Future Proofing the Longevity Economy 2025

As the longevity economy reshapes the workforce, prioritizing financial well-being is essential for building employee engagement and long-term organizational effectiveness. Investing in financial well-being can improve not only individual health and financial security but also organizational productivity, engagement and retention. As the shift from defined benefit (DB) to defined contribution (DC) plans has placed more financial decision-making responsibility on individuals, employees increasingly look to their employers for guidance. Tailored programmes addressing diverse financial needs are essential for a thriving workforce and sustainable business outcomes. –The 2021 Global Findex by the World Bank reported that 41% of adults globally would find it either impossible or very difficult to access emergency money within 30 days, and 65% are worried about having enough money for normal monthly expenses.46 –Employees experiencing financial stress are five times more likely to feel disengaged at work, citing this as a barrier to workplace focus and productivity.47 –According to a study, 95% of employers feel responsible for their employees’ financial wellness.48Despite the clear benefits, financial well-being deficits remain pervasive. Globally, many employees may not have the resources, knowledge or confidence to manage debt or save for their future effectively. This exacerbates stress, affecting workplace focus and morale. By addressing these challenges, employers can enable employees to achieve financial security, benefiting both individuals and organizations. One significant challenge is that many employer- sponsored benefits – including life, disability, health insurance and retirement plans – often cease when employment ends. This can leave employees vulnerable, particularly those with dependent children or medical conditions. Such precarious situations can exacerbate financial stress. Employers have an opportunity to bridge these gaps through targeted financial well-being initiatives, including personalized approaches to financial education, resources and employee benefits that use behavioural principles to support employees in taking meaningful action. Effective programmes should not only address immediate financial challenges, such as debt repayment and emergency savings, but also promote long- term resilience through retirement planning and investment education. Employers in the private sector can work with government entities to consider what policies and partnerships can support workers. Improving financial well-being is not just an investment in employees – it is an investment in organizational success.3.1 The case for action Employers and financial wellness FIGURE 6 Feel at least somewhat responsibleFeel extremely responsible53%Feel somewhat responsible42%Most employers feel responsible for employee financial wellness, yet far fewer offer financial wellness programmes Offer financial wellness programmes 44%95% SOURCE: Bank of America Workplace Benefits. (2024). Inspiring inclusive financial wellbeing in the workplace. https://business.bofa.com/content/dam/flagship/ workplace-benefits/ID22-0888/Bofa-WBR-brief.pdf Employers that prioritize financial well- being can foster a more engaged and productive workforce. Future-Proofing the Longevity Economy: Innovations and Key Trends 2424