For the first time in human history, older populations are growing at a faster pace than the youngest cohorts, ushering in an unprecedented demographic shift worldwide.

We’re living longer. By 2050, 2.1 billion people - nearly 22% of the global population - will be over 60, including 426 million over 80. In contrast, 50 years ago just 8.38% of the total population were over 60.

We’re also ageing better. A 70-year-old in 2022 has the cognitive ability of a 53-year-old and the physical ability of a 56-year-old from two decades earlier.

To understand the implications of this shift in increased lifespans (see chart below) so that we can better support our clients to make the most of the longevity opportunity, Fidelity International partnered with the National Innovation Centre for Ageing (NICA) to conduct proprietary research integrating a global survey by Opinium across 13 markets and 11,800 individuals aged 50 and over.

Share of individuals ages 65 and above (% of total population)

Source: International Monetary Fund, April 2025. Data is based on United Nations World Population Prospects and IMF calculations. Note: the bars denote the share of the older population (ages 65 and above) in the total population by the end of the respective decade. Data labels in the figure use International Organization for Standardization (ISO) country codes. AEs = advanced economies; Adv. Asia and Pacific = advanced Asia and Pacific; EA = emerging Asia; EMMIEs = emerging market and middle-income economies; excl. = excluding; LAC = Latin America and the Caribbean; LIDCs = low-income and developing countries; MENA = Middle East and North Africa; SSA = sub-Saharan Africa.

A tension between aspiration and preparedness

In terms of longevity preparedness, our research findings reveal a persistent disconnect between aspirations for a longer life and preparedness to support it (see chart below), leaving a trail of uncertainty for those approaching retirement (pre-retirees) and those already drawing retirement benefits.

Percentage of survey respondents whose retirement savings projected to fall short by 10 years or more, by average life expectancy and assumed 100-year lifespan

Source: Fidelity International, NICA, Opinium, October 2025.

Consider the following:

• Longevity readiness depends on four interconnected pillars: financial stability, physical health, emotional wellbeing, and social connectivity. Our research shows a direct link between financial planning and overall preparedness across all pillars (see chart below). When finances are secure, the other pillars - health, emotional wellbeing and social connectivity - are more stable. When they are not, the entire structure is weakened.

Retirement preparedness among pre-retirees, with plan vs. without plan

Question: How well-prepared for retirement do you feel?

Source: Fidelity International, Opinium, October 2025. Notes: ‘With plan’ and ‘without plan’ refers to retirement planning. For the survey, the following definitions apply - financial stability refers to income and resilience to meet needs (including emergency costs), manage risks and preserve autonomy; physical health pertains to strength, mobility and vitality to remain independent; social connectivity maintains a sense of belonging and support through relationships, community and other shared activities; and emotional wellbeing sustains purpose, identity, and peace of mind.

• Two in five survey respondents aged 50+ underestimate their lifespan by 10 years or more when planning for retirement against the average life expectancy in their location, according to NICA’s analysis based on survey results. This shortfall leaves many at risk of running out of money later in life. 
• Nearly half cite financial worries as their top retirement concern, yet over a third have done no retirement planning, and just 15% seek financial advice. Drilling down among pre-retirees and retirees, a quarter or less have prepared a budget, created a retirement plan or identified potential income streams in retirement. Nearly a fifth of pre-retirees have either lost track, have never reviewed all their retirement assets or just don’t know whether they even have retirement savings.

Mitigating longevity risk

As a prerequisite to supporting the other three pillars of longevity preparedness, strengthening the financial pillar is crucial. There are essentially four options: spend less; save more; work longer; or increase investment returns. Working longer - even part-time - shortens the retirement horizon, increases savings, and delays withdrawals. As lifespans stretch, working longer is not necessarily a reluctant extension but an opportunity for continued growth and engagement.

In addition to working longer, people have two other options to reduce longevity risks:  saving more and investing to optimise retirement assets. Longer lifespans have increased the risk of individuals outliving their savings. At the same time, they are carrying more of the financial burden of both saving and investing for retirement.

On average, respondents expected an average annualised investment return of 4.9%. In terms of investments, nearly two-thirds of the respondents say they are invested in cash or cash equivalents. In comparison, a third are invested in equities while a fifth have some exposure to government and corporate bonds (see charts below).

Growth by asset class

Past performance is not a reliable indicator of future returns.

Source: Refinitiv, MSCI World Index, FTSE World Government Bond Index and ICE BofA US Treasury Bill Index (G0BA), total returns from 31.12.99 to 31.12.24. *ICE BofA US Treasury Bill Index (G0BA) used as a proxy for cash.

Investment exposure, by asset class

Question: Which, if any, of the following savings and investment products do you currently have?

Source: Fidelity International, Opinium, October 2025.

Seizing the longevity dividend

The challenge – and the opportunity – is how to redesign incentives for a longevity society. The most effective solutions for a longevity society will be those that combine structural changes in policy including health, care, product and service innovation across a range of sectors, with personalised guidance and support, along with trust-building initiatives that foster confidence in both public systems and financial institutions.

Retirement planning is about recognising the interconnectivity of financial security with emotional wellbeing, social connectivity and physical health. This holistic approach will require collaboration from governments, communities, corporations including the financial sector, and the individuals themselves.