by FAN Yicheng

With more than a third of its population aged 60 or above, Shanghai is accelerating efforts to recast deep aging as a new source of consumption and growth.

By the end of 2024, people aged 60 and above accounted for 37.6% of Shanghai’s population, the highest share among China's megacities, according to official figures. As the city's population ages, policymakers are increasingly treating ageing as both a social and economic issue.

The shift surfaced at Shanghai's annual "two sessions" — the yearly meetings of the Shanghai Municipal People's Congress and the Shanghai Chinese People's Political Consultative Conference (CPPCC) — where officials and political advisers discussed policy priorities for the year ahead.

Small subsidies, large spillovers

One of the measures Shanghai has adopted is the rollout of so-called "silver vouchers", officially elderly care service consumption subsidies, following earlier pilots.

The e-vouchers target seniors with moderate to severe disabilities and can be used to offset part of the cost of home-based, community or institutional care, covering services such as meal delivery, bathing assistance, rehabilitation and assistive-device rentals.

"The idea is to stretch limited public spending much further," said YAN Ming'ai, a deputy to the Shanghai People's Congress and head of a local elderly care service provider.

SHAO Nan, a member of the Shanghai CPPCC, estimated that 300 million yuan in fiscal spending could generate as much as 8 billion yuan in related consumption.

Yan cautioned that the current design does little to stimulate demand among healthier, more active older residents. She suggested expanding eligible spending to daily consumption and leisure services, encouraging senior-oriented shopping, fitness and wellness travel.

CHEN Qiyu, co-chief executive of Fosun International and a CPPCC member, also called for pilot schemes allowing medical insurance to support innovative medical and elderly care devices, paired with subsidies to speed up adoption.

From care to quality ageing

Shanghai's first silver-themed retail store, which opened late last year, offers a glimpse of how elderly consumption is evolving.

The experiential showroom sells smart assistive devices, age-friendly furniture, health food and senior entertainment products. Within two weeks of opening, sales exceeded 300,000 yuan, while service orders for home modifications topped 550,000 yuan, underscoring demand for offline experience and after-sales support among older consumers.

The trend extends beyond Shanghai. In the first half of 2025, revenue from smart elderly care services and wearable devices nationwide rose by more than 30% year on year, as technology increasingly reshapes how seniors spend.

A sunrise industry

Over the next five years, Shanghai has made stimulating silver consumption part of its broader strategy to expand domestic demand.

YAN Hongzhong, a People's Congress deputy and economics professor, said the city faces deepening ageing and gaps in elderly services, even as large pockets of senior demand remain untapped. He said the silver economy could underpin growth while creating jobs, especially in elderly care.

At the end of 2024, Shanghai rolled out a policy package to promote the silver economy, while business groups have since called for dedicated legislation to spell out development goals and support measures.

"The silver economy is no longer just welfare-driven," said a private equity investor. "It's starting to look like a business with real returns."

For Shanghai, already living with deep ageing, the task now is whether it can translate demographic pressure into sustained growth — and serve as a test case for other Chinese cities facing similar pressures.