By 2050, the global population aged 60 and above is expected to reach 2.1 billion, nearly doubling current levels, driven by rising life expectancy. At the same time, declining fertility rates across many regions are reshaping demographic structures, posing long-term challenges for economic sustainability. n nThese shifts place growing pressure on healthcare systems, retirement frameworks, and labor markets. With fewer younger individuals entering the workforce, businesses may face talent shortages that hinder expansion and weaken GDP growth. This gradual but profound transformation, though less dramatic than sudden crises, demands urgent strategic planning from both public institutions and private enterprises. n nAs CEO of Mercer, I’ve engaged with executives and policymakers in over 20 countries. A shared concern has emerged: how to adapt to longer lifespans. Data confirms the scale—by mid-century, 2.1 billion people will be 60 or older. While longer lives are a triumph of modern medicine and development, they coincide with shrinking working-age populations, creating structural imbalances. n nHealth systems will face increased demand as more individuals live with chronic conditions for extended periods—often spanning over 20% of their lives. Public healthcare infrastructures may become overburdened, requiring private sector involvement to maintain access and quality. Employers can play a pivotal role by enhancing health benefits, promoting preventive care, and offering long-term care insurance. Workers trust employers as a reliable source for affordable healthcare, making companies well-positioned to support aging employees and reduce strain on public services. n nAdditionally, caregiving responsibilities often fall on adult children—disproportionately women—who may need to leave or reduce work hours. This further reduces labor participation and economic output. Employers can mitigate this by designing supportive policies, including flexible schedules and eldercare resources. n nTo sustain productivity with a smaller or older workforce, technology adoption—especially artificial intelligence—can help bridge gaps. Reskilling, job redesign, and automation can empower older workers to remain active contributors. Governments can support this transition through incentives. For example, Singapore’s Part-Time Re-employment Grant encourages employers to retain senior staff in flexible roles. In Denmark, over one-fifth of workers participated in adult education programs in 2023, while France offers lifelong learning accounts for continuous skill development. n nRetirement systems also face mounting stress. Without reform, hundreds of millions could face poverty in old age, undermining consumer spending and economic stability. Women are especially vulnerable, often living longer, earning less, and taking career breaks for caregiving. In some developed nations, men may outlive their savings by a decade; for women, the shortfall can extend to 19 years. n nSolutions include mandatory, high-quality investment vehicles tailored to life stages. The Netherlands has shifted from defined benefit to defined contribution pensions, improving system sustainability. Chile adjusted its retirement policy to reflect women’s longer lifespans, allowing them to qualify for benefits after 10 years of contributions, compared to 20 for men. n nThe World Economic Forum, in collaboration with the OECD and AARP, has launched a learning initiative involving over 50 global employers such as AIG, Allianz, and Mercer—representing more than two million workers and $1 trillion in revenue. The goal is to integrate older workers as a strategic asset, countering the myth that productivity declines with age. n nInnovations in financial policy, like the UK’s Mansion House Accord, aim to boost long-term investment returns for savers by expanding access to private markets. Such reforms are essential to meet citizens’ extended financial needs in an era of longevity. n
— news from The World Economic Forum
— News Original —
Ensuring workers and economies thrive as longevity increases
By 2050, the number of people aged 60 and older is forecast to hit 2.1 billion – nearly double today’s figure – thanks to longer life expectancies. n nHowever, this rise in life expectancy is accompanied by falling fertility rates in many parts of the world, with significant implications for economies. n nPublic and private sectors should work together to develop strategic responses to increased longevity in three key areas: healthcare, workforce and retirement. n nSince becoming CEO of Mercer, I’ve travelled to more than 20 countries and met with C-suite executives and policy-makers worldwide. One topic they consistently bring up – and can universally relate to – is increasing longevity. n nThat may surprise most people, but it doesn’t shock me. n nFor years, Mercer has been following statistics on longevity. By 2050, the number of individuals aged 60 and older is projected to reach 2.1 billion – nearly double today’s figure. n nThe rise is driven by significantly longer life expectancies than in previous generations. This is great news, but because it’s happening alongside falling fertility rates in most parts of the world, it comes with implications that we need to watch closely. n nAgeing workforce testing retirement and healthcare systems n nA ballooning older population will test the readiness of both retirement and healthcare systems. And without enough young people to replace older, retiring workers, companies will struggle to fill the jobs they need to grow their businesses and fuel GDP growth. n nWhile this increased lifespan-lower fertility double punch lacks the urgency of a wildfire or the excitement of the latest AI innovation, this slow-moving trend is setting us up for major social and economic crises if we don’t act fast. n nHave you read? n nLiving