The age of opportunity: How to lead in the longevity economy 

The global economy stands at a demographic turning point. By 2050, the number of people aged 65 and older will reach 1.6 billion — equating to one in six people worldwide. In Europe and North America, this ratio will rise to one in four, while countries like Japan, South Korea and Italy will see it exceed one in three. At the same time, declining birth rates mean that one in four people now live in a country where the population has already peaked.

The implications are profound. Economic growth, workforce dynamics and social systems are all being reshaped by this demographic shift. Traditional life stages — education, work and retirement — are becoming more fluid, with individuals increasingly navigating multistage lives that include career changes, caregiving responsibilities and continued learning well into later years. This moment calls for a reimagining of what it means to work, age and contribute, ensuring that every life stage is honored and that individuals are supported in their economic roles over time.

This transformation presents both challenges and opportunities. Many retirement systems are under strain and financial security remains elusive for millions. Despite longer life expectations, many people often spend their later years in poor health or without sufficient support.

Workplaces are often where people earn, grow, save and make key life decisions. In this changing landscape, employers have a unique opportunity to take the lead.

Adopting a longevity-ready approach to work and benefits can enhance talent retention, boost productivity, reduce healthcare costs and strengthen employee engagement across generations. Organizations that proactively support longer working lives, prioritize preventative health and promote financial wellbeing are likely to be better positioned to attract top talent, meet evolving customer needs and build a resilient workforce for the future.

By reimagining how employers can support financial wellbeing, healthy living and career development across the lifespan, they can help shape a future where people of all generations not only live longer but thrive. 

Longer lives bring more transitions and increased financial complexity. Yet many employees often lack the tools required to effectively navigate retirement readiness, short-term savings and unexpected financial shocks. This challenge is especially relevant for lower-income workers, caregivers who are stretched for time and resources and those undergoing mid-career changes.

Employers can play a critical role in building financial resilience by offering solutions that adapt across life stages, including:

• Expanding access to retirement plans through auto-enrolment, behavioral nudges and matching contributions, ensuring that more workers can build savings throughout their careers

• Offering emergency savings tools and financial assistance to help employees manage short-term volatility without jeopardizing their long-term goals

• Supporting retirement decumulation planning to assist employees in converting their accumulated retirement savings into predictable income, instilling confidence in later life

• Providing personalized, AI-enabled financial education to support employees in making decisions around saving, budgeting, debt management and sustainable spending

• Extending support to gig and informal workers where possible, including voluntary savings tools, portable benefits and micro-pension schemes

Living longer doesn’t always mean living healthier for longer. Chronic conditions, mental health challenges and caregiving responsibilities can impact employees of all ages. In fact, 44% of employees have individuals relying on them for care, with 30% of those employees specifically caring for parents.

As caregiving demands rise — both for children and ageing relatives — organizations that offer flexible leave, care coordination and long-term financial protections for carers will be better positioned for success. By fostering a culture that supports caregivers, organizations can cultivate a more engaged workforce that feels valued, leading to improved retention and performance. Furthermore, recognizing seasoned workers as coaches and mentors enhances collaboration and facilitates knowledge sharing across generations.

A longevity-ready health strategy includes:

• Promoting preventive health through digital health tools, education, screenings and improved access to high-quality care

• Raising awareness and support for chronic condition management through focused programs and resources for managing high blood pressure, diabetes and high cholesterol 

• Alleviating the economic burden of caregiving through supportive policies, financial protections and workplace flexibility 

• Designing aging-friendly and disability-inclusive work environments, ensuring accessibility and inclusivity in both physical spaces and organizational policies

• Expanding mental health support with virtual care and destigmatization campaigns

• Fostering age-inclusive workplace cultures that prioritize flexibility, psychological safety and holistic wellbeing  while supporting ongoing training and skill development.

The traditional “learn, work, retire” model no longer fits today’s workforce. People are moving through multistage lives, including re-skilling, caregiving, returning after breaks and seeking purpose at every age. Talent strategies need to evolve to match this fluid reality.

Organizations with age-inclusive talent strategies are:

• Adopting skills-powered workforce planning, recognizing and deploying talent based on transferable skills rather than static job titles

• Investing in lifelong learning by focusing on upskilling, re-skilling and identifying “sunrise” and “sunset” skills (emerging capabilities likely to grow in demand, and declining ones at risk of obsolescence) to proactively prepare workers for future roles

• Creating flexible pathways with phased retirement, project-based roles and career re-entry programs for carers and older adults, including those from other career backgrounds

• Redesigning talent practices to reduce age bias, ensuring inclusive hiring, development and advancement at all stages

• Fostering multigenerational teams, where early- and late-career employees learn from one another in environments that value contribution over chronology

Mercer’s recent report, in collaboration with the World Economic Forum, titled Future-Proofing the Longevity Economy: Innovation and Key Trends, asserts, “The ‘future’ of the longevity economy is not in some distant moment — it is already here. Around the world, innovative solutions are emerging to meet the challenges of this demographic transition, and these can be scaled, adapted and integrated into broader financial and social frameworks…The question is not whether change will come — but whether stakeholders will help to shape it or be forced to react to it.” 

Future-ready employers will embrace longevity as a design principle, integrating flexibility, resilience and inclusion into all talent and benefits strategies. Retirement programs should evolve alongside individuals’ needs, from early-career saving to late-life decumulation. Organization must recognize the caregiving demands of employees, implementing policies and protections that reflect the realities of modern life. Additionally, fostering multigenerational collaborations can cultivate teams and cultures that benefit from multifaceted and evolving life experiences. 

By proactively designing longevity-ready strategies, employers can shape a future where an aging, multigenerational workforce becomes a source of insight, innovation and long-term resilience in an ever-evolving world of work.