Economic Effects of Aging Populations

20 years ago, analysts predicted that by 2025, women would own the majority of the UK’s wealth. The opposite has happened. Today, women’s share of UK personal wealth has fallen to 45% (per ONS data) - with the average woman holding £78,000 less than the average man. Why? The barriers are depressingly familiar: → A 13% gender pay gap (even wider for mothers). → A pension gap of 48% - with men aged 60-69 holding £150k more on average than women of the same age. → Career breaks, caring responsibilities, and part-time work exclude many women from auto-enrolment into pensions. → Lower levels of investment confidence - 52% of women have never held an investment outside their workplace pension. The story is not about women working less hard or performing less well. Girls still outperform boys at GCSEs. Women are founding businesses in record numbers. But our systems - childcare, pensions, investment, taxation… are still stacked against them. That’s why I’m incredibly proud of the work I do with initiatives like the Invest in Women Taskforce Without systemic change, women will continue to be wealth underachievers relative to their talent, contribution, and potential. We’ve known the problem for decades. And the numbers tell us: optimism alone won’t close the gap, action will.

Did you know on average women in the UK need to work 19 years longer than men to bridge the pensions savings gap? This was highlighted by findings from the Pensions Policy Institute earlier this year. The gender pension gap is a serious issue, particularly for women in midlife and beyond. Many women are forced to leave the workforce early due to health concerns like menopause, and at retirement, women’s pension pots are £136,000 short of men’s, leaving many to face financial insecurity. Also, 37% of women in the country do not engage in investments beyond their workplace pension, whereas this figure is 24% for men -- in part due to having less disposable income available for investment -- according to Aviva, a UK pension provider. The pandemic made things worse, with women over 65 struggling to bounce back from job losses. Gender pay gaps, ageism, and caregiving duties further compound these challenges, particularly when viewed through an intersectional lens. In the UK, women are almost three times more likely than men to retire early to care for a family member. All together, from the gender pension gap to caregiving duties, these findings paint a stark picture of the challenges midlife and older women face in the workplace. Yet, organisations are lagging. Despite Europe’s median age climbing, less than 10% of companies factor age into their diversity strategies. Older workers are often overlooked, but the skills they bring are invaluable. We need to prioritise flexible work, carer’s leave, and menopause support. Some companies are making strides by integrating age-inclusive practices—but more must follow suit. It’s time to close the pension gap and give older and midlife women the recognition, financial security and pension parity they deserve. Learn more about gendered ageism in one of our most recent blogs: https://lnkd.in/eEurQvKJ And read more about the gendered pension gap: https://lnkd.in/eNRxk2gu #GenderEquality #GenderEquity #EDI #DEI #ThreeBarriers

JAPANESE COMPANIES PAY OLDER EMPLOYEES TO DO NOTHING. Tanaka-san worked 35 years for the same manufacturing company. He started as a junior engineer. He trained dozens of younger workers. He sacrificed family time for deadlines. Now he sits by the window. Reading newspapers. Drinking tea. Doing minimal work. And still earning his full salary. In Japan, this is called Madogiwa-zoku, the “window side tribe.” Employees who’ve given decades of their lives to one company. Now earning respect, not productivity. To Western executives, it looks like waste. “Why pay someone to do nothing?” “Fire them, hire younger talent.” “Cut costs, maximize efficiency.” But Japan sees something different. The company could push Tanaka into early retirement. Save $60,000 per year. Hire someone half his age for half the salary. But instead, they choose loyalty over profit. Other employees notice. They see how veterans are treated. The message is clear: “If I give my best years here, I’ll be respected too.” The 35-year-old engineer watching Tanaka works harder. He stays later. He turns down offers from competitors. That loyalty compounds. Japan has the highest employee retention rates in the world. Average job tenure: 12 years. America: 4.1 years. Stability creates deeper commitment. Training costs plummet. Onboarding slows down. Knowledge stays inside the company walls. The window seat pays for itself. This is why Toyota, Honda, Sony, all practice variations of “window side respect.” Their innovation rates often surpass American companies. Counter to efficiency obsession. And the window seat isn’t retirement. Tanaka mentors young engineers. He shares 35 years of experience. He prevents costly mistakes. His wisdom is invaluable — just not measurable by spreadsheets. During the 2008 financial crisis, American companies laid off millions. Japanese companies kept their window side tribe. Result: faster recovery, stronger employee trust. Loyalty during crisis creates legends. Even today, 25.2% of Japanese workers over 65 are still employed. USA: 18.6%. UK: 10.9%. Modern businesses chase quarterly results. They fire experience. They hire cheaper. They optimize for efficiency. Japanese companies optimize for relationships and respect. Because some of the most valuable investments can’t be measured on spreadsheets. Loyalty, respect, and institutional wisdom compound like interest. Sometimes, honoring the past builds the strongest future. #japaneseculture #wisdom #respect #workplace

