The ageing populations around the world is now a long-standing “global mega-trend”, but investors may not be making the most of the opportunities it presents, argues Fidelity International.

Last week the UK’s Department of Work and Pensions issued a report showing that a staggering 30 per cent of babies born today will live past 100, and according to Fidelity International these changing demographics have thrown up a wealth of investment opportunities.

The downside of the ageing populations trend is of course the additional strain it will put on many national governments' coffers, however Fidelity believes some of the benefits and opportunities afforded by the so called “silver economy” are less well appreciated.

Fidelity notes that the retirees of today and tomorrow differ from their predecessors in that they are wealthier, more educated, more active and more used to consuming than in the past.

Fidelity believes that this will fuel growth in several sectors, primarily healthcare and financials. The boost to the healthcare sector from ageing populations is obvious: people may be living longer, but their bodies will inevitably have greater healthcare needs. As more and more people in the US and other developed countries swell the older age brackets Fidelity expects that total expenditure (both private and public) on healthcare will continue rising.

This will of course be beneficial to product manufacturers and providers of healthcare services and facilities, however, investors should be looking at the types of drugs firms make to invest to greatest advantage. Among drug manufacturers, the ageing process will naturally be most beneficial for those companies that are more targeted towards diseases that are more prevalent in older age groups, Fidelity says.

Turning to financial services, Fidelity believes that the growing number of older people is a secular positive for several areas. Ageing populations bode well for asset managers, financial advisory firms and insurance firms that have a strong presence in the retirement and pre-retirement markets, the firm says.

The firm further points out that the pricing structure for many investment products and related services is often linked to the size of assets. This is important, Fidelity says, because, on average, asset sizes are likely to be higher in the future because of the increasing accumulated wealth of retirees (relative to past generations) and because increasing longevity in retirement will necessitate greater saving for retirement.

Looking to other sectors, Fidelity points out that the older people of today tend to be more active than in the past and this is a good sign for firms like those running cruise liners. Elsewhere, more people living into old age will clearly be positive for firms that specialise in providing care services and assisted living facilities for the elderly, the firm believes.