Written by Dr George Shelton

The narrative around ageing needs to change.

Too often, an ageing population is portrayed as a burden, something that will overwhelm healthcare systems, drain pension funds, and slow economic growth. But this view is narrow and outdated. In reality, longer lives offer the potential for longer contributions, economic, social, and personal, if systems are designed to support transitions across life stages.

As the World Economic Forum's 2025 report on Future-Proofing the Longevity Economy puts it:

“In a multistage life, everyone can contribute and benefit at different times depending on their circumstances.”

What we need is not incremental reform, but a strategic redesign. One that enables people to shift careers, start businesses later in life, or become informal caregivers without financial penalty. One that supports lifelong learning, equitable care systems, and healthy ageing. When more people can remain healthy, skilled, and economically secure, the entire economy grows, across all generations.

The urgency is clear:

• By 2050, 1.6 billion people worldwide will be 65 and older—one in six globally, and one in four in Europe and North America.

• In Asia, 60% of the world's seniors will live in the region by 2060.

• Countries like Japan, South Korea, and Italy will see the old-age dependency ratio climb beyond one in three.

• By 2080, those 65+ will outnumber children under 18 for the first time in history.

• Simultaneously, sub-Saharan Africa will experience the fastest growth in working-age populations, creating opportunity and migration pressure.

• As of 2025, nearly one in four people lives in a country that has already peaked in population size, including China, whose population declined in 2022 for the first time in 60 years.

This demographic transition is seismic and global. Yet, a comprehensive public dialogue around the implications of the longevity economy remains largely absent. As WEF notes, a sound pension system is just one part of the equation.

This article aims to fill that gap.

We explore how insurers, policymakers, and technology providers can shift from reactive fixes to proactive redesigns. We break down the key demographic and economic trends, examine emerging models in insurance and care, and identify the questions we must answer now to build systems that serve a longer-living world.

It's time to design for the future of life—not just the end of it.

Understanding the Ageing Society: Challenges and Solutions - What's Happening and Why It Matters

People are living longer thanks to medical advances, better nutrition, and improved living standards, offering new opportunities and benefits associated with a longer life. The world's population is experiencing a global trend of population ageing, with an increasing proportion of older adults in society. In the past, life expectancies were much shorter, and the age structure was very different, with fewer people reaching old age. Now, birth rates are falling in many countries. These two forces have flipped the population pyramid: more older adults, a shift in ages across the population, and a significant increase in old age groups, with fewer young workers. That puts pensions, healthcare systems, and insurance models under pressure.

As mentioned above, by 2050, more than 2.1 billion people will be over 60. The dependency ratio rises as the population ages, meaning fewer working-age people support a growing number of retirees. That imbalance impacts everything—from GDP to healthcare costs to who buys insurance and how they use it.

This shift demands action. Society must adapt to these demographic changes. The systems designed decades ago for shorter lifespans and steady workforce growth no longer fit today's realities. We need new thinking, new products, and new policies.

The economic impact of population ageing is already here

Longer lives mean longer retirements and greater financial need. Pension systems in many countries are under stress. In Asia alone, the pension savings gap is projected to reach $74 trillion. That number is not just theoretical. It affects how people retire, what they can afford, and how long their money lasts. Ensuring income security for older adults is crucial to supporting financial independence and reducing poverty in ageing populations.

At the same time, older adults are reshaping the economy. Instead of spending on material goods, many prioritize travel, wellness, and home improvements. That shift is a chance for businesses and industries, such as the beauty and wellness industry, to design products and services for an ageing customer base that wants quality of life, not just care. The economic participation of older adults benefits businesses and society, including increased social contributions and a broader consumer market.

Healthcare, healthy ageing, and long-term care are becoming urgent issues

Chronic illness, mobility challenges, cognitive decline, and age-related disease become more common with age, increasing the probability of death at a given age. As people get older, mortality and death rates rise, and aging leads to a higher risk of disease and death. Ageing results from biological processes that accumulate over time, causing physical and mental decline. The need for care and support varies across different ages, with older adults at greater risk of requiring long-term care. In the U.S., the average annual cost of nursing home care was $94,000 in 2021. However, only 1 in 10 adults has private long-term care insurance. Many mistakenly believe Medicare covers these services. In reality, Medicaid pays the cost—but only if someone meets strict income requirements.

Some programs—like PACE (Program of All-Inclusive Care for the Elderly)—offer integrated services that allow older adults to remain at home while receiving medical and social care. These models work but need expansion and sustainable funding.

Healthy Ageing: Shifting the Focus from Years to Quality

As global life expectancy continues to rise, the conversation is shifting from simply adding years to ensuring those years are lived in good health. Healthy ageing is now recognized as a cornerstone of public health and economic stability. The World Health Organization defines healthy ageing as "the process of developing and maintaining the functional ability that enables well-being in older age." This approach is especially important as the world's population is experiencing growth in the proportion of older persons, with the United Nations projecting that by 2080, there will be more people aged 65 and over than children under 18.

Evidence suggests that healthy ageing is shaped by a combination of factors—lifestyle choices, nutrition, access to healthcare, and supportive environments all play a role. Research published in the International Journal of Epidemiology and by the National Academy of Sciences highlights that women tend to live longer than men, with the average life expectancy at birth now at 73.3 years for women and 69.9 years for men in 2024. However, the gap is narrowing as improvements in health and education benefit all genders.

Recent decades have seen a remarkable increase in global life expectancy, driven by medical advances, better nutrition, and improved living conditions. According to the WHO, the average life expectancy at birth is expected to reach 77.4 years by 2054. But living longer brings new challenges: societies must adapt pension systems, healthcare, and social security to support a growing population of older adults. The Cambridge University Press and European Journal of Epidemiology have both emphasized the need to address age-related diseases—such as refractive errors and chronic conditions—that can affect quality of life in older age.