This week, I gave evidence to the House of Lords Economic Affairs Committee on how the UK can better prepare for an ageing society. We're living longer lives, while birth rates continue to fall – this is a structural shift that needs far more attention than it's receiving right now.   The report shared a critical point: raising the State Pension Age is a blunt and ineffective lever, and by the time people reach it, many have already left the workforce. The real opportunity lies in supporting people in their 50s and 60s to stay in, or return to, meaningful work. This would involve rethinking health at work, flexible roles, the renewal of skills, and how organisations are viewing age and productivity. Too often, the barrier is system design.   An ageing society touches productivity, living standards, education, and how we design working lives. Other challenges like climate, AI, and defence rightly receive policy focus, and longevity deserves the same urgency.   We have time to act! But only if we start now…   The Financial Times shared a great piece on this which I'd encourage you to read: https://lnkd.in/gN4eVfn9

SHOULD Australia's pension age be fixed at 67 - regardless of occupation? Our pension age is set at 67, regardless of health, occupation or personal circumstances. Yet there is growing concern this one-size-fits-all approach overlooks the reality that older workers face. Consider those in physically demanding jobs like construction, mining, aged care or manufacturing. Decades of lifting, bending, repetitive strain and exposure to harsh conditions can leave workers’ bodies worn out well before they hit 60. And it is not only those in physically tough roles who experience occupational wear and tear. Years spent in high-pressure, mentally taxing or emotionally draining jobs can take a toll to leave workers struggling long before they are able to access their pension. Burnout, anxiety disorders and chronic fatigue can emerge after years of sustained pressure. Roles such as nursing, emergency services, teaching and social work can erode wellbeing over time, with the long-term impact proving just as debilitating as the physical demands of more labour-intensive work. And years of shift work – especially night shifts – can cause chronic sleep disruption and long-term health issues. But the ability to work until 67 is shaped by more than just the nature of the job. Age bias can quietly edge older workers out of opportunities, with skills and experience too often overlooked in favour of younger recruits. Health issues, whether the result of genetics, lifestyle or sheer bad luck, can also cut careers short to make the pension feel out of reach. For some, the result is an involuntary and premature retirement well before pension age. A standard pension age does provide clarity, consistency and a clear framework for individuals and government. Yet the realities of ageing, career patterns and personal circumstances mean a fixed age cannot fairly or feasibly apply to everyone. Many people forced into early retirement face an income gap between leaving the workforce and becoming eligible for the age pension. Superannuation does not always come to the rescue. While estimates differ, many people forced to retire in their mid to late-50s have accumulated only $200,000 to $350,000 – and some far less. Australia often prides itself on fairness and giving people a fair go. Rather than locking everyone into a single pension age, there is a strong case for building greater flexibility into the system. Such flexibility could include staggered pension ages, occupation-specific provisions or partial pensions for those unable to continue working full-time. A pension system that recognises these differences would not only be fairer but uphold the very principle of giving every Australian the chance to retire with dignity and security. It is a discussion worth starting now, before the idea itself retires early. #hr #pensions #management #careers #aimwa #careers #workplace Cartoon used under licence: CartoonStock

