Asia's next trillion-dollar growth engine: How to tap the longevity economy 

Asia is rapidly aging for two main reasons: People are living longer, and birth rates are falling. According to the World Economic Forum's Longevity Dividend report, co-authored with Marsh, the global over-65 population will grow by 53%, while the working-age population will rise by a mere 13% by 2040.

Asia's aging population is no longer just a HR prerogative — it is now a board-level agenda. The report estimates what inaction could cost the world: $645 billion in lost productivity and $5.8 trillion in avoidable healthcare costs by 2040. 

However, the upside is just as momentous. The silver economy represents a $10.2 trillion growth opportunity across Asia Pacific by 2036, driven by the aging populations of Japan, South Korea, China, and Southeast Asia. This opportunity is closely tied to healthy aging: if governments and businesses invest in improving the human capital of older individuals, global GDP could rise by up to 0.4% annually through 2050. Besides super-aged and aging societies, traditionally “young” countries such as Indonesia and Vietnam are also seeing some of the fastest growth in their over-65 populations, with steep longevity transitions ahead.

Tapping into the longevity economy requires extending health, work and wealth spans in tandem, the three interconnected areas that determine whether longevity becomes a drag on growth or an economic catalyst. Poor health shortens careers, and shorter careers weaken financial security, so a setback in one span can quickly ripple all three.

Philosopher Ralph Waldo Emerson wrote that “the first wealth is health”. This is also the starting point for the longevity economy: health spans, more than lifespans, decide whether those extra years add up to quality of life and robust career paths. Healthy people are able to work longer and meaningfully contribute to the workforce, and by extension, the economy.

Yet, poor health doesn't stay contained to the individual. On a macro level, healthcare systems and resources can come under strain and lead to longer wait times, while employers, employees, and governments end up shouldering higher costs. When more national capital pivots towards treating illness and reactive care, less goes towards investment in infrastructure, education and technology.

Health promotion and chronic disease prevention are core to increasing health span and driving economic growth in the longevity economy. However, short-term cost pressures and limited visibility in the returns of preventive care investment can be a deterrent for many companies.

What can governments, businesses and individuals do to build a sustainable roadmap for longevity?

Asia is facing a growing talent gap as older workers exit the workforce faster than younger workers can replace them. In the energy sector, for example, the ratio of workers nearing retirement to young workers entering grid roles is 2.4 to 1.

A tightening labor market can pressure companies to do more with fewer workers, and if labor constraints are not offset by productivity gains, it may slow economic growth. This is compounded by declining employee thriving levels which affect productivity. 

Ageism adds another layer of complexity. It pushes older workers out of the workforce and adds to their mental strain, and it is projected to cost OECD economies up to $500 billion in lost productivity from the underemployment of adults aged 55 to 70 by 2040. As the population ages, more of the cost falls on active workers, and governments face growing fiscal exposure risk and pressure as the working-age population shrinks relative to the number of retirees.

What can governments, businesses, and individuals do to extend work spans and make them more meaningful, especially for the older workforce?

Medical costs are already outpacing wages across Asia, and this pressure trickles down to healthcare institutions, governments, organizations, and individuals alike. Robust careers support the financial resilience employees need to sustain their health and independence in later life. Poor health shortens work span, and wealth span weakens with it. 

Additionally, a longevity economy is built on care. Without an integrated infrastructure to support it, the whole framework fails. Many employees across Asia are already balancing work with childcare or eldercare responsibilities, and those pressures affect health, productivity, and retention. In fact, 59% of employees in Asia are caregivers, and within that group, 60% worry about obtaining affordable childcare or eldercare services, 58% worry about their physical health declining, and 56% worry about their mental and emotional health.

The toll compounds for women. A one-year caregiving break combined with the gender pay gap can cut a woman's retirement savings by 24%, leaving women more exposed to weaker work spans and thinner financial resilience.

A blind spot remains: the younger and mid-career workers. As more young people leave the workforce resulting from burnout or shift to gig roles, not only do they face financial pressure, but talent scarcity will also intensify. 

What can governments, businesses, and individuals do to build financial resilience and strengthen wealth spans for all generations?

At Marsh, we recognize that health, work, and wealth are interconnected in a longevity economy, and we advise governments to help our clients benefit from policy tailwinds and build future-ready strategies. There is no one-size-fits-all approach for all markets, and that's why we take a holistic approach – one that addresses them together, reduces cascading risks, and builds long-term resilience for the economy, businesses, and people. Small, practical steps today can create outsized impact and unlock trillions in gains tomorrow.