The situation is even more difficult in China, which is facing a declining population (life expectancy: 78). One reason is the reality that raising children in parts of China is more expensive than in the United States, forcing families and professional women to choose not to have children. (despite urging them to have it). Not-so-distant implications: Labor shortages jeopardize economic growth and torpedo Beijing’s ability to raise enough money by taxing a young working population to support the largest number of pensioners on the planet. There is likely to be.
Credit rating agency S&P Global sees warning signs around the world, like in China and France. Declining fertility rates, financial difficulties, rising interest rates and increasing life expectancy combine to create a “global aging crisis”.
Samuel Tilleray and Marco Musnik, two Standard & Poor’s analysts, see the potential for a longevity-fueled junk rating unless countries begin serious “policy measures to cut age-related spending.” I wrote that a dramatic avalanche would continue, driving up future costs. generation.
“Of the 81 sovereigns we analyzed, just over half by 2060 will have credit metrics associated with a speculative-grade sovereign credit rating (‘BB+’ or lower). ”
Welcome to the “Longevity Economy”
At the World Economic Forum, organizers did their best to change the bleak Malthusian narrative about aging. Gone were the time bombs and the ‘silver tsunami’, replaced by high-level discussions of what the forum calls the ‘longevity economy’. Central Theme: If you are expected to live longer, you also need to adjust your life goals and work longer.
Darryl White, chief executive of Canadian bank BMO, said society needs to consider a different kind of lifehack. First of all, we must abandon the paradigm of first going to school, then working, then retiring. Life is “non-linear,” he said at a panel on super-aging.
“I could decide that I wanted to work sooner. I could decide that I wanted to retire later. .”
Upskilling and reskilling are key to this strategy, an investment imperative that must be shared by employees, employers and governments. The upside: WEF calculates that improving access to reskilling and lifelong learning will boost workplace productivity and increase global gross domestic product by his $8.3 trillion ($11.9 trillion) by 2030 doing.
He is Professor of Management Practice at the London Business School and author of The Hundred-Year Life: Living and Working in the Age of Longevity. ”
“We know that when people stop working in their early 60s, their social capital drops. Their networks get worse. They’re not as cognitively active,” she told DealBook. , a longer working life at work improves personal finances and eases pressure on pension systems.
According to her, ageism is increasingly pervasive in the corporate world, and it can affect corporate productivity. I also want to be held accountable for this,” she said.
“I think companies need to report how many employees they have in different age groups to get a sense of, ‘Are you hiring people in their 60s and 70s? We want’ from a broad talent pool. And companies will see the benefits of building multi-generational workplaces.
‘The younger generation bears a heavy burden’
Young people struggling to build careers may also want to see such data reported. young people alike have an impact on their job prospects, he told the WEF panel.
“Honestly, this bend in the demographic curve is going to put a lot of strain on the younger generation,” she said.
She proposed more progressive tax policies, fairer wages, more scrutiny of corporate governance, and advocated sufficient funding to ensure more people had the money to get their Social Security checks. are put into the communal pot.
In recent years, the government has made steady changes to the country’s retirement policy. The OECD average for minimum retirement age is 62.5, but it will rise to 64 in the next few years as many countries, including Denmark, the Netherlands and Sweden, are raising the minimum retirement age to accommodate increasing life expectancy. I guess.
Hervé Boulhol, a senior OECD economist who specializes in pensions, is outraged at the idea that a time bomb threatens the world’s largest economy. But he believes there are risks if policymakers and business leaders don’t address the issue. “Yes, the clock is ticking,” he said.
This article was originally new york times.
More and more people are living to be 100 years old. Is the world ready?
Source link More and more people are living to be 100 years old. Is the world ready?