Longevity Economics and Financial Well-Being -11oz

As life expectancy for the world’s population increases and birth rates decline, new approaches are needed to address social and economic challenges. A study by the World Economic Forum details the principles to be followed to guarantee the well-being and prosperity of societies amid this demographic paradigm shift.

The success of socio-economic development leads to population ageing. Improvements in nutrition, medicine, sanitation, education and economic well-being, which increase the life expectancy of a population, also include a decline in the birth rate, either due to the migration of rural populations to larger cities or because of people. There are other priorities.

The point is that The world is aging fast, People over the age of 60 already represent 11% of the world’s population and this figure will increase to 22% by 2050. In Spain, it is expected that on this date there will be 23.3 million people over the age of 50, which is half of the population.

This will have significant economic and social impacts. As life expectancy becomes longer, The proportion of the largest population with economic dependence increases, Also, there are fewer people who can contribute to paying the pensions of the growing population.

i.e, It is difficult to guarantee the well-being of this aging population, According to data According to the World Health Organization, while life expectancy has increased by more than 6 years from 2000 to 2019, healthy life expectancy has increased by just over 5 years.

Therefore it becomes necessary Implement new measures to ensure that the longevity economy does not run counter to the well-being of the entire population And will have a positive impact amid the changing global demographic landscape.

6 Principles of Longevity Economics

He report The World Economic Forum recognizes that Solving longevity problems on a global scale is not easy, as the reality of each country is different: Different pension and retirement systems, with different retirement ages and different options according to gender or profession. However, it proposes a set of six principles to which companies, governments, and societies can subscribe.

  1. Ensure financial stability ahead of major life events. Nearly 40% of the world’s population faces financial instability due to unplanned career break, illness or unexpected retirement and it would be impossible or very difficult to access emergency funds within 30 days. Two-thirds of the population are worried about not having enough money for normal monthly expenses and if their income were to drop, half would lose their savings within a month, while a third would run out within a week. Savings will be gone.Therefore, public-private collaboration should be encouraged to design policies and programs that protect people from falling into poverty as a result of major life events and provide workers with access to financial savings vehicles and insurance to help them financially Can get help. There is no risk of running out of savings.
  2. Provide universal access to financial education. Only 33% of the world’s population has adequate financial literacy, contributing to economic inequalities that are strongly correlated with life expectancy disparities. In other words, a large portion of citizens do not have the necessary capabilities to manage their finances effectively.Financial education is an essential essential qualification in the daily life of citizens. It is difficult to take right decisions in household management, savings planning, applying for a loan or taking a mortgage if we do not have minimal financial knowledge. As a result, there is a need for comprehensive and unbiased financial education to enable people to make informed financial decisions.
  3. Prioritize healthy aging as the foundation of a longevity economy. The main reason for older people leaving jobs before retirement age is their deteriorating health. 80% of adults in developing countries are concerned about the cost of medical expenses and spend one-fifth of their lives suffering from disease.The focus should be on equitable access to health services that can facilitate the well-being of both the individual and society in general through prevention and medical care. Trying to delay or avoid the emergence of diseases, especially chronic diseases, and accidents because of the financial impact they have on the individual and society.
  4. Develop lifelong occupations and skills development to promote multi-generational employment. Globally, 25% of people aged 55 and over want to work, but cannot because they have difficulty finding opportunities. Ageism or technological barriers are some of the obstacles they face and due to which they are expelled from the system even if they want to continue working.Demographic changes and technological innovations require that occupations and training adapt and evolve, allowing people to extend their working years as long as they wish. Continuous training and permanent updating should be normal for people and companies, and supported or promoted by governments and organizations.
  5. Design systems and environments for social connection and purpose. The study emphasizes the importance of social connectedness. Socially isolated older people are at greater risk of disease and premature death. In fact, there are many studies that have been able to scientifically verify the relationship between loneliness and disease.The design and promotion of systems and environments for social engagement need to be encouraged and thereby mitigate these impacts. At the same time, we must fight against ageism and thus avoid this double discrimination that isolates people over 50 from society and which can lead them to poverty.
  6. Address long-standing inequalities, including gender, race and class differences. Pensions are not distributed equally, with women receiving on average 26% less retirement pension than men. Within the same country, there are situations of inequality in life expectancy depending on the income level of citizens, or their ethnicity.Advocating for equal pay and pensions, as well as supporting informal carers, are important elements in ensuring that the benefits of financial security and longevity can be more accessible to all.

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