We’re living longer. That’s as true across the globe as it is in the U.S., and it is driving change in retirement, social and workplace norms, the economy and much more. The better we understand these changes, the challenges and opportunities increased longevity brings, the better positioned we as a society—and as individuals—will be to take advantage. That’s why we spoke to Mike Hodin, the executive director of the Global Coalition on Aging, who offers insight on the deep structural changes driving the retirement crisis.

People are living longer. Can you give us a sense of the scale of the changes that this is bringing?

Hodin: The scale of the transformation is huge. It’s as large a mega trend as any that exists today and, I believe, at the same scale as any major historical, sociological or economic change we’ve ever seen. It’s on the scale of the shift from agrarian to industrial society or the women’s movement. It’s historic and profoundly disruptive.

Is this a permanent change or a one-time adjustment for the Baby Boomer generation?

Hodin: It is through the 21st century, and it is not only connected to the baby boomer bulge. With the advances in science and medicine, hundred-year life spans are now a matter of course. That’s never been the case before in human history.

At the same time, we’re seeing stunningly low birth rates everywhere on the planet as societies modernize and urbanize. This is true across emerging markets, in Africa, Asia, and Latin America. Then there are the more industrialized nations. Look at Japan. By about 2020, they’re going to have more than one-third of their population over 60, rapidly approaching 40 percent. Clearly, the systems that were put in place in Japan after WWII—pension, retirement, health care, and more—will no longer work.

How would you characterize the situation in the U.S.?

Hodin: As you would expect, the U.S. is a huge beneficiary of longevity. We are at the top of the list along with our European friends and the Japanese when it comes to healthy aging. We continue with a birthrate of about 2.1, which is replacement level, whereas our industrial democratic partners—countries like Germany, the UK, Italy, the Netherlands, Australia, Canada and of course Japan are all under 1.5. As a result, we are actually in a healthier economic place where we can manage this transition process a little bit easier than most of the Europeans, the Japanese or some of the others who already have so many more old than young.

Even so, we need to prepare for this transformation, correct?

Hodin: Many of the institutions, public policies and ways we conduct our lives were invented in the 20thcentury. They need to be challenged, even completely overhauled. We can start planning for that on a public policy level. Think about Social Security or Medicare-type programs. The arithmetic just does not work. As a society, we will have to manage that.

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