Andrew Gill, Funds Manager at TIME Investments.
In recent years, the global investment conversation has been dominated by the hunt for short-term returns, and the allure of digital assets. Yet beneath the surface, a profound structural shift is reshaping long-term capital flows. The driver is demographic: with people living longer, this is changing how investors think about risk, reward, and resilience.
By 2030, one in six people worldwide will be aged 60 or over, and by 2050, that figure will more than double to 2.1 billion.1 Longer lives mean significantly longer retirements. This places increased demand on pension systems and individuals’ private savings, requiring investment strategies that can deliver not just growth, but dependable, income over the long term that has a high rate of inflation resistance.
Japan offers an early glimpse of what this future looks like. About 30% of its population is already over the age of 65, the highest proportion in the world.2 That has re-weighted domestic investment strategies towards stability and durability, with many investors paying increasing attention to real assets such as property and infrastructure. The UK is on the same path and is a prime example of how demographics and policy can combine to make tangible investments more attractive.
A demographic shift
The UK’s population is ageing steadily. In 2022, around 19% of residents were aged 65 or over, up from about 13% fifty years earlier.3 Projections suggest this change will only grow in future decades. Combined with cost-of-living pressures, and an insecure economic outlook, this further increases the need for reliable methods to fund retirement.
Traditionally, as people near retirement, pension portfolios shift toward fixed income investments like bonds, reducing exposure to equities. However, with inflation remaining high, most bond income streams are fixed, so these strategies may struggle to keep up with rising costs. For those living on a fixed retirement income, maintaining purchasing power becomes essential. Real assets, such as property, infrastructure, or inflation-linked instruments, can help address this challenge. These investments often have income streams that adjust with inflation, making them a useful addition to a portfolio aiming to preserve value and generate stable income in today’s economic climate.
Infrastructure as a National Priority
The UK government is already signalling where the opportunities lie. In September 2024, data centres were recognised as Critical National Infrastructure, reflecting their central role in the digital economy.4 The move comes alongside planning reforms allowing certain projects to be designated as Nationally Significant Infrastructure Projects, streamlining approvals. Similar legislation, such as the Infrastructure (Wales) Act 2024, is designed to accelerate delivery of essential infrastructure.
Demand is strong. The UK’s data centre capacity is expected to nearly double by 2028, fuelled by the rapid expansion of AI and cloud services.5 Global market projections suggest the sector, valued at USD 14.6 billion in 2023, could reach over USD 66 billion by 2035.6 For investors, this is not simply about technology, but the physical assets underpinning that technology: facilities, power infrastructure, and networks that will be indispensable for decades to come.
Tangible Advantage
These shifts underscore why property and infrastructure are increasingly central to retirement-focused portfolios. They are physical assets with cash flows from rents, usage fees, or regulated revenues, standing in contrast to speculative or virtual investments. In an era when cryptocurrencies and other digital instruments fluctuate in value, tangible assets offer something more enduring: visibility, resilience, and contribution to the real economy.
Crucially, they also stand on their own feet; a compelling offer for investors seeking independence and stability. Infrastructure projects and property investments often generate their own revenues, making them less reliant on subsidies or state intervention.
Fundamental Reorientation
The result is a reorientation in investment approaches. Driven by demographics, the demand for long-term, reliable returns is nudging portfolios away from transient bets and towards tangible assets with real economic weight.
In the UK, this shift aligns with national priorities. Investment in property and infrastructure not only secures retirement income, but also delivers wider benefits: fuelling housing demand, digital transformation, job creation and local growth. These assets deliver both private security and public value.
At TIME Investments, which specialises in infrastructure and property funds, we view this as more than a passing trend. It is the natural evolution of investment in an ageing society: a recognition that the assets which endure are the ones that matter most. As the UK grapples with demographic change and the infrastructure demands of a modern economy, tangible investment stands ready to provide the answer: durable returns for individuals and a lasting foundation for growth.
Footnotes
1 World Health Organization, October 2025
2 World Bank Group, 2024
3 UK Parliament, House of Commons Library, July 2024
4 Global Infrastructure Investor Association, August 2025
5 GlobeNewswire, March 2025
6 Market Research Future, September 2025
Important information
TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP with its registered address at 338 Euston Road, London, NW1 3BG. TIME Investments is authorised and regulated by the Financial Conduct Authority (FCA number 534723).
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Personal opinions may change and should not be seen as advice or a recommendation.
This article does not constitute investment advice and potential investors are recommended to seek professional advice before investing.
