Investing in Older Workers ‘Key’ to Europe’s Economic Growth

The International Longevity Centre UK (ILC) has highlighted the economic opportunities of investing in older workers and ageing strategies across Europe.

Longer lives could be crucial in European pandemic recovery, argues the think tank, and has highlighted the potential of healthy ageing strategies to unlock ‘longevity dividends.’ It is calling for countries to better support older people’s economic contributions, particularly through greater investment in preventative health measures that support healthy ageing. The report authors are calling for governments to invest at least 6% of their health budgets on these interventions; such as vaccines, screenings, early detection and management of disease.

OLDER WORKER CONTRIBUTIONS

According to the ILC, older worker contributions across the European region are significant, and growing. In fact, cross the EU and Turkey, older people’s, working, caring and volunteering contributes more to the economy than what those countries spend on defence. ILC’s research has revealed that:

• In Germany, 77% of people aged 50-64 are in employment.
• In France, nearly one in three workers is aged 50+.
• By 2035, almost three in five (59%) of workers could be aged 50 and over in Italy.
• Over six out of every 10 euros in the Spanish economy were spent by households led by those aged 50+ in 2015.
• By 2040, 63p in every pound in the UK economy will be spent by older households.

HEALTH EQUALS WEALTH

However, the report also warns that the key barrier to realising these opportunities is poor health; limiting people’s ability to stay active as they age. Comparing countries across the G20, the “Health equals wealth” reports highlight that:

• In countries that spend more on health, older people work, spend and volunteer more.
• Increasing preventative health spending by just 0.1 percentage can unlock a 9% increase in annual spending by older people and an additional 10 hours of volunteering each year.
• Earlier this year, the European Commission adopted its Green Paper on Ageing, which set out a vision for countries to adapt to their ageing populations; including how to support healthy ageing.

HEALTHY AGEING PAPER

However, to date, there have been no announcements of an intended White Paper or binding commitments. In an open letter sent last week, the ILC Europe Network, a pan-European network on longevity, has called on the Commission to follow this up with concrete and meaningful action.

“It’s vital that this Green Paper should not be put on a shelf to gather dust, but instead be a step towards a concerted European response to ageing. [We are] calling for an EU White Paper on Ageing that commits to making European policy and practice work for all ages”, urged the signatories.

Signatories include:

• Professor Liat Ayalon, Bar Llan University, Israel
• Professor David Blane, Imperial College. UK
• Professor A Mark Clarfield. ILC Israel/Ben-Gurion University of the Negev, Israel
• Francoise Forette; Jean-Pierre Aquino and Didier Halimi, ILC France, France
• Margaret Gllis. Incoming Co-President, ILC Global Alliance, Canada
• Baroness Sally Greengross, Special Ambassador, ILC Global Alliance, UK
• Assoc. Prof. Iva Holmerová, ILC Czech Republic/Centre of Gerontology, Czech Republic
• David Sinclair, Director, International Longevity Centre – UK, UK 
• Professor Angela Kydd, Robert Gordon University, UK
• Dr Matthew Lariviere, Lecturer in Social Policy, School for Policy Studies, University of Bristol., UK
• Giovanni Lamura, INRCA – IRCCS (National Institute of Health and Science on Ageing) Italy
• Prof. Ariela Lowenstein , Gerontology Dept. Haifa University, Israel 
• Dr Catia Nicodemo, University of Oxford, UK
• Colin Sanders, IndiVille, Belgium
• Natale Gaspare De Santo, President European Association of Professors Emeriti
• Federica Previtali, Tampere University. Finland
• Lucie Vidovićová, PhD, Assistant professor, Masaryk University, Czech Rep
• Professor Alan Walker, University of Sheffield, UK

The ILC convened an expert panel discussion yesterday, together with the UK’s Department for International Trade (DIT) to discuss the joint challenges and opportunities of longer lives across the European region, and how the EU and UK can best work together to support healthy ageing. DIT also discussed its Healthy Ageing Paper – Solutions to Global Challenges, recently published by the Department for International Trade. Click here for a copy of the report.

In the US, nearly one in three older workers plan to work past 70; or actually never retire, according to a new study. Click here to read more.