WEF Report Highlights Retirement Trends as Life Expectancy Increases
President Muhammadu Buhari in a bilateral meeting with the King of Jordan, Abdullah II bin Al-Hussein, on the sideline of the World Economic Forum on Middle East and North Africa taking place at the Dead Sea in Jordan.
The World Economic Forum (WEF) has revealed that life expectancy increased from an average of 46 to 73 years between 1950 and 2019, just as the United Nations (UN) has forecasted further increases.
In a new report titled: ‘Living Longer, Better: Understanding Longevity Literacy,’ which the WEF developed in collaboration with Mercer, a business of Marsh McLennan, also estimated that global average life expectancy would reach about 81 years by 2100.
It noted that longer lifespans were causing individuals, governments and business leaders to rethink their approach to work and retirement.
Furthermore, the law explored how lengthening lifespans were reshaping how individuals view their working lives and retirement.
The report offers recommendations for government and employers to ensure they are adequately supporting people in multiple stages of work and retirement.
It also highlights purpose and quality of life in addition to financial health and resilience – themes that are traditionally associated with retirement planning. Similarly, it offers options that individuals could consider to ensure they are approaching work, learning and retirement in ways that best meet their needs.
“When it comes to longevity and living longer, healthier lives, everyone has a role on this critical topic,” Longevity Lead, World Economic Forum, Haleh Nazeri said.
“How will business support an older workforce and one with growing caregiving needs, what will policymakers do to help all citizens reach retirement equity, and finally, what can individuals do at every life stage to ensure they are able to stay financially resilient in a longer life.
“Employers are thinking more about the current age distributions within the areas of talent needed to operate their organizations and how to influence the trajectory of these distributions,” Executive Director, Investments & Global Chief Investment Strategist, Mercer, Rich Nuzum added.
“To leverage longevity and fight the war for talent effectively, moving from individual roles to team-based roles can help employers take full advantage of the diverse strengths of teams that comprise a combination of older and younger workers.”
The report revealed that a new survey, Pulse Poll, of almost 400 professionals indicated that women and men viewed retirement differently.
It showed that, “Women, for example, are 55 per cent more likely to say they don’t know if they have saved enough for retirement.
“The poll also reveals differences in how younger and older populations view their retirement futures. Both women and those under 40 are more willing to reskill but worry about associated costs. Both groups are also more likely to feel isolated.
Health is a top concern with two thirds of respondents indicating they expect to have caring responsibilities Days of “Bank of Mum and Dad” may be reversing; many younger people are likely to have to financially support older family members
Pulse Poll respondents over 40 target lower income replacement levels in retirement.
“People are generally unaware of how to achieve their target levels of retirement income. More men looking forward to retirement, while more women need to understand their financial situation.
“Younger people are eight times more likely to use social media for financial advice 44 per cent of under-40s want to retire by 60. Women and younger people are more willing to reskill but are also worried about associated costs.
