The Economics of Longevity: How Aging Populations Are Reshaping Global Markets

In a time when childbearing is down, countries are becoming smaller in population, and life expectancy is rising globally, the World Economic Forum's new Longevity Economy Principles are not just appropriate—they are crucial. These guidelines are intended to help you overcome the obstacles that lie ahead and position yourself to take advantage of the possibilities that come with a new era of longevity and generational balance. In the future, financial resilience, healthy ageing, and social inclusion will be three interconnected core competencies that nations and businesses will wish to guarantee for their citizens and labour forces.

The World Economic Forum's Longevity Economy Principles create a future in which living longer is equated with living better by encouraging financial resilience, encouraging healthy ageing, and resolving disparities. The strategy framework addresses important areas such as social ties, health, and financial stability.

Financial Resilience: Financial resilience is essential for unforeseen health difficulties as well as job pauses. Strong social safety nets and cutting-edge financial solutions to assist people in overcoming these obstacles. State policies and private sector innovations must work together to minimise financial hardship and foster stability. Employers can contribute significantly to a future for our economies and society that is healthier, more productive, and lively by realising the possibilities of this demographic change.

Developing Financial Literacy: When it comes to handling money, knowledge truly is power. The need for financial education to be accessible to everybody is enormous. People who are more knowledgeable about finance can make better judgements that will improve their general well-being and sense of financial stability.

 Considering Prevention for Healthy Ageing: A longer life ought to entail a better quality of life. The guiding principles support reorienting healthcare towards preventive and fair access to healthcare. Societies can guarantee that people live longer and have a higher quality of life by prioritising health maintenance above the treatment of diseases.

Changing Jobs and Facilitating Lifelong Skill Development: Businesses will seek to incorporate this workforce in a world where careers are becoming longer and longer. enabling people to work past retirement age and making it easier for those who have taken a professional break to return to work. Ongoing education will be necessary to make this possible. In order to support older workers in being engaged and productive at all ages and stages, lifelong learning and skill development must become more ongoing.

Including Social Connection and Purpose in Design: As the population ages, social isolation is becoming a bigger worry. The guiding principles emphasise how crucial it is to create settings that encourage interpersonal relationships and a feeling of direction. This strategy is essential for maintaining both physical and mental health as it makes people feel important and involved in their communities.

Resolving Inequalities in Longevity: Age-related disparities rooted in gender, race, or class need to be addressed. To ensure that everyone may benefit from extended life spans, certain measures must be taken to decrease these inequities.

Leading organisations in a variety of areas have endorsed these principles. The European Commission, Mercer, Manulife, and BlackRock are among the more than 35 organisations that have joined. To serve an ageing population, these companies are taking proactive measures including creating employee value propositions that are inclusive of age and creating cutting-edge financial solutions.

Redesigning systems to sustain future generations will be necessary to adjust to this new era of longevity. Together, we can make sure that everyone, regardless of lifespan, has the chance to have a healthy, stable, and meaningful life.

Bibliography

Masterson, V. (2024) These 6 ‘longevity economy’ principles can help an ageing population live well, World Economic Forum. Available at: https://www.weforum.org/agenda/2024/02/longevity-economy-principles-ageing-population/ (Accessed: 23 August 2024).