The longevity economy

Abstract

The fact that people are on average living healthier, longer lives than previously has the potential to be positive for the economy, offsetting the negative economic effects of an ageing society. A longevity economy will see a shift in the mix of sectors in the economy, with both health and education expanding further and new financial products arising. Such an economy has the potential to contribute to growth in gross domestic product through employment and human capital. Shifting to a longevity economy requires less reliance on policies stated purely in terms of age, and more extension of existing policies aimed at diverse needs and circumstances to older age groups. This shift will be needed to counter inequality within age groups. A life course perspective is also required, to ensure a focus on intergenerational equity and a better understanding of the needs of older individuals that are not health driven.

Projections of future life expectancy in China up to 2035: a modelling study

“… 35 Crucially, an increase in life expectancy will increase pressure on spending on social security and pensions, which also means that advance planning is needed. 36 …”

Living in an Age of Longevity: Enduring Insights and Perspectives for Embarking on a Quest for Health and Well-Being in Later Life

“…The value and respect attached to older age in the years ahead will depend on the extent to which policy making is sensitive enough to recognize and use the creativity, talent, and motivations of older people who wish to remain productive contributors to society, both within and outside of the workforce. Indeed, the policy implications arising from a longevity economy will undoubtedly require a focus on productivity, older adult education and training, social security systems including the need to address "health inequalities in ways that exploit the malleability of aging" ( [147], p. e834). If the role and significance of 'active' citizenship in older age is to be fully realized then it will be crucial to undertake a serious challenge to the persistent, limiting and damaging interpretations that have been central to the social construction of aging and old age [61].…”

Economic effects of healthy ageing: functional limitation, forgone wages, and medical and long-term care costs

“…For financial outcomes, it is plausible that healthier individuals are more active than their unhealthier counterparts in saving for their retirement, expecting that their life expectancy is long, and investing in non-medical consumption, including expenditures on leisure activities [ 20 , 21 ]. Older adults would be subject to weaker constraints imposed by ill-health in their decision-making in these financial activities by remaining in good health.…”