Future Proofing the Longevity Economy 2025

Introduction As global populations age and birth rates decline, society must urgently adapt to the changing realities. All regions of the world will be affected by this seismic demographic transition. The statistics are sobering and highlight the urgency of this shift: –By 2080, individuals aged 65 or older are projected to outnumber children under the age of 18.4 –By 2060, Asia will have 60% of the world’s population aged 65 and older.5 –By 2050, the global population aged 65 and older will reach 1.6 billion, with one in six people over 65.6 In Europe and North America, this ratio will rise to one in four; in some countries, such as Japan, South Korea and Italy, this ratio is projected to exceed one in three.7 –By 2050, sub-Saharan Africa is projected to have a net increase of 740 million people, experiencing the fastest increase in the traditional working-age population of all regions.8 –As of 2025, one in four people reside in one of the 63 countries that have already peaked in size, accounting for 28% of the world’s population.9 China, previously the world’s most populous country, saw its population decline in 2022 for the first time in six decades.10 The traditional balance between the years spent in productive employment and retirement is rapidly becoming unsustainable. For decades, the “demographic dividend” – the economic benefit resulting from a large and increasing working-age population compared to retirees – has helped fuel growth in many nations. However, as life expectancy increases and birth rates decline, countries now face the dual challenge of maintaining the resilience of economic systems while ensuring younger generations are not overburdened with future financial strain. These demographic changes not only necessitate a re-evaluation of economic, retirement, healthcare and care systems but also influence individuals’ financial pathways and the role of employers in supporting a multistage life, creating a complex web of interdependencies that must be addressed holistically. Yet society as a whole is largely unprepared for this significant demographic shift, either due to inadequate savings, lack of career flexibility or outdated pension systems with mandated retirement ages. In many regions, particularly in low- and middle-income countries, barriers including limited job opportunities, economic instability and inadequate infrastructure can add further complications. Reframing the demographic dividend The idea that an ageing society is a burden, and will deplete resources and tax social services, needs to be reframed: in a multistage life, everyone can contribute and benefit at different times depending on their circumstances. The challenge, then, is creating systems that allow people to contribute to society at various stages of life, whether that means transitioning into entrepreneurial ventures, shifting careers or engaging in informal care provision, while also increasing the number of years in which people are healthy enough to make a positive contribution to the economy. Facilitating these transitions, ensuring financial security at each stage and promoting healthy ageing unlocks opportunities for all generations to thrive, while at the same time increasing the overall size of the economy. An inclusive and financially resilient future is not just about making adjustments to existing systems, but about rethinking how individuals can be supported in their economic roles over time. Whether what is needed is providing access to lifelong learning, supporting carers or ensuring adequate retirement savings, the future of work (and life) – and the financial systems that support it – needs to be flexible and inclusive. The world is at a pivotal point, one where the longevity economy offers immense potential. Society has an opportunity to proactively address this seismic demographic transition and co-design an environment in which both young and old can flourish, benefiting all. A profound public debate about the future of the longevity economy – in which a sound, resilient pension system is just one aspect – has been largely absent from global discourse. This paper aims to promote this dialogue and bring together stakeholders from the public and private sectors and civil society to collaboratively explore innovative solutions to future-proof the longevity economy.Demographic shifts are reshaping the world in profound ways, driving unprecedented changes in social and economic systems. Society has an opportunity to proactively address the seismic demographic transition and co-design an environment in which both young and old can flourish, benefiting all. Future-Proofing the Longevity Economy: Innovations and Key Trends 5