Sad to say, gloom dominates much of the discussion about aging. Among the worries: People aren’t saving enough, and living standards will plunge at retirement. The Social Security system will buckle from too few workers supporting too many retirees. The swelling ranks of elderly people will send medical costs skyrocketing. More older people means less risk-taking.
Forget the age apocalypse. The aging of America’s population represents a historic moment to create an institutional and cultural infrastructure for a more inclusive society and vibrant economy. Staying active and connected with age helps keep older adults healthier and boost economic activity.
The opportunities for change include increasing the quality and flexibility of work; supporting lifelong education and skills; promoting entrepreneurship throughout a lifetime; and embracing multigenerational living.
Skeptical? Pick up a copy of “Healthy to 100: How Strong Social Ties Lead to Long Lives.” Author Ken Stern — founder of the Longevity Project and the “Century Lives” podcast — is the former CEO of NPR. He travels overseas to gather examples of initiatives and institutions that promote healthy aging and forge strong links between generations.
Japan, Singapore, Italy and other places have older populations than the U.S. Stern highlights creative institutional arrangements that support healthy aging in these societies.
“Healthy to 100” isn’t a personal finance book, yet it offers many savvy personal finance insights. Chapters end with “Three Tips for Healthy Aging” that individuals can pursue on their own.
Stern’s examples multiply into a convincing and hopeful argument that it pays to create spaces and opportunities for every adult — no matter their age — to stay engaged with the world around them. Social health (connection, meaning and purpose) is vital to healthy aging. Good social health is also a boon to the economy.
For instance, a recent McKinsey Health Institute report estimated if more older adults who want to work in the U.S. re-entered the workforce, it could unleash about $1.7 trillion in potential economic power annually. If older adults found it easier to volunteer, it would result in an additional 100 billion hours of volunteering.
Stern’s perspective offers a brighter and more realistic future than the typical doom story about aging. The personal finance message is that nurturing connection and lifelong learning improves finances.
More broadly, everyone stands to gain — emotionally, physically, financially and economically — if society supports and encourages engagement throughout life, including the later years.