A] Prelude*
* For more general information about pension systems and risk, feel free to visit our dedicated webpages:
https://expatpensionholland.nl/global-pillars-systems
https://expatpensionholland.nl/global-investments-risks-0
In an era where global life expectancy continues to rise, fertility falls and countries are shrinking demographically, the World Economic Forum’s new Longevity Economy Principles are not just timely—they’re essential.
These principles are designed not just to navigate the challenges ahead, but also to get prepared to seize the opportunities presented by a new era of longevity and generational rebalancing.
In the next society, both countries and companies will want to ensure three inter-related foundational skills for their populations and workforces: financial resilience, healthy ageing, and social inclusion.
The Forum’s Lead on the Longevity Economy, Haleh Nazeri, is the motor behind the principles. She notes during a 4-Quarter Lives podcast, that there are two ways of addressing the Longevity Economy: one as a disaster to be managed, the other as an opportunity to be leveraged.
She strongly promotes the latter. “This longer life expectancy gives us a chance to improve and innovate the way we have been running things for the past century,” she says. “Everything from our retirement and pension systems to the way we work and even the way we think about our health and friendships.”
These road maps for the arrival of the ‘second billion’ (additional number of people over 60 in the world by 2050) are much-needed accompaniments to an unprecedented human rebalancing.
This demographic shift demands a re-evaluation of how we approach ageing and longevity. The Longevity Economy Principles offer a strategic framework, addressing key areas such as financial stability, health, education, and social connections.
B] Innovating A New Paradigm of Ageing
1. Financial Resilience Across Key Life Events: Life is unpredictable. From career breaks to unexpected health issues, financial resilience is crucial. The WEF advocates for robust social safety nets and innovative financial products to help individuals navigate these challenges.
This requires collaboration between public policies and private sector innovations to prevent financial hardship and promote stability. Martine Ferland, former CEO of Mercer emphasizes that “the longevity economy is here, and organizations keen to stay ahead of this demographic shift will need to transform to support a dynamic, multigenerational workforce. Unlocking the potential of this demographic transformation is an integral way employers can support a healthier, more productive, and vibrant future for our economies and societies.
2. Embedding Financial Literacy: The WEF says only a third of people globally could be described as financially literate. This contributes to inequalities not just in wealth but also in life expectancy. Knowledge is power, especially when it comes to managing finances.
The WEF emphasizes the need for universal access to financial education. By improving financial literacy, individuals can make informed decisions that enhance their economic security and overall well-being. The model they cite is Singapore’s national MoneySense programme, started as far back as 2003, to help people “manage their money well.” Most countries are nowhere near as prepared.
3. Prioritizing Prevention for Healthy Aging: A longer life should also mean a healthier life. The principles advocate for shifting the focus of healthcare towards prevention and equitable access to medical services.
By promoting health maintenance over disease treatment, societies can ensure that people not only live longer but also enjoy a better quality of life. As Roy Gori, CEO of Manulife, points out: “We know people are living longer—but not healthier—lives. Health and well-being must be a global priority, and we are committed to doing our part to help our customers live longer, healthier, and better lives.
The Longevity Economy Principles outline ways companies like ours can contribute to scaled solutions, innovation, and new ways of operating to contribute to a more sustainable future.”
4. Evolving Jobs and Enabling Lifelong Skill Building: “A quarter of people aged 55 and older want to work in old age, but face barriers in finding opportunities,” notes the WEF. In a world where careers are spanning ever-lengthening decades, companies will want to integrate this workforce.
Allowing people to work beyond retirement ages and facilitating return to work after career breaks. Continuous learning will become the essential means to enable this. The WEF calls for both job structures and educational systems to adapt. Lifelong learning and skill development must become more continuous, enabling older workers to remain engaged and productive – at every age and stage.
5. Designing In Social Connection and Purpose: Social isolation is a growing concern in aging populations. The principles highlight the importance of fostering environments that promote social connections and a sense of purpose. This approach is vital for mental and physical health, ensuring that individuals feel valued and engaged in their communities.
Marco La Marca, Cabinet Member of the European Commission, insists “we must create a society where everyone, regardless of age, can thrive and enjoy the benefits of demographic change. As we navigate this transition, we must embrace the longevity society and economy.”
6. Addressing Longevity Inequalities: Inequalities in aging, whether based on gender, race, or class, must be addressed. The WEF advocates for targeted actions to reduce these disparities, ensuring that the benefits of longer life spans are accessible to everyone.
These six principles have garnered support from leading private and public sector organizations across various sectors. Over 35 institutions have signed on, including Mercer, Manulife, BlackRock, and the European Commission. These organizations are taking concrete actions such as designing age-inclusive employee value propositions and developing innovative financial products to support an aging population.
C] Cross-Sectoral Public/Private Collaboration
A good complement to the WEF’s guide is the 10-point Charter published recently by France’s Club Landoy, where the country’s leading CEOs came together to publish guidelines for how to proactively integrate and develop their 50+ workforces.
Academic institutions like the Stanford Center on Longevity’s New Map of Life work and MIT’s AgeLab, along with organizations such as the Global Coalition on Aging, are integrating these principles into their research and advocacy efforts. This multi-sectoral approach ensures a comprehensive strategy that addresses the diverse aspects of aging.
The longevity economy is now upon us, and it’s reshaping our world. “Helping individuals be financially resilient over a longer life will take a collaborative effort from the public sector, private sector, and civil society,” notes Nazeri. “The work is beginning, but it needs to be accelerated in the coming years.”
The WEF’s Longevity Economy Principles provide a roadmap for navigating this new reality. By fostering financial resilience, promoting healthy ageing, and addressing inequalities, countries and companies can build a future where longer lives are synonymous with better lives.
Adapting to this new era of longevity will mean redesigning systems to support all generations. By working together, we can ensure that everyone has the opportunity to live healthy, financially secure, and purposeful lives, no matter how long they are.