China's initiative to develop a silver economy is set to significantly enhance the quality of life for its aging population. As the government turns its focus toward improving healthcare, housing, and technological services tailored for the elderly, the initiative serves as a response to the growing needs of this demographic.

According to data from the Ministry of Civil Affairs, by the end of 2024, there will be approximately 310 million people aged 60 and above in China, comprising 22 percent of the total population. Of this group, around 220 million will be aged 65 or older, marking a transition to a moderately aged society. This demographic shift is indicative of increasing demands within the silver economy, projected to reach over 30 trillion yuan, equivalent to about 4.22 trillion dollars, by 2035.

Despite the increasing demand for services tailored to the elderly, the supply-side transformations have not kept pace. Many upscale private nursing homes have vacant beds, while numerous elderly individuals suffering from disabilities lack access to adequate care. This disparity underscores the necessity for supply-side structural reforms that align supply with the evolving demands of the silver economy.

To bridge this gap, reforms must create a dynamic balance between demand and supply. This proactive approach would not only meet the expectations of millions of seniors seeking improved life quality but also facilitate the high-quality growth of the silver economy.

On the demand side, the silver economy is evolving to reflect higher quality expectations, increasing differentiation, and a greater need for integrated services. Seniors are increasingly less satisfied with merely fulfilling basic needs. Instead, they are seeking diverse, premium services that encompass health management, cultural experiences, and intelligent elderly care.

Market demand is also becoming more sophisticated, influenced by income levels, health conditions, educational backgrounds, cultural practices, and personal preferences. This evolution necessitates a departure from conventional 'one-size-fits-all' service models towards more tailored offerings segmented into basic, inclusive, and developmental categories.

Moreover, seniors are exhibiting a growing preference for comprehensive service systems that blend elder care, medical treatment, nursing, and cultural activities. This trend requires enhanced collaboration between sectors, ensuring a more coordinated effort in the provision of services.

Achieving precise alignment between supply and demand is crucial for enhancing efficiency within the silver economy. For this to be realized, it is vital to invigorate the market by harnessing the capabilities of varied participants. State-owned enterprises should function as foundational providers of basic and public services, while private companies need to focus on niche markets, exploring innovative growth areas such as smart healthcare solutions, eldercare finance, and age-friendly home modifications.

At the technological level, the need for innovation is evident. Age-friendly applications must evolve beyond simple adjustments to font size. Technologies should leverage feedback from senior users to create genuinely accessible and intuitive devices. Using big data to monitor health, income levels, and preferences can foster personalized service delivery, leading to more effective offerings.

Institutionally, adopting a people-centered approach to the silver economy mandates robust risk management measures encompassing funding, operations, and regulation. Oversight of financial operations must ensure the integrity of funding. Continuous evaluation of service quality is essential alongside strengthened inter-agency collaboration to enhance regulatory effectiveness in addressing issues like fraudulent practices.

The author of this analysis is a lecturer at the School of Public Finance and Administration at Tianjin University of Finance and Economics.