Future Proofing the Longevity Economy 2025

Ensuring financial security across life’s transitions is essential for both individual well-being and long-term economic resilience. The traditional notion of a linear career ending in a single retirement event is no longer a reality for many people. Today’s workers may make multiple career changes, undertake entrepreneurial ventures and take on caring responsibilities while enjoying longer lifespans. This demands a reimagining of financial systems to support individuals through these stages, ensuring they have access to appropriate insurance, savings and skill-building opportunities that enable them to meaningfully engage in the economy. In turn, this not only enhances personal financial security but also allows individuals to continue to contribute to economic growth throughout their lives. –By 2031, nearly 25% of the workforce in developed economies will be aged 55 and over,82 highlighting the need for financial and employment systems that can enable career transitions and continued workforce participation. –Women, who tend to take more career breaks for caring responsibilities, often experience significant gaps in their financial security, with a reported 26% lower retirement savings than men on average.83 –More than 60% of workers globally are in the informal sector, and hence lack the safety nets provided by formal employment and pension systems, which increases financial vulnerability and limits economic mobility.84 To sustain growth in the longevity economy, financial systems can be designed to provide both security and flexibility, enabling individuals to transition between roles, invest in skill development and engage in care provision without long-term financial setbacks.5.1 The case for action From three to many stages of life FIGURE 9 From three to many stages of life The three-stage model The multistage life Education Portolio (mix of paid and unpaid) work Retirement Education Work Retirement Employment in an organization Self-employment Exploration Transition SOURCE: Gratton, L., & Scott, A. (2017). The corporate implications of longer lives. MIT Sloan Management Review. https://sloanreview.mit.edu/article/the- corporate-implications-of-longer-lives/ To sustain growth in the longevity economy, financial systems can be designed to provide both security and flexibility. Future-Proofing the Longevity Economy: Innovations and Key Trends 40