Economic Well-being at Older Ages

Worldwide, populations are ageing rapidly due to gains in life expectancy and declines in fertility. The trend towards a growing number and share of older persons is projected to continue in the foreseeable future. As the number of older persons grows, their socioeconomic and demographic characteristics will evolve as well, with implications for economies, societies and public budgets. While long-term trends are hard to predict, assessing the characteristics of current and future cohorts of older persons provides important insights into the future of our ageing world. On the one hand, future cohorts of older persons are likely to be healthier and more educated—and therefore more productive—than those of today, despite the impact of the Covid-19 pandemic. Continuing scientific and technological innovations, including medical and pharmaceutical advances, will allow many to enjoy healthier and longer lives. On the other hand, the information presented in this brief indicates that successive cohorts of youth and adults are increasingly insecure in the labour market and more and more unequal in both developed and developing countries with available data. Without swift and bold policy action to counter this trend, future cohorts of older persons may be more unequal than those of today.