Social Security was never meant to be the primary source of income for retirees. Yet, pinched by a high cost-of-living and the prospect of a decades-long retirement, many Americans consider it a lifeline. More than half (53%) of non-retired adults expect to rely on Social Security for necessary expenses in retirement, with 28% anticipating heavy reliance, according to a new Bankrate survey released today. That percentage jumps to 77% for retired adults, with 62% very reliant. That’s despite Social Security benefits replacing about 40% of pre-retirement earnings on average, according to the Social Security Administration. Meanwhile, the average retired worker receives roughly $1,920 a month, though that amount depends on individual contributions and the age someone begins collecting benefits. With rising living expenses and Medicare premiums, it's clear that Social Security alone might not be enough. A significant portion of Americans regret not saving for retirement earlier, with 57% feeling behind on their savings in updated polling from this year. This concern is more pronounced among Gen Xers and baby boomers, with 68% and 66% respectively feeling they’re lagging. Adding to these challenges is the looming Social Security funding shortfall. Without congressional action, the program may only cover 75% of scheduled benefits by 2035. With President-elect Donald Trump interested in excluding Social Security benefits from taxation, some retirement experts fear the insolvency date could be even sooner. Given these uncertainties, it's crucial for Americans to take proactive steps in their retirement planning. Consider options like 401(k)s, IRAs, brokerage accounts, annuities, and even health savings accounts (HSAs) as part of your strategy. How reliant do you feel you'll be on Social Security, and how worried are you about a shortfall? https://lnkd.in/dgFwqN9X

Ageing India: The Next Big Frontier for Innovation While the popular discourse remains on Gen Z and Gen Alpha, India’s demographic landscape is shifting . By 2050, the familiar population pyramid will start resembling a vase, with a significant rise in the senior population. (refer attached infographic ) While this presents challenges, it also unlocks enormous entrepreneurial opportunities across various sectors. 1. Healthcare & Wellness: With an ageing population comes rising demand for chronic care management, telemedicine, home healthcare, and age-specific wellness solutions. There could be a large opportunity to build brands in such functional categories. 2. Senior Living & Assisted Housing: The need for safe, accessible, and community-driven living spaces will surge, offering avenues for developers and service providers to rethink housing for seniors. 3. Financial Services: Innovative post-retirement financial products, wealth management solutions, and insurance models will be essential to support a longer, financially secure retirement. This has already started in India, and will only get bigger . 4. Entertainment & Engagement: Opportunities abound for creating content, experiences, and recreational activities tailored for older demographics seeking active and enriching lifestyles. This is still untapped and could really be a breakout sector with high growth- high margin possibilities 5. FMCG & Consumer Goods: As preferences shift with age, there’s a growing demand for products tailored to older adults. This includes fortified and easy-to-digest foods, nutritional supplements, ergonomic packaging, personal care products designed for sensitive skin, and household essentials that prioritize convenience and accessibility. Brands that innovate for this demographic will build loyalty in a rapidly expanding market segment. This is a big opportunity for legacy brands to launch line extensions and extend customer life cycles . The silver economy is not just a challenge—it’s a vast market waiting for thoughtful innovation. Entrepreneurs who tap into this shift will not only create impactful solutions but also shape a more inclusive and prepared society. #AgeingIndia #Entrepreneurship #Innovation #SilverEconomy #consumertrends #consumerbehavior

The new retirement? No retirement. Northwestern Mutual's 2025 study says Americans need $1.26 million to retire comfortably. Yet LinkedIn data shows baby boomers are returning to work at rates not seen since before the pandemic. Last week, a friend who retired at 67 called me in a panic. His portfolio dropped 22% in 2022 while inflation ate into his purchasing power. "Andy, I'm going back to work," he said. "I can't shake the feeling I'll outlive my savings." Here's what many retirees miss. It's not just about having enough money. It's about managing it through market cycles. After 26 years as a financial advisor, I've learned the most successful retirees don't set their allocation and forget it. They stay tactical within guardrails. The 10% Rule That Changes Everything: Start with your strategic allocation—let's say 60% stocks, 40% bonds. But give yourself permission to adjust plus or minus 10% based on market conditions. Economy humming? Maybe you're 70/30. Recession clouds forming? Dial back to 50/50. You're always balanced. Always diversified. But you're not sitting still while markets shift around you. My friend? Instead of going back to full-time work, he's consulting. Working 10-15 hours a week doing something you enjoy? That's not failure. That's freedom. It lets your portfolio breathe while keeping you engaged. The new retirement reality... your best hedge against outliving your money isn't just saving more. It's staying flexible, both with your portfolio and your plans. What's your approach to managing risk in retirement? #RetirementPlanning #FinancialAdvisor #BabyBoomers #LITrendingTopics #Retirement

