In today’s evolving economic landscape, the World Economic Forum (WEF) sheds light on the pressing issues and opportunities surrounding the longevity economy. With a focus on empowering older workers and fostering inclusive workplaces, the WEF, in collaboration with Mercer, offers invaluable insights and principles to guide employers in unlocking the full potential of the ageing workforce.
The longevity economy, characterized by increasing lifespans and shifting demographic trends, presents both challenges and opportunities for employers worldwide. As individuals live longer and birth rates decline, organizations are tasked with reimagining their approaches to workforce management and retirement planning.
The collaborative efforts of industry leaders have resulted in the development of six fundamental principles for the longevity economy:
- Ensuring financial resilience across key life events.
- Providing universal access to impartial financial education.
- Prioritizing healthy ageing as foundational for the longevity economy.
- Evolving jobs and lifelong skill-building for a multigenerational workforce.
- Designing systems and environments for social connection and purpose.
- Intentionally addressing longevity inequalities across gender, race, and class.
Implementing these principles requires a concerted effort from stakeholders across public and private sectors, as well as civil society. Employers, in particular, have a pivotal role to play in shaping the future of work and retirement.
Key Areas of Impact for Employers:
- Protecting workers from financial vulnerability: Addressing concerns related to financial stability is paramount, as individuals navigate the complexities of planning for retirement amidst increasing life expectancies. Financial education and employer support are essential components in promoting employee wellbeing and productivity.
- Promoting healthy ageing in the workforce: Prioritizing healthy ageing initiatives not only enhances employee wellbeing but also contributes to sustained productivity levels. As the ageing population places greater demands on healthcare systems, preventative measures and social support networks become increasingly crucial.
- Enabling longer working careers: With an estimated $5 trillion in potential economic output from older workers, organizations must embrace strategies to facilitate longer and more fulfilling careers. Reskilling initiatives and inclusive workplace policies can help harness the wealth of experience and expertise older workers bring to the table.
- Addressing inequalities and barriers: Overcoming systemic barriers across gender, race, and socioeconomic class is imperative to ensuring equitable access to health and retirement outcomes. By promoting inclusivity and diversity, employers can create environments that foster collaboration and innovation.
Opportunities and Challenges:
- Increasing lifespans necessitate innovative approaches to retirement planning and healthcare provision.
- Employers play a crucial role in enabling longer careers through flexible employment opportunities and supportive policies.
- Financial education and access to suitable savings and investment options are vital for retirement planning.
- Addressing disparities in health and wealth outcomes is essential for promoting social equity and inclusivity.
By embracing the realities of the longevity economy, employers can cultivate a more resilient, inclusive, and productive workforce. Through strategic initiatives and collaborative efforts, organizations can harness the potential of older workers and contribute to building a healthier, more sustainable future for all.
Source: How employers can make the most of the longevity economy | World Economic Forum (weforum.org)