A new international report launched this week ahead of the G20 Finance Ministers’ and Central Bankers’ meeting by the International Longevity Centre UK (ILC-UK), the UK’s specialist think tank on the impact of longevity on society, unveils the significant, and growing, economic impact of older workers across the G20:
- Nearly 1 in 3 workers across the G20 is already aged 50 and over – this could rise to 40% of the workforce by 2035.
- In 2014, workers aged 50 and older generated every third dollar earned across the G20. By 2035 this cohort is projected to generate nearly 40% of all earnings.
- If the G20 countries studied enabled older people to work at the same rates seen in Iceland, they could see a GDP gain of USD3.7 trillion – averaging 7% of GDP.
The report argues that leveraging the economic contributions of older people will be instrumental in the global post-pandemic recovery, and that addressing health barriers to work for older people can unlock a significant “longevity dividend”.
ILC-UK analysis finds higher rates of employment among older people in countries that spend more on health as a proportion of GDP. Across countries, a 1 percentage point increase in health spending is associated with a 3 pp increase in the employment rate for people aged 55 to 64. The report argues that countries also need to address other known barriers to work for older people, such as non-inclusive workplaces, in order to maximise the potential longevity dividend.