In a world of exponential change, long-term thinking is crucial for sustainable longevity

In the global economy, a lot can change in a year. Energy market pressures, trade and tariff disputes and technology-driven growth are reminders of how quickly the business environment can shift.

Geopolitical uncertainty and market volatility demand immediate responses. In the digital age — and now increasingly the AI age — long-term planning can be harder to sustain. And yet, it has never been more important.

In fact, increasing longevity is one of the most significant global challenges society faces.

The decisions we make now to build sustainable systems amid demographic transition will have major consequences for the economy in the decades to come. They will have an even greater effect on the health and wealth of people around the world than any short-term policy shift or quarterly business plan.

This opportunity is simply too large to ignore. It is a multitrillion-dollar chance to reduce public and private spending, while improving well-being across populations.

The latest report in Marsh and the World Economic Forum’s longevity series dives deep on this topic; “The Longevity Dividend: The Business Case for Linking Health and Wealth” documents the business opportunity in improving longevity globally, and offers a blueprint for turning these conversations into action.

From Asia to the Americas, and from Africa to Europe, there is a clear consensus among C-suite executives: ageing populations are among the most significant existential risks facing their organizations and the broader economy. And yet, for many decision-makers, the imperative to act is too often overshadowed by short-term pressures.

These concerns are not unique to the business community. Across the longevity economy, leaders from organizations of every kind are saying the same things: if the world does not adapt to ageing populations, the institutions that underpin our societies will face increasing strain, placing greater burdens on individuals to provide care and on the private sector to help address healthcare and retirement wealth gaps.

Crucially, through the WEF’s Young Shapers network, we are also learning more about how increasing longevity is affecting younger generations — those who will inherit the systems and the choices we leave behind.

By 2040, the number of people aged 65 and over will grow by 53% to 1.3 billion. In the same timeframe, the traditional working-age (25-64) population will only grow 13%. The proportion of older people is also growing fastest in countries like Saudi Arabia, Vietnam and Colombia, which have traditionally had younger populations. Given current demographic trends, their trajectories will likely mirror countries such as Japan and South Korea, which are already experiencing the combination of increasing lifespans and rapidly decreasing birth rates.

These pressures are perhaps felt most acutely across the pillars of caregiving, work and housing. Figures show, for instance, that a five-year career gap can have profound consequences for the retirement savings of carers (29% lower than for non-carers). Ageism in the workplace, meanwhile, will cost the global economy $500 billion by 2040, and access to affordable housing is limiting younger generations' ability to save and plan for their futures.

Although the longevity challenges are very real, so too are the opportunities – and these solutions are not necessarily complex or costly. What they require instead is a shift in thinking. Reframing longevity as a resource rather than a burden begins by looking at the intersection of health and wealth. When prevention is prioritized over treatment, and when the economic and health impacts of direct interventions are measured — including secondary and tertiary benefits — the case for long-term planning becomes far more compelling.

Across just three examples of preventative intervention, trillions of dollars could be unlocked in savings and productivity gains among older people and those who might otherwise provide care:

Home modifications — such as removing trip hazards and installing grab bars — are simple but highly cost-effective. By preventing falls at home, a leading cause of costly treatment and care among older people, pressure on healthcare systems and caregivers can be reduced. When the impact on caregivers is considered as well, $5.4 trillion could be saved by global healthcare systems.

Type 2 diabetes is associated with ageing populations and primarily driven by lifestyle factors. Treating it is estimated to cost the world’s economy $10.2 trillion. Yet by promoting greater levels of physical activity among those at risk, more than 8.5 million cases could be prevented by 2040.

The body of evidence linking hearing loss to dementia continues to grow. Dementia is a leading cause of care dependency, affecting both those living with the condition and formal and informal care providers. While not the primary purpose of a hearing aid, increased use could reduce dementia cases and unlock more than $350 billion in healthcare savings and productivity gains.

These examples are only a starting point. There are many more opportunities to reduce costs, improve resilience and increase productivity across every part of society.

Marsh has long made the case that, if approached collaboratively, sustainable longevity can be an enormous opportunity. That’s why projects like the WEF’s Global Longevity Initiative, of which Marsh is a founding member, are so crucial. The dividends of sustainable longevity are within reach. Yet achieving them requires cooperation, long-term planning and investment in an economy that too often remains focused on the short term.

It is up to all of us — individuals, governments, public sector bodies and businesses — to rethink how we approach longevity. The decisions made today must be collaborative, guided by a different framework and supported by different incentives. They will have lasting consequences for the sustainability of social systems, the trajectory of economic growth and the long-term resilience of people’s health and wealth

Eighteen months from now, we may not know where interest rates will be, how global indices will respond to geopolitics or whether energy costs will rise or fall. What we do know is that the benefits of sustainable longevity will only grow as populations age. Seizing this opportunity will require acknowledging our shared responsibility and taking more intentional, collaborative action to unlock the longevity dividend.