The world is not getting any younger. Over the coming decades, the United States and other developed nations will see their populations turn increasingly gray. This change in demographics stands to affect our economy, especially the healthcare industry. Investors looking to capitalize on the situation have a seemingly endless supply of options.
Baby boomers are fueling the changing demographics in America. In 2012, there were 22 people aged 65 and older for every 100 working-age people in the country. In 2030, there will be 35 people aged 65 and older for every 100 working-age people, according to a recent analysis from the Census Bureau. After 2030, the number continues to increase slightly to 36 people by 2050 when the nation’s 65 and older crowd is projected to reach almost 84 million, double its size from 2012.
Fidelity notes that the healthcare sector is likely to grow faster than the overall economy. In fact, the government estimates that healthcare spending in the U.S., which already amounts to $3 trillion per year and accounts for 18 percent of gross domestic product, will rise by an average of 5.8 percent annually over the next eight years.
Let’s take a look at three stocks that offer investors exposure to the healthcare industry.