Asia is rapidly ageing for two main reasons: People are living longer, and birth rates are falling. According to the World Economic Forum's Longevity Dividend report, co-authored with Marsh, the global over-65 population will grow by 53%, while the working-age population will rise by a mere 13% by 2040.
Asia's ageing population is no longer just a HR prerogative — it is now a board-level agenda. The report estimates what inaction could cost the world: $645 billion in lost productivity and $5.8 trillion in avoidable healthcare costs by 2040.
However, the upside is just as momentous. The silver economy represents a $10.2 trillion growth opportunity across Asia Pacific by 2036, driven by the ageing populations of Japan, South Korea, China, and Southeast Asia. This opportunity is closely tied to healthy ageing: if governments and businesses invest in improving the human capital of older individuals, global GDP could rise by up to 0.4% annually through 2050. Besides super-aged and ageing societies, traditionally “young” countries such as Indonesia and Vietnam are also seeing some of the fastest growth in their over-65 populations, with steep longevity transitions ahead.
Tapping into the longevity economy requires extending health, work and wealth spans in tandem, the three interconnected areas that determine whether longevity becomes a drag on growth or an economic catalyst. Poor health shortens careers, and shorter careers weaken financial security, so a setback in one span can quickly ripple all three.
Health span: Where the longevity economy begins
Philosopher Ralph Waldo Emerson wrote that “the first wealth is health”. This is also the starting point for the longevity economy: health spans, more than lifespans, decide whether those extra years add up to quality of life and robust career paths. Healthy people are able to work longer and meaningfully contribute to the workforce, and by extension, the economy.
Yet, poor health doesn't stay contained to the individual. On a macro level, healthcare systems and resources can come under strain and lead to longer wait times, while employers, employees, and governments end up shouldering higher costs. When more national capital pivots towards treating illness and reactive care, less goes towards investment in infrastructure, education and technology.
Health promotion and chronic disease prevention are core to increasing health span and driving economic growth in the longevity economy. However, short-term cost pressures and limited visibility in the returns of preventive care investment can be a deterrent for many companies.
What can governments, businesses and individuals do to build a sustainable roadmap for longevity?
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Case study | Better health, lower claims: How preventive care reduced an Indonesian telco's claims ratio by over 20%.
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A telecommunications company faced a high medical claim ratio of 85% to 90%, driven largely by chronic disease despite a workforce of mostly under-40s. Medical check-ups had also flagged employees at risk of cancer and cardiovascular disease, conditions that if left unaddressed, would take a toll on both employees and the business.
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The company analysed its medical screening data and identified 47 employees at high risk for cholesterol, glucose, and hypertension-related issues. It then launched three targeted wellness programs focused on early intervention to address the underlying causes of chronic disease. |
Within 12 months, hypertension, diabetes, and metabolic disorders had dropped out of the top 10 claim contributors. Within 24 months, the claim ratio fell to 65%, and employee awareness of chronic disease risk rose markedly across the organisation. |
Work span: Extending careers and making them count
Asia is facing a growing talent gap as older workers exit the workforce faster than younger workers can replace them. In the energy sector, for example, the ratio of workers nearing retirement to young workers entering grid roles is 2.4 to 1.
A tightening labour market can pressure companies to do more with fewer workers, and if labour constraints are not offset by productivity gains, it may slow economic growth. This is compounded by declining employee thriving levels which affect productivity.
Ageism adds another layer of complexity. It pushes older workers out of the workforce and adds to their mental strain, and it is projected to cost OECD economies up to $500 billion in lost productivity from the underemployment of adults aged 55 to 70 by 2040. As the population ages, more of the cost falls on active workers, and governments face growing fiscal exposure risk and pressure as the working-age population shrinks relative to the number of retirees.
What can governments, businesses, and individuals do to extend work spans and make them more meaningful, especially for the older workforce?
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Case study | How a private bank redesigned retirement and later-life working for an ageing workforce.
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A private bank faced an ageing workforce crisis where one-third of employees were expected to retire within 10 years, threatening the loss of critical knowledge, experience, and capability across key roles and business areas. The organisation urgently needed a retention strategy for later-life working and evolving employee needs. |
The bank partnered with Marsh to develop a workforce transformation solution addressing key areas including technology administration, governance, knowledge transfer, process redesign, reward structures, and pension arrangements. Hypotheses around retirement and later-life working were tested through employee and leadership interviews as well as surveys.
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The hypotheses were proven and the organisation achieved a more effective workforce transformation solution with three key outcomes: A flexible retirement program supported later-life working; critical knowledge and experience were retained across the organisation; and a distinctive multi-generational, multi-life-stage work design was created for employees at every career stage. |
Wealth span: Financial resilience through every life stage
Medical costs are already outpacing wages across Asia, and this pressure trickles down to healthcare institutions, governments, organisations, and individuals alike. Robust careers support the financial resilience employees need to sustain their health and independence in later life. Poor health shortens work span, and wealth span weakens with it.
Additionally, a longevity economy is built on care. Without an integrated infrastructure to support it, the whole framework fails. Many employees across Asia are already balancing work with childcare or eldercare responsibilities, and those pressures affect health, productivity, and retention. In fact, 59% of employees in Asia are caregivers, and within that group, 60% worry about obtaining affordable childcare or eldercare services, 58% worry about their physical health declining, and 56% worry about their mental and emotional health.
The toll compounds for women. A one-year caregiving break combined with the gender pay gap can cut a woman's retirement savings by 24%, leaving women more exposed to weaker work spans and thinner financial resilience.
A blind spot remains: the younger and mid-career workers. As more young people leave the workforce resulting from burnout or shift to gig roles, not only do they face financial pressure, but talent scarcity will also intensify.
What can governments, businesses, and individuals do to build financial resilience and strengthen wealth spans for all generations?
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Case study | How a Chinese tech firm turned retirement uncertainty into an 86% satisfaction rate.
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As China's retirement age reforms evolved, a technology firm faced increasing complexity in managing retirement transitions across a multi-generational workforce. Unclear implementation guidelines and employee uncertainty around retirement procedures, combined with concerns over financial and emotional readiness, put workforce continuity, employee experience, and long-term talent planning at risk. |
Marsh helped the firm build a unified retirement framework, including flexible retirement options, enhanced benefits for late-career employees, and clear operational guidelines for HR and managers. It also introduced financial education, well-being support, retirement engagement initiatives, and comprehensive employee communications. |
The firm rolled out its first enterprise-wide retirement management framework, improving consistency and cutting administrative complexity. With retirement guidebooks and checklists in place, employees reported greater confidence navigating retirement decisions, and the program achieved an 86% satisfaction rate. |
A holistic approach is key to unlocking growth in this longevity economy
At Marsh, we recognise that health, work, and wealth are interconnected in a longevity economy, and we advise governments to help our clients benefit from policy tailwinds and build future-ready strategies. There is no one-size-fits-all approach for all markets, and that's why we take a holistic approach – one that addresses them together, reduces cascading risks, and builds long-term resilience for the economy, businesses, and people. Small, practical steps today can create outsized impact and unlock trillions in gains tomorrow.
