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The Corporate Implications of Longer Lives

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The Corporate Implications of Longer Lives

MIT Sloan Management Review,

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Companies must wake up to the fact that retiring at age 65 won’t be an option for many. 

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Living beyond 100 years may soon become the norm for children in advanced economies, and companies must adjust their HR policies. Writing for MIT Sloan Management Review, researchers Lynda Gratton and Andrew Scott of the London Business School lay out how corporations can adjust their structures to accommodate longