It was highly symbolic. In the space of a few days, France went from having the youngest prime minister of the Fifth Republic, 35-year-old Gabriel Attal, to the oldest, Michel Barnier, 73. Beyond the political context, this change carries a particular significance at a time when the country is quietly going through a profound transformation: It is aging – and quickly. To prove the point, centenarians, rare 30 years ago, are now almost commonplace: There are around 30,000 of them in France, 30 times more than in the 1960-1975 period. By 2070, according to projections by the French National Institute for Demographic Studies, there will be almost 200,000.

In a greying world, France is no exception. On January 1, 2024, more than one in five inhabitants (21.5%), or 14.7 million people, were over 65. This proportion has been rising for more than 30 years, according to the French National Institute for Statistics and Economic Studies (INSEE), in its demographic report published on January 16. This aging trend has been accelerating since the mid-2010s, as the particularly large baby-boom generation has reached their 60s. By 2070, the over-65s will represent 29% of the population, compared with less than 13% in 1970.

At the same time, the birth rate is falling. In 2023, France recorded 678,000 births, 20% fewer than in 2010. Proportionally, therefore, there are more old people. Moreover, the rise in life expectancy further skews the age pyramid upward. In 2010, a baby boy born in France had a life expectancy of 78 years, and a baby girl 84.6 years. By 2023, that figure had risen by two years for boys and a little over one year for girls. Medical advances have also improved the likelihood of remaining healthy into old age: A woman aged 65 now has a “disability-free life expectancy” of 12.6 years, while a man has 11.3 years.

While we can all rejoice in the fact that we’re living longer and longer, this profound transformation is fraught with social and economic consequences. A country with an aging population generates structurally less growth, as consumption tends to decline with age. Additionally, there is more saving at the expense of investment. Productivity, the fuel for growth, tends to rise until the age of 50-55 and then starts to decline.

While the link between age and innovation is difficult to establish clearly, research published in the United States suggests that companies innovate more in regions with a younger workforce. Conversely, Yunus Aksoy and Tobias Grasl’s research shows that the number of patents filed decreases as workers age. The advancing age of French SME bosses (23% are over 60, according to INSEE) doesn’t help matters. Caught up in the search for a successor, many have little time to focus on innovations that will allow their business to win tomorrow’s markets.

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