London Business School’s Lynda Gratton explores how the growing likelihood of a 100 year life will impact both society and ourselves as individuals in her latest book. The shift will have profound implications for how, where and when we work, but it does require a fundamental change in how society approaches both work and age in order for this change to be a beneficial one rather than an extremely problematic one.
For instance, a recent study from the International Longevity Centre highlighted the strong potential for a ‘longevity dividend’ underpinned by greater productivity as we age. This seldom converts into the public discourse however, which tends to view ageing as a burden as large numbers enter retirement and stop contributing to society, whilst at the same time drawing pensions and demanding larger shares of healthcare provision. This perception is compounded by difficulties in raising retirement age or reducing entitlements towards the elderly.
Organizational transition
It will have implications for how companies manage their talent however, especially if a growing number of employees cannot afford to retire when they want to, and are physically unable to manage certain tasks. This is a very real risk, as saving for retirement remains insufficient for many, with up to a third of retired people in the UK relying solely on the state pension for their income. This alone is some way below the benchmark that defines poverty and the ability to meet basic needs.
Of course, retaining older people in the workforce has numerous advantages as well, with the prospect of keeping hold of the explicit and tacit skills they’ve accumulated during their careers. This is especially valuable in areas where skills shortages exist, and organizations can help to overcome this by using older workers as mentors for people undergoing mid-career transitions.
To a large extent, whether the increased longevity we can expect becomes a burden or a dividend depends largely on the way in which society prepares and responds to the change. Organizations today are largely clueless as to how to handle and use the assets represented by their older employees, especially if they exist outside of their current workforce.
This longevity dividend is certainly achievable, but will require a change in how employers, and society more broadly, approach the topic. Mobilizing older workers’ skills, expanding labour forces and fostering intergenerational solidarity will mean that rising life expectancy can be both socially and economically good.
