The International Monetary Fund (IMF) has released data suggesting that people in their 70s today have the same cognitive and physical abilities as those in their 50s did in 2000. A 70-year-old in 2022 had the same cognitive function as the average 53-year-old in 2000, and their physical health, as measured by grip strength and lung functionality tests, was on par with 56-year-olds from 25 years ago. These findings, based on surveys of one million people aged 50 and older across 41 countries, indicate that older generations could remain active in the workforce much longer than previously thought.
The IMF predicts that this rapid improvement in health among the elderly will continue over the coming decades, albeit potentially at a slower rate. However, the IMF warns that governments, particularly those with significant debt, cannot afford to allow these healthier and sharper older individuals to retire early. Encouraging older generations to remain in the workforce could help offset the growing imbalance between workers and retirees.
Improving cognition in older generations
The UK state pension age is currently set at 66 for both men and women, with plans to rise to 67 between 2026 and 2028, and eventually to 68 between 2044 and 2046 for those born on or after April 5, 1977. The IMF encourages governments to reconsider retirement policies, potentially raising pension ages and reducing early retirement benefits to alleviate fiscal pressures.
In addition to promoting longer working lives, the IMF stresses the importance of supporting policies that encourage healthy ageing and close gender gaps in the workforce. Improved childcare support and parental leave policies are also advocated to counterbalance the slowing population growth due to declining birth rates. Fertility rates in England and Wales dropped to the lowest rate on record in 2024, with women having an average of 1.44 children between 2022 and 2023.
Addressing these demographic changes through supportive policies could provide significant economic benefits in the long term, according to the IMF.
Image Credits: Photo by Emma Simpson on Unsplash
