substantial opportunity." As part of the Silver Economy Initiative, IFC will provide targeted advisory services to financial institutions, enabling them to design business models and value propositions specifically addressing the needs of older adults. By promoting a deeper understanding of this demographic's economic profile, contributions, and unique needs, the initiative aims to unlock significant economic potential while enhancing financial inclusion.
The initiative is a response to increasing longevity in Latin America and the Caribbean. Life expectancy in the region has risen sharply—from 48.6 years in 1950 to 75.1 years in 2019—and is projected to reach 77.2 years by 2030, according to Economic Commission for Latin America and the Caribbean (CEPAL, for its Spanish acronym). Additionally, fertility rates have plummeted from nearly six births per woman in 1960 to just over two in recent years, contributing to an aging population. As of 2022, the Economic Commission for Latin America and the Caribbean (ECLAC) reported that 88.6 million people aged 60 years and over reside in the region, representing 13.4% of the total population. This figure is expected to rise to 25.1% by 2050, equating to 193 million people. The Silver Economy Initiative also emphasizes the importance of incorporating a gender perspective into serving the aging population. Women, who generally live longer than men, face unique challenges that significantly impact their financial well-being in older age. These challenges include limited access to tailored financial products, insurance, and pensions, particularly due to their disproportionate representation in the informal sector. Additionally, women typically earn lower salaries throughout their careers, resulting in reduced pension revenues upon retirement. The growing numbers of older adults in Latin America and the Caribbean underscores their economic impact. However, challenges persist due to insufficient market-specific data on this segment, which hinders the development of tailored financial propositions. By addressing these challenges and focusing on gender-specific needs, the Silver Economy Initiative aims to create a more equitable and inclusive financial landscape in the region. About IFCIFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org Stay Connected with IFC on social media.
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