Changing Age Demographics Have Big Implications for All of Us – Let’s Get Engaged on Shaping The Future We Want (and Need)

I recently had an opportunity to participate in a panel discussion at the World Economic Forum called Preparing for a 100-Year Life. It used a striking demographic projection – that more than half of children born today in wealthy countries such as the U.S., U.K., Japan, Germany and France will live past the age of 100 – as a jumping-off point for a larger discussion of the profound implications that extended lifespans have for societies.

And believe me, the implications are profound. They have social and economic impact for us as individuals and for broader society, affecting everything from how and where we live, how we get around, and what our communities look like to education, health care and the workplace.

On every continent, leaders speak of being inundated by the effects of aging and its consequences. Who will pay for their pensions? Who will pay their medical bills? Who will care for them? There is no doubt that longer lives create challenges, and we wrestle with those questions every day.

Did you know that if you go to Google and type in “Global Aging,” the first phrase it suggests you are looking for is “crisis”? Think about that—if you’re trying to find information on the rising age our population—a modern wonder of medicine and science—the word most connected to it is “crisis.” You’d think we were preparing for something akin to a zombie apocalypse.

I believe there is a bigger conversation to be had—focused not just on burdens, but also on the benefits of living longer. What if instead of seeing just dependent retirees, we saw a new type of experienced, accomplished workforce? What if instead of seeing only rising costs, we saw an exploding consumer market that could bolster our economies? What if instead of seeing a growing pool of dependents, we saw intergenerational communities with new and different strengths?

My point is that we need to change the way we think about aging and how we live throughout our lives, not just during our later years. It’s more about how we live than how long we live. We need to empower people to choose how they live as they age, not just when they are old.

While the idea of a 100-year life is something that primarily applies to children just being born, it raises some interesting questions for all of us. Think of it this way: If you knew you were going to live to be 100, what would you do differently? How would it affect the way you take care of yourself? Your work? Your spending and savings habits? Your relationships, education, where you live?

We’re already witnessing changes taking place. The linear life course from education to work to retirement that is hard-wired into most people’s brains, at least from an industrialized world perspective, is changing. People are staying in the workforce longer, starting new businesses and going back to school. And, as - the number of people age 65 and up nearly doubles, in the U.S. and overseas, over the next generation, it will change a lot more.

The Impact on Business

So, what does this means for businesses? I think it starts with two things: 1) embrace the important role older, more experienced workers can play in your organization – whether they’re already there or they’re candidates you may be interviewing, and 2) recognize that an aging population is a growing customer base for your products and services.

Here in the U.S., employees 65 and older currently outnumber teenagers in the workplace. Over the last 15 years, the percentage of employees age 50 and older has grown more than 25 percent, and within five years is expected to account for almost 40 percent of the total U.S. workforce. You can see where this trend line is headed. We're approaching a time when it will be common to have four generations in the workforce.

This can present challenges. Organizations have to figure out how to deal with that reality. Years ago, one of the big questions was, "Can a man report to a woman manager?" We've answered that question. Today, a big question is can an older employee report to a younger manager? Many organizations are still grappling with that one.

On the whole, workers 50 and up bring traits that are highly sought after in the workplace: experience, maturity, professionalism, a strong work ethic, loyalty, reliability, knowledge, understanding, and the ability to serve as mentors. While these characteristics aren’t unique to them, they can be found in this demographic in comparatively high levels and in ways that can be very valuable to employers.

Employers also need to recognize that an aging population also means more customers for their products and services, and that it presents an opportunity to develop new offerings for this population. Here in the US, people 50 and over comprise a Longevity Economy that generates more than $7.6 trillion in annual economic activity and supports more than 89.4 million jobs. Over 60 percent of all U.S. jobs and 43 percent of labor income was related to this group’s spending. Measured in terms of GDP, this would be the third largest economy in the world behind the US and China. As we continue to move toward the 100-year life, this segment of the economy is only going to grow more rapidly.

The way we are aging today is different that it was a generation or even a decade ago. We’ve already seen how some life stages, and some of the definitions surrounding them, have evolved. Years ago, “middle-age” started, in most people’s estimation, not too long after 35. Now it’s more like late 40s or early 50s and lasts into our 60s. Career wise, once you hit 60 a lot of people saw themselves as over the hill. Far fewer do now. Traditional retirement, as we know it now still exists, but more and more people want to keep working in some form, or change careers, start a small business, work part-time, or volunteer. People want choices, and societies and business need to help create those options and give people those choices.

Our world is, for lack of a better term, “getting older.” But it’s much more than that. We haven’t just added more years to the end of life, we’ve extended middle age and created a new life stage that has opened up a whole new world of possibilities for how we live as we age. While we’re just beginning to understand the full range and depth of those possibilities, one thing is clear: our culture, institutions, social supports and infrastructure have not kept up with the advancements in the way we age that science and technology have made possible. Let’s get engaged, as individuals, communities and societies, on what we need to do -- in the workplace and at home; in healthcare and education, and more – so that longer lives are all we want (and need) them to be.   

Jo Ann Jenkins is CEO of AARP and the author of Disrupt Aging: A Bold New Path to Living Your Best Life at Every Age.