How employers can unlock the potential of the longevity economy 

According to the World Bank, approximately 65% of adults globally are worried about having enough money for normal monthly expenses. As life expectancy increases, individuals need to ensure that they have sufficient savings, for their present, as well as their future.

Financial worries are highly correlated with psychological distress, which impacts an individual’s wellbeing and their ability to perform at work. Financial education and support from employers are vital, for the employee and the employer.

Lifespan and 'healthspan' are two distinct concepts. Employers and employees must prioritise healthy ageing that supports a longer working life and a higher quality of life in retirement. The US Integrated Benefits Institute estimates employers incur $575 billion a year in lost productivity from staff sickness and health typically suffers more deeply into old age.

As the ageing population puts more pressure on health and care services, greater emphasis is needed on prevention rather than intervention. Research by the Centres for Disease Control has shown that loneliness is also linked to poorer physical and mental health. Retirees are especially vulnerable, as they are removed from the social environment of the workplace.

There is an estimated $5 trillion in potential economic output from employing older workers, according to the McKinsey Health Institute. An ageing population means the ratio of workers to retirees is falling. While the competition for talent is becoming fiercer, many older adults who wish to work are unable to find a job.

In response, employers need to explore ways of reskilling employees, some of whom will be at later stages in their careers. Successfully doing this will require a change in workplace culture for older workers; multiple benefits are to be gained, from alternative perspectives and fresh ideas from outside cultures and industries, intergenerational knowledge transfer and reduced turnover.

Greater focus is needed from employers to overcome systemic barriers across gender, race and socioeconomic class to ensure equitable access to health and retirement outcomes across entire workforces. Women, racial minorities and those from lower-income backgrounds face systemic obstacles that may make it more challenging to save for the future.

This exacerbates inequalities in retirement and perpetuates inequality across generations. Women are still much more likely to take on carer responsibilities, leading to lower retirement savings, despite women’s typically longer lifespans. Additionally, troubling connections persist between income inequality and disparities in life expectancy.

Provide workers with access to financial savings and insurance vehicles. Contribute directly to their retirement savings, integrating behavioural nudges and auto-features where available. Offer relevant financial education and guidance to build financial literacy and longevity literacy for workers and their families.

Provide quality, affordable and accessible health and well-being benefits for workers. Invest in programs to improve worker health and well-being, including preventative health screenings, health insurance, long-term care, critical illness coverage and mental health benefits.

Foster a culture of inclusivity and lifelong learning, with flexible career paths, allowing for phased and flexible retirement structures. Adapt jobs for workers in physically or mentally demanding roles to prevent unplanned early retirement. Promote policies and resources to facilitate re-entry into the workforce after career breaks and provide support for informal caregivers.

Enable individuals to remain connected to work environments for as long as possible, recognising the sense of purpose it provides. Offer formal and informal mentorship options for intergenerational collaboration and actively address ageism in the workplace.