La Réunion's Aging Population Expected to Transform Economy by 2050

A new report from the Insee has outlined significant economic shifts poised to impact La Réunion by 2050 due to its aging population. Published on October 2, 2025, the report indicates that the number of seniors on the island exceeded those under 20 in 2020 and is projected to reach approximately 371,000 seniors by 2050, including a tripling of individuals aged 75 and older.

The demographic changes signify a moderate growth in the working-age population, which will restrain the influx of new workers into the job market. Although activity rates are expected to rise among those aged 50-64, the overall contribution of new senior workers will remain limited. According to Insee, “the number of employed or seeking employment seniors will rise only slightly.” This indicates a looming challenge for local employment sectors as the senior demographic expands while the working-age cohort stabilizes.

As the population ages, the structure of households is likely to evolve. Current projections suggest that changes in this age structure could result in higher incomes per capita, supported by increased pension levels linked to improved employment rates and qualifications among the elderly. However, the shift in household consumption patterns will lean towards more service-oriented expenditures rather than imported goods, reflecting changing needs and preferences within the older demographic.

Moreover, the report highlights a critical increase in dependency ratios, projecting that dependency-related public expenses may double by 2050. As the number of dependent seniors grows while the number of potential family caregivers diminishes, there will be an escalating demand for personal and home care services. Such a scenario necessitates careful planning and strategic investment in services to address the challenges posed by an aging society.

Overall, La Réunion faces a unique economic landscape shaped by demographic trends, necessitating proactive measures to adapt to the consequences of an aging population by the year 2050. Stakeholders are urged to consider these trends for effective policy formulation and resource allocation moving forward.