The world is on the brink of a demographic shift that will redefine societies, economies, and the way we approach various aspects of life. According to a new white paper released by the World Economic Forum (WEF), the global population of individuals over the age of 60 is set to double to 2.1 billion by 2050, up from one billion in 2020. This seismic demographic transformation requires proactive measures from governments, businesses, and civil society to ensure the resilience and sustainability of societies over the long term.
The World Economic Forum’s (WEF) Longevity Economy initiative, developed in collaboration with Mercer and more than 35 organizations representing various sectors, emphasizes the need to address the demographic and financial realities of aging. The initiative has established six longevity principles aimed at supporting individuals in thriving during their longer lives. These principles focus on financial resilience, healthy aging, access to employment and learning opportunities, and living a purposeful life at all stages.
The first principle calls for ensuring financial resilience across key life events. Many individuals could risk outliving their retirement savings by up to 20 years, highlighting the need for financial planning that extends well into one’s senior years. To achieve this, the initiative encourages businesses, governments, and civil society to prioritize financial education and provide universal access to impartial financial guidance.
The second principle emphasizes the importance of healthy aging as foundational for the longevity economy. It recognizes the significance of maintaining good health throughout one’s life to ensure an active and fulfilling older age. Governments and businesses are urged to prioritize healthcare, preventive measures, and lifestyle choices that contribute to overall well-being.
The third principle focuses on evolving jobs and lifelong skill-building for a multigenerational workforce. As people live longer, there is an increasing need to adapt employment opportunities and education systems to accommodate individuals of various ages. The initiative encourages the development of age-inclusive workplaces and educational programs that support continuous learning.
The fourth principle underscores the need for designing systems and environments for social connection and purpose. Social isolation can be a significant challenge for older individuals, impacting their mental and emotional well-being. The initiative calls for creating inclusive communities that foster social connections and provide opportunities for purposeful engagement.
The fifth principle addresses longevity inequalities, emphasizing the importance of addressing disparities across gender, race, and class. It urges governments and organizations to intentionally consider inclusivity in policies, programs, and services to ensure that the benefits of longevity are accessible to all.
The sixth principle calls for providing universal access to impartial financial education. Financial literacy is crucial for individuals to make informed decisions about their savings, investments, and retirement planning. The initiative encourages governments, businesses, and civil society to prioritize financial education initiatives that are accessible to everyone.
Several organizations, including Mercer, Manulife, Zurich, BlackRock, and the European Commission, have committed to taking concrete actions aligned with these longevity principles. These actions span various industries and involve innovating in investment vehicle design, broadening access to financial education, developing age-inclusive employee value propositions, and using the principles as a framework for service delivery and advocacy.
The Longevity Economy initiative is part of the World Economic Forum’s (WEF) Centre for Financial and Monetary Systems. It signifies a collective effort to navigate the challenges and opportunities presented by the aging global population. As societies adapt to this demographic shift, collaboration and proactive measures will be crucial to ensuring a sustainable and resilient future for all individuals, regardless of age.