Alright so lets unpack this argument, because (1) this is a pretty extreme oversimplification, and (2) the unstated suggestion you make is to quite literally let millions of people die world-wide who wouldn't have otherwise:
> Data is showing that the infection fatality rate is around 0.5%-1%, and is concentrated in older people.
right, "old" (65+?) people are going to die anyway, lets just let them die sooner. How much sooner? Years? Decades? Does this really sound like a cogent counterargument to not letting people die?
Let's ignore the morality aspect of this, which I don't think is in your favor, to put it mildly. I don't really like people suggesting that millions of people should die because "this is sad, but at some point, everyone has to die." Yikes.
But lets pretend we live in a very nauseating reality where older people don't really matter very much. You should still want society shut down to prevent this spreading out of hand because this will easily and thoroughly overwhelm all of our healthcare resources, which will mean hundreds of thousands of people you actually do care about (i.e. non-older people) will also die from lack of medical care either from COVID, pre-existing medical conditions, new medical conditions, etc.