Longer, Better: Understanding Longevity Literacy n nUnfortunately, it’s clear the business community is not properly prepared. According to Mercer’s 2025 Executive Outlook Study, 80% of executives believe they can be doing more to mitigate the risks of an ageing workforce. n nWhat’s the answer? I believe the only way we can ensure that living longer is a boon to economies rather than a burden is to ensure that the public and private sectors work together to develop strategic responses in three key areas: healthcare, workforce and retirement. n nLong lives can still be healthy lives n nIt’s a fact of life that as we age, we become increasingly susceptible to health problems. In the future, many people will live with a chronic illness for at least one-fifth of their lives. n nAll of this will place growing demands on healthcare and long-term care systems around the world, impacting quality and access for patients everywhere. When state-funded healthcare systems become too burdened, the private sector will have to pick up the slack to keep older workers healthy. n nReduced resources may also increase pressure on those who are often the primary caretakers of the sick and elderly – their adult children, and more often women, who may be forced to take time out of the workforce. n nBusinesses will need to carefully examine their employee benefit plans. By offering comprehensive health benefits and encouraging preventive healthcare, employers can help sustain a more productive and engaged older workforce and support younger generations’ ability to work and save for longer. n nEmployers can also help their employees plan for longer-term elder care, whether for themselves or loved ones, by offering access to long-term care insurance. According to employees, employers are the most trusted source for affordable, quality healthcare worldwide, making them well-positioned to offer this coverage. And it eases the pressure on public care systems. n nCreating the multi-generational workforce of tomorrow n nLower birth rates will ultimately lead to fewer people entering the workforce. To remain efficient and keep the world’s economies strong, we need to get creative. n nOne solution is to find ways to entice older workers to stay in, or return to, the workforce. Phased retirements, job-sharing programmes and flexibility with hours and location would all appeal to this demographic. n nTo boost productivity through a smaller workforce, or an older one that is working less, technology, particularly artificial intelligence (AI), can play a significant role. Employers need to augment with AI and prioritize reskilling, training and reconstructing jobs. n nGovernments can also consider incentives to encourage retirees to re-enter the workforce or retrain for new jobs. Singapore introduced a Part-Time Re-employment Grant in 2020 as part of a Senior Worker Support Package. This incentivizes employers to offer part-time re-employment or other flexible work arrangements to senior workers. n nThe Danish government invests significantly in education and training, with more than 20% of the workforce participating in adult education programmes in 2023. Similarly, France offers lifelong “learning accounts” that citizens can use to get credits for reskilling or professional training at any point in their lives. n nRethinking retirement amid increased longevity n nIncreased longevity places pressure on retirement systems to support longer lifespans. Without robust retirement systems, hundreds of millions of retirees could face poverty by 2080, resulting in reduced spending and lower GDP. n nThe situation is most dire for women, who often live longer, earn less and take more time away from their careers to care for families. While men are on track to outlive their retirement savings by a decade in some developed economies, the number is even higher for women, at 12 to 19 years. n nWhether through their employers or government systems, people living longer should save through compulsory high-quality investment vehicles and strategies designed for different stages of life. n nLoading… n nSome pension systems aren’t ready to fund a population with an increasing number of retirees without reforms. Others can provide lessons for the rest of the world. n nThe Netherlands recently increased the sustainability of its pension system, transitioning from a defined benefit, or guaranteed retirement benefit, to a defined contribution system where an individual’s final pension benefit depends on their individual contributions. n nIn Chile, policy-makers adjusted for women’s longer lifespans by allowing women to receive retirement benefits after just 10 years of retirement contributions (vs. 20 years for men). n nDiscover n nWhat is the World Economic Forum doing about including older people in the workforce? n nThere is a global myth that productivity declines as workers age. In fact, including older workers is an untapped source for growth. n nThe world has entered a new phase of demographic development where people are living longer and healthier lives. As government pension schemes are generally ill-equipped to manage this change, insurers and other private-sector stakeholders have an opportunity to step in. n nLoading… n nThe World Economic Forum, along with the Organisation for Economic Co-operation and Development (OECD) and AARP, have created a learning collaborative with over 50 global employers including AIG, Allianz, Aegon, Home Instead, Invesco and Mercer. These companies represent over two million employees and $1 trillion in annual revenue. n nLearn more in our impact story. n nFinancial sector and public policy innovations like the UK’s Mansion House Accord, which facilitates UK savers’ access to higher potential net returns from investment in private markets, enable countries to better meet the long-term financial needs of their citizens.