They’re calling it the “silver tsunami.”
And it’s about to deliver a hit to the economy… And in the process, it could impact – or wipe out – your retirement plans.
According to the United States Census Bureau, there were nearly 56 million Americans aged 65 or older in 2021. By that count, retirees make up 17% of our total population.
But the Census Bureau expects this age group to grow rapidly by the end of the decade.
Based its latest projections, there will be more than 73 million people aged 65 or older by 2030. That’s a 30% increase in retirees just over the next eight years.
And that demographic’s growth is going to threaten government funding programs like Social Security.
Here at the Intelligent Income Daily, my team and I look for the best income-producing investments that can help retirees secure their future. If you can’t be sure the government will support you, it’s time to take matters into your own hands and build an investment portfolio that will.
Fortunately, the same aging trends that are casting doubt on Social Security also present an attractive investment opportunity.
So today, I’ll share what’s going on, what we can expect, and how you can start boosting your income streams now to keep ahead of it all.
The Silver Tsunami Will Have Far-Reaching Consequences
Here’s what a growing retired population means for us…
The aging of our society will put new demands on our economy. A smaller number of working-age people will be expected to support a larger group of older folks who have left the labor force.
We can already see signs of the strain through Social Security projections. Since the program is funded by payroll taxes, fewer workers and a larger number of beneficiaries means there’s less money go to around.
In fact, the program expects to deplete its trust fund by 2035. After that, the government would either have to reduce Social Security payouts or increase taxes.
That’s a scary thought for anyone hoping to rely on the program in retirement.
But where there’s a growing trend, there’s also a profit opportunity.
It’s no secret that as people get older, they tend to require more support from the healthcare system. The fact of the matter is aging bodies are more prone to injuries and chronic diseases.
And that means spending on healthcare is likely to keep increasing…
The Key to Profiting From This Growing Trend
Since health services are essential, they’re also insulated from the ups and downs of the economy. That makes them strong, stable, defensive picks in times of recession and market volatility.
It’s no wonder some of the strongest dividend growers are healthcare stocks. Some examples of these long-standing companies include:
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Abbott Laboratories (ABT): Abbott produces medical devices and lab equipment and has been growing its dividend for 50 years.
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Cardinal Health (CAH): Cardinal Health is one the largest distributors for healthcare products in the country and has increased its dividend for 29 years.
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Becton, Dickinson and Company (BDX): Becton Dickinson produces medical supplies and equipment for hospitals and laboratories. It’s been growing its dividend for 50 years.
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Stryker Corporation (SYK): Stryker specializes in surgical equipment and medical devices and has been growing its dividend for 29 years.
And my favorite healthcare company is one we hold in our Intelligent Income Investor portfolio. It has been increasing its dividend since 1962 – for 60 consecutive years. (You can learn more about how to access its name here.)
As Americans grow older and their healthcare needs ramp up, there’s sure to be more demand for the products and services these companies provide. And the best way to profit from them is by supplementing your income with the most resilient companies in the space.
Dividend-paying healthcare companies could support not only your physical well-being, but your financial security as well.
And by adding them to your portfolio today, you can use the silver tsunami trend to help fortify your retirement.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily