Low-tech, low-cost measures to improve longevity could unlock over $5.8 trn in healthcare savings and $645bn in productivity gains by 2040, according to a report by the World Economic Forum in collaboration with Marsh.
The WEF and Marsh ‘longevity dividend’ report also claimed that much of this opportunity remains unrealized because governments and businesses manage health, finances and labour participation separately. The report studied 21 countries.
The report also claimed that one year spent caregiving combined with the impact of the gender pay gap could cut women’s retirement savings by 24 per cent, highlighting the economic cost of fragmented health and workforce policies.
In addition, simple home safety improvements, physical activity programmes and access to hearing aids could prevent nearly 400 million falls, 8.5 million new diabetes cases and 2.4 million dementia cases worldwide.
“Longevity is not about getting old,” says Haleh Nazeri, lead in the longevity economy at the World Economic Forum. “Harnessing this multi-trillion-dollar shift requires governments, businesses and individuals to begin addressing physical and financial health together. This can strengthen financial resilience, reduce healthcare costs and increase productivity across economies.”
When it came to Type 2 diabetes, promoting physical activity, at a cost of approximately $1-$40 per person, would return over $125bn in productivity gains and $85bn in healthcare savings.
Longevity research by Standard Life has also found that nearly nine-in-ten DB trustees have not yet had the opportunity to assess how new health innovations could affect future scheme liabilities, despite the potential for medical advances to shift mortality expectations.
