Employers will need to thoughtfully design benefits and workforce programs if they want to succeed as the global population ages and birth rates decline, according to actuary Christine Mahoney.
Those programs and policies should accommodate the needs of all generations, from the Silent Generation to Generation Z, said Mahoney, who is a senior partner and global defined benefit/defined contribution leader for Mercer. Mahoney was a keynote speaker at the 44th Annual ISCEBS Employee Benefits Symposium in September 2025 in Minneapolis, Minnesota.
Declining birth rates and increasing longevity will affect the economies and political systems in many countries in addition to the United States and Canada, she predicted. “I think it will have as much, if not more, of an impact on the workforce you all are managing and protecting through benefit programs in the next ten to 20 years, not to mention who you are hiring.”
She cited the following statistics to demonstrate how these trends will impact the population and workforce.
- In 2050, the global population of individuals over age 65 will double, reaching 1.6 billion.
- In 2035, the U.S. will have more adults over age 65 than children under age 18.
- The percentage of workers over age 75 in the U.S. will increase by 30% in the next seven to ten years to reach about 12% of the workforce.
“That is a very different world to think about maintaining a different group of benefits for,” she said. It may also require a different view of retirement and retirement ages, she added. “If you look at demographics, if we don’t have older people staying, we’ll have a serious workforce problem.”
What Are Employer Pain Points?
Mahoney outlined the challenges that employers are dealing with in the current workforce. “Every pain point is an opportunity to do something that would make the outcome significantly better,” she said. They include the following.
- Inadequate retirement savings: People will outlive their savings by ten years in the next 35 years.
- Low financial literacy: Only one-third of adults around the world are financially literate.
- Talent shortages: “We don’t have enough workers, but we also don’t have the right workers, because the needs of businesses change so rapidly, and the skills of your workforce are not adapting at the same pace,” Mahoney explained.
- Age discrimination and inequality: This affects both older and younger workers. One report showed that 20% of workers age 55 and older said they would like to work but face barriers that stop them.
- Loneliness and lack of connection: More workers are reporting loneliness, and this affects mental health, physical health and productivity.
Succeeding in the Longevity Economy
Mahoney suggested that employers that want to thrive in the longevity economy should consider emphasizing the following principles for their workforce.
- Financial resilience: Workers who are financially resilient have better mental and physical health and are more productive.
- Universal access to financial education: Employers should consider providing education on financial concepts, ranging from saving for major expenses and emergencies for younger workers to retirement savings for older workers.
- Preventive health care: This includes both physical and mental health care with the idea of ensuring not just a long lifespan but a healthy one. In addition to lowering health care costs for employers, healthier workers are more productive and miss less work. Employers should recognize that healthy aging is not only for the elderly—It should be considered for all age groups to build lifelong healthy habits.
- Lifelong skill building: Employers need to provide opportunities such as retraining for older workers and allowing them to make lateral or downward moves. “People want to stay in the workforce ten more years, but they want a smaller role,” Mahoney said. Employers need to make that culture acceptable and respond faster with skill update programs.
- Social connection: Having strong social connections at work is an important part of healthy aging. But employers can also play a role in encouraging social engagement outside the workplace—through corporate philanthropy or other programs that get workers invested in the community.
- Longevity equality: Programs should create opportunities for all age groups.
Emerging Benefits
Mahoney identified some specific benefits that may meet the needs and desires of different generations, including:
- Emergency savings accounts
- Alternative work schedules
- Flexible retirement options
- Technical training
- New decumulation or innovative investment options for defined contribution plans
- Hearing benefits
- Menopause support
- Benefits that support brain health.
Employers that improve workforce planning and respond with the right benefits will be better prepared for these demographic trends and won’t have labor shortages or excess workers in the wrong places, Mahoney predicted, adding that they should also be more successful. “A multigenerational workforce is a more innovative workforce, and figuring out how to take the experience and the knowledge of older generations and marry that with the native technology knowledge of Generation Z—I think that that would make a different company in terms of the products you produce, the way you produce it, how you participate in the economy and the success of your organization.”
She closed her remarks with the following advice for employers and benefit leaders: “Ask the question, ‘Do my benefits and policies close doors for any of the age groups that sit in my organization?’ and work to make sure that the answer to that is ‘no’ so that you have a thriving workforce in ten years.”
