Investigating an Economic Longevity Dividend

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Between now and 2050 nearly every country around the world is expected to see an increase in its average age and in the proportion of the population aged over 65. This statistic forms the basis of an ageing society narrative that says because there will be more old people, economic growth will slow and fiscal expenditures increase due to their higher pension and health costs. The importance of this topic is recognized by the UK Government who have made an ageing society one of their 4 Grand Challenges in their Industrial Strategy (published in 2017).The ageing society narrative tends to dominate discussion and focus on the negative consequences of there being more old people. However, what receives relatively little attention is the fact that it isn't just there are more old people but how we are ageing is changing. We are, on average, living longer and are healthier for longer. The average UK citizen, for instance, has never been older but also has never had so long left to live. This is not unambiguously an ageing society. This is good news at the individual level but should also be good news for the economy.The purpose of this research is to identify more clearly how this better ageing effect works (a longevity effect), to quantify how important it is, and to focus on policy measures that can help support it so that both as individuals and as a society we gain. In other words, the research seeks to understand better the gains in life expectancy that have been achieved, the value of healthy longevity, and how to maximize the economic gains so as to achieve the positive economic outcomes from longer healthier lives rather than negative economic consequences of an ageing society.