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This article is brought to you thanks to the collaboration ofThe European Stingwith theWorld Economic Forum.
In 2020, 1 billion people were aged above 60. By 2050, this number will have more than doubled to2.1 billion. For individuals to thrive in their longer lives, an intentional focus on financial resilience and a societal transformation on how businesses, governments, civil society and individuals understand and view ageing is essential.
In support of this goal, the World Economic ForumsLongevity Economyinitiative has established six longevity principles to address the demographic and financial realities of global ageing.
The principles focus on how societies can ensure all individuals meet their financial needs, enjoy a healthy life, access employment and learning opportunities and live purposefully at each stage.
The Longevity Economy Principles tackle these challenges by defining the necessary actions societies and economies must take to prepare for the coming demographic transformation.
Over 35 leading organizations have shown their support for the Longevity Economy Principles and have committed to taking action within their organizations to support healthy, prosperous multi-stage lives. These include organizations across the public and private sector, as well as academia and civil society companies including like Mercer, Manulife, Blackrock, Bank of America, HSBC, Allianz, the European Commission, Stanford Center on Longevity, MIT AgeLab, National Coalition on Aging, and Phoenix Insights.
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Demographic ageing is profoundly affecting the global economic and social fabric. While longer life expectancy is remarkable, countries and individuals cannot fund these extra years.
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.Marco La Marca, Cabinet Member of the European Commission.
If ageing-related fiscal policies do not change, the average government will run agross domestic product deficit of 9.1%by 2060, compared to 2.4% in 2025. At the individual level, most people globally will outlive their retirement savings by betweeneight and almost 20 yearson average.
Moreover, policies on ageing widely vary across borders and topics that are perceived to be taboo or delicate to discuss, such as death, money and ageism, while racial, socioeconomic and gender inequalities are at the crux of this conversation.
The Longevity Economy initiative convenes global leaders from business, government, academia and civil society to raise the profile of the longevity discussion and promote cross-industry collaboration.
To attain a certain quality of life in old age, significant efforts are required from individuals, employers, financial services providers, and governments,Rich Nuzum, Executive Director of Investments and Global Chief Investment Strategist, Mercer.
This global coalition aims to address the growing demographic challenges of an ageing population and the financial implications for the global economy and guide individuals to be resilient in their longer lives.
There are three phases of the initiative:
The first phase of the initiative focused on personalized life plans, a holistic approach to planning for the 100-year life and private sector solutions such as phased retirement programmes and flexible working options.
The three principles of longevity literacy are quality of life, financial resilience and purpose. Together, this literacy empowers individuals to live a healthy and sustainable life with dignity and purpose while building resilience to address the challenges of an evolving world.
The third and current phase aims to expand public-private cooperation and elevate the longevity discussion as a global economic and societal priority through a set of Longevity Economy Principles.
Building a financially resilient society for a globally ageing population is a collective endeavour that requires collaboration alongside the public sector, private sector, civil society and individuals. The Longevity Economy Principles provide a framework where all stakeholders can work together to build a future where all generations lead healthy lives with purpose, financial resilience and social connection.
For each of the six principles below,the Longevity Economy Principles: The Foundation for a Financially Resilient Futurereport outlines the case for action, provides examples of the principle in practice across different sectors, and details opportunities for public-private collaboration and impact.
TheLongevity Economyinitiative is part of the ForumsCentre for Financial and Monetary Systems.
Companies and organizations are invited to pledge their commitment to the Longevity Economy Principleshere.
If you are interested in joining the initiative or learning moreplease contact us.
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