Latin America and the Caribbean are experiencing one of the most rapid demographic transitions in the world, which is profoundly transforming their economic and social structures. 

This rapid aging simultaneously creates challenges and opportunities, requiring appropriate and timely public policies that prepare the region for a future where older people will constitute an ever-increasing proportion of the population and longevity will be the norm. 

Unlike more developed regions such as Europe, Latin America and the Caribbean face this change in a particularly complex context, characterized by:  

1. a lower level of economic development;
2. a significantly accelerated rate of aging;
3. the absence of consolidated welfare states
4. structurally high levels of inequality.  

The numbers: one in four people will be over 60 years in 2050 

Population projections speak for themselves and set out an inevitable roadmap: 

• In 2025, the population aged 60 and over will exceed 98 million people, representing 14.7% of the total population.
• By 2050, this figure will double, reaching 183 million, which will be equivalent to one in four people in the region (25%).
• This growth contrasts sharply with the situation in 1950, when this age group represented only 5% of the total population. 

Aging brings both challenges and opportunities amid accumulated vulnerabilities and structural inequalities. 

Aging represents a structural challenge that affects all spheres of society and the economy, such as purchasing power, income generation, savings patterns, and the financing of periods of dependency. Furthermore, aging is exacerbated by socioeconomic inequalities and reflects the disadvantages accumulated throughout life in education, health, and decent job opportunities. Its effects are most pronounced in: 

• Pension systems: insufficient coverage, low benefits, and financial imbalances in these systems force many older people to remain in the workforce, often in informal conditions.
• Labor markets: The working-age population is expected to decline steadily, and the ratio of older people (aged 65 and over) to working-age people is expected to increase, placing greater demands on the workforce.
• Health and long-term care systems: the growing pressure from chronic diseases and demand for specialized care is exacerbated by poor health conditions accumulated over the life cycle. 

In the medium term, the reduction in the proportion of the working-age population and the increase in the demographic dependency ratio can negatively affect per capita GDP growth, jeopardizing regional development.   

But aging also opens up new opportunities for economic growth and job creation. Increased consumption of goods and services by older people gives rise to the silver economy, which encompasses productive activities aimed at meeting their needs. The silver economy offers prospects for economic growth and job creation in key sectors such as health, care, pharmaceuticals, finance, technology, tourism, and adapted housing. 

Inclusive and sustainable public policies to transform aging into economic growth 

To address the challenges and seize the opportunities of aging, it is imperative to align public policies with demographic change through a life-cycle approach and move toward an “age-friendly society” where intergenerational solidarity underpins sustainable development.   

The magnitude of aging requires comprehensive, inclusive, and sustainable public policies that address both its immediate effects and the structural causes that deepen vulnerability in old age. 

It is a priority to reform and strengthen pension, health, long-term care, and labor market systems, complementing them with continuing education and digital literacy programs. It is also essential to have a solid institutional and regulatory framework that ensures the coordination of public policies and sectors related to aging. 

In addition, the economic impact of aging could be mitigated by: 

• Substantial improvements in productivity.
• Strategic investment in education and professional training.
• Full incorporation of women, older people, and migrants into the workforce.