Technology can turn Asia’s ageing population problem into a longevity dividend

As advances in technology extend productive lifespans, cut the physical demands of many jobs and enable remote working, Asia should start seeing 80 as the new 60
To tap the silver generation, governments and companies must invest in tech training and ditch the old ageist mindset

Patrick Winter

Published: 10:00pm, 28 Aug 2022

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The Covid-19 pandemic has prompted a fundamental shift in attitudes towards technology in the workplace. Concerns that computers would render workers obsolete are giving way to the appreciation that technology could free humanity from mundane tasks and enable more flexible ways of working and interaction.

Crucially, digital technology will help keep older workers in employment and bring retirees back by permitting more flexible work arrangements and reducing the physical or cognitive demands of certain jobs. If mindsets can change, these advances could create an economic growth opportunity while addressing the problem of supporting a growing elderly population.

This could be a vital breakthrough in the Asia-Pacific, which is ageing faster and more dramatically than the rest of the world. By 2050, the region will be home to around 1.3 billion people aged over 60 years – triple the number in 2010 – accounting for a quarter of the population.

That is a problem when the retirement age in most Asia-Pacific countries is 60 years or lower. In China, where the working-age population has been in decline since 2012, the average retirement age is just 54.

Throughout the Asia-Pacific, most older workers want the option of remaining in employment longer, but are unable to for reasons including mandatory retirement, inflexible working arrangements, a lack of training and technological support, or simply age discrimination.

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The trouble is, while attitudes to technology have changed markedly, perceptions of old age have not. We remain tied to outdated retirement notions that fail to reflect the lifestyle and healthcare changes that allow people to remain healthy and productive for much longer.

An average 30-year-old in the developed world today has a 50 per cent chance of living past 100. And within that recalibrated notion of what constitutes a typical lifespan, there’s a strong case to be made that 80 is the new 60. Our thinking about ageing needs to catch up.

It is, of course, better for the economy if people remain productive for longer. But this is a sensitive topic for policymakers: many in today’s workforce would be horrified by the idea of working for another two decades before they can access their pensions.

For people who wish to continue working, however, there is more to gain than just monetary reward. Growing evidence suggests early retirement leads to a greater risk of mortality, depression and cognitive decline.

Working past the retirement age, however, has been linked to better health and longevity. It is arguably a moral imperative to help people remain active, mobile and employed for longer, as lifespans increase.

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One common misconception about older workers is that they are less energetic, less likely to invest in new skills, and less positive and excited about their work. Yet they are often more committed, loyal and engaged. Employers stand to benefit from their experience, ability to mentor and lower propensity to job hop. A more diverse workforce, including generational diversity, has also been shown to improve organisational performance.

There are three main ways in which technology is helping older workers remain in employment. First, healthcare technology is extending their productive lifespan. Second, technology is reducing the physical demands of many jobs – Japan, for example, is investing in robotics and exoskeleton suits for older manufacturing workers. And third, technology is enabling a work-from-home culture, allowing workers to acquire skills through virtual platforms and find jobs through online matching.

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However, the rise of technology also carries risks for the Asia-Pacific. Given the scale of manufacturing activity across the region, many risk losing their jobs to automation as smarter machines take over more complex tasks. Digital skills are also lacking across the region.

As Asia’s demographics shift, however, technology presents a way to generate more value from workers, driving forward economies and supporting ageing populations. Just as the mission to develop supply chain resilience calls for companies to reconsider the benefits of local manufacturing, achieving workforce resilience will require rethinking the role of older workers.

To capture the full potential of this longevity dividend, governments and businesses must invest in upskilling their workforce to harness the power of technology so that it will serve rather than replace them.

It is time to cast aside the notion that older people are an economic burden and embrace the silver generation as an untapped economic resource that will prove vital in keeping economies flourishing.

Patrick Winter, an accounting professional with more than 30 years’ experience, is EY Asia-Pacific area managing partner. The views in this article are solely those of the author