Forget Akiya. Aging Business Owners with No Successors Are the Real Crisis. More than 60% of small and medium-sized business (SME) owners in Japan are over 60 years old, and nearly half have no clear successor. Each year, around 50,000 businesses shut down, resulting in an estimated economic loss of ¥22 trillion (about $150 billion). On a recent trip to Shodoshima, an island in the Setonaikai National Park, I came across a small, family-run shoyu brewery that left a lasting impression. This wasn’t just any brewery—it’s housed in the oldest kura (traditional storehouse) on the island, a weathered but enduring structure that has safeguarded centuries of craftsmanship. Inside, the air is rich with the aroma of soy sauce fermenting in wooden barrels, using techniques handed down through generations. The couple running the brewery are now in their 80s. Despite their age, they continue their work with unwavering devotion. On Saturdays, they transform the brewery into a café, creating a space where locals—many also elderly—gather to connect, share stories, and keep their sense of community alive. They’ve also opened a small gallery in their kura, showcasing works from young artists in Setonaikai—a beautiful example of bridging the past and the future. For travelers like me, it was a rare chance to experience the authentic soul of the island and meet its people. But behind this warm and welcoming scene lies a sobering truth: they have no successor. When I asked them, “What will you do when you can’t work anymore?” their response was simple: “We’ll just shut the company down.” This story is far from unique. Across Japan, shōkei mondai—the business succession crisis—is quietly unraveling rural economies and eroding cultural heritage. While akiya—Japan’s vacant homes—often dominate conversations about the country’s aging population and rural decline, the real root cause is often business closures. When businesses like this brewery shut down, the ripple effects are devastating: jobs vanish, young people leave, and homes fall empty. The problem is especially dire in rural areas like Shodoshima, where younger generations migrate to cities in search of opportunities, leaving behind not just businesses but entire traditions and ways of life. While Earthship does not directly solving shōkei mondai by creating SME platforms, we’re tackling a critical part of the problem: bringing these under the radar locations and businesses into the spotlight. This exposure creates demand. People discover these businesses, purchase their products, and sometimes even decide to take up their legacy. It’s a win-win—communities get the attention and support they desperately need, and visitors walk away with experiences that stay with them forever.

You may have seen the article — or at least the headline — already. The Economist labels Baby Boomers as “loaded” and asks “Why are they so stingy?” That ageist language is enough to warrant an entire post. But when you add in the assumptions this piece makes about the behavior of adults over age 65 and their housing decisions, you have a report that totally misses the realities of aging today. That’s not to say that there isn’t substance in this piece (link: https://lnkd.in/eigWMYFR). I will follow up with a post that looks at what the Economist got right. But beyond the weaponized ageist language use — which pits one generation against others — this piece makes two other major mistakes. 👉The “Over 65” Grouping Most of the research cited in this piece looks at the behavior of adults ages 65 and older in aggregate. That’s a problem — considering the entire 65-plus population as a single cohort doesn’t reflect today’s reality. Boomers view their 60s and 70s differently than previous generations. They expect to live longer, and they plan to work longer, too — because they need the money, or because they want to and can. The Boomers who are working to save money have seen their parents experience unexpected longevity and struggle to pay for care. And they have seen the cost of that care continue to rise. Other Boomers feel financially secure but find a sense of purpose, enjoyment or engagement in a job. The piece’s “over 65” mistake extends to citing an investment index that tracks “share prices of firms which do well when oldies spend big.” This index “includes companies that provide treatments for age-related diseases, leisure and tourism, and anti-ageing skincare products.” There are millions of Boomers in their mid to late 60s (and older) who aren’t interested in retirement cruises, nor in anti-aging products. Assuming they are is another example of ageism. 👉Home Ownership Assumptions The piece notes that “Few boomers are downsizing to smaller homes.” That’s true — but it misses some important facts. First, high interest rates are making it harder to sell and less appealing to buy a new home. Second, and more important, where are older adults going to go?  I’m not referring to retirement homes. I’m talking about homes that make sense for someone at age 70, 75 or 80. Less than 4% of current U.S. housing offers accessibility for older adults. And builders are not creating much more. In total, this piece’s assumptions simply don’t account for the needs of today’s diverse society. Adults over 65 are not a monolith. They’re different from each other, and different from previous generations. Many of the decisions Boomers are making are efforts to align their wealth span, health span and life span. That's not being “stingy.” That's being prudent.