Supportive environments and strong social connections are also critical. The National Academy of Sciences has shown that older people with access to community resources, education, and healthcare experience better well-being and are more likely to remain active and independent. Governments and healthcare systems must prioritize these factors to ensure that increasing life expectancy translates into healthier, more fulfilling lives.

Ultimately, the goal is not just to extend life, but to enhance the quality of those extra years. By focusing on healthy ageing, societies can help older persons remain productive, engaged, and resilient—benefiting families, economies, and the world. As the United Nations and leading research institutions have made clear, investing in healthy ageing is essential for the well-being of both individuals and societies. Governments, healthcare providers, and communities must work together to create supportive environments, improve access to healthcare, and promote education, ensuring that longer lives are also better.

Migration can ease some of the pressure

To keep populations stable, more than 60 countries will rely on immigration by 2100. Each country experiences demographic change as people age, affecting workforce size, economic productivity, and the demand for social care. Immigration can help offset workforce decline, support economic productivity, and contribute to social care sectors. But it requires thoughtful policy—welcoming environments, inclusive integration programs, and fair labor protections.

Return migration also matters. When people return to their home countries with new skills and resources, they contribute to growth and resilience. People age differently depending on the country they return to, which can influence health outcomes and societal roles. Governments must treat migration not as a short-term fix but as a strategic pillar of long-term planning.

Insurance needs a serious upgrade

Most traditional insurance products weren’t designed for people living 20–30 years post-retirement. Life and health insurance models must evolve. Today, only 17% of insurers have advanced predictive underwriting capabilities. That’s a gap, and an opportunity.

Technology offers solutions: AI, real-time health monitoring, wearable devices, modular insurance models, and new technologies that support elderly independence and healthcare. These tools allow personalized pricing, proactive health management, and better risk assessment. Technologies have contributed to improved insurance models and outcomes by enabling prevention-focused insurance that can reduce claims and improve results.

Some insurers are already testing new models, including the development of innovative insurance products.

Back in 2017, Swiss Re demonstrated leadership by convening conferences such as "Next Generation Insurance Customer: Solutions for an Ageing Society," which brought together insurers, businesses, and tech startups like LifeQ and GOQii. These events fostered direct partnerships and knowledge exchange to develop solutions for older adults.

At present, Generali Group is developing comprehensive "aging-well" solutions for customers aged 65+, focusing on both health and financial support. Their "Lifetime Partner Model" involves partnerships with technology firms and public health organizations to integrate health monitoring, financial planning, and personalized support. The aim is to provide flexible, personalized insurance and wellness solutions that support healthy aging and intergenerational wealth transfer.

Another example is MAPFRE, in collaboration with Accenture, which has developed service models that go beyond traditional insurance. Their approach integrates technological tools for prevention, personalization, and ongoing well-being management, addressing the intersection of health, wealth, and longevity. This partnership supports the development of insurance products that promote healthy aging and financial security.

Policy and advocacy must catch up

While the 1982 Vienna Plan of Action and 1991 UN Principles for Older Persons laid important groundwork, today’s ageing challenges are more complex. We need stronger protections—especially for older women, who live longer but often retire with fewer resources. There is a critical need for follow-up on these international agreements, as highlighted in the Proceedings of the National Academy of Sciences, which provides policy recommendations for advancing the rights and well-being of older adults.

Regulators must adapt, and the government must lead in this process. That means enforcing solvency requirements, increasing transparency, and ensuring insurance products meet the real needs of multi-decade retirements. Policies must support integrated care, better housing, community health, and digital literacy for older adults.

Innovation is possible and necessary

Insurtech startups are already pushing boundaries. Hybrid products are emerging: protection + savings + wellness tracking in one offering. The venture client model—where insurers partner with startups early and test solutions in real settings—helps reduce risk and build products that work.

An example can be Assured Allies, an insurtech company focused on successful aging that collaborates with reinsurers like Wilton Re. This partnership leverages AI-driven health monitoring and behavioral science to create personalized longevity risk products, incentivizing wellness and extending healthy lifespans. 

This isn't about incremental change. It’s about building a new playbook for longevity, including developing science-based insurance solutions.

Older adults need more than services—they need connection

Loneliness is a health issue. Older adults with strong social networks have better mental and physical outcomes, especially as life expectancy increases. Intergenerational storytelling, family traditions, and community engagement matter. These practices build resilience and give meaning, and society is responsible for supporting connection and inclusion at older ages.

Programs that prioritize connection, not just care, should be part of national strategies for ageing well.

What happens next? A shared responsibility

Here’s what we need to focus on:

• Insurers: How will you design products that adapt to lives that last longer and look different, considering every factor that affects longevity?

• Policymakers: How will you reform pensions and healthcare to meet current realities?

• Technologists: How will you ensure innovations are accessible and ethical?

Most people will be affected by these demographic changes, as the global population is aging and living longer than ever before. This is a complex, global challenge. For example, in 1800, life expectancy was less than half of what it is today, dramatically rising due to advances in healthcare, sanitation, and living standards. We need better data—especially mortality data—to inform our understanding and guide future solutions to address these changes. But with coordinated action, smart policy, and inclusive innovation, we can create systems supporting people at every life stage.

Looking Forward: A Better Model for Longer Life and Ageing

The future doesn't have to be uncertain for older adults. But we need to move—now.

Start with better data. Invest in scalable care models. Build flexible insurance products. Fund intergenerational programs. and ensure older people have a say in decisions that affect their lives.

Ageing is not a crisis—it's a reality. The question is whether we're ready for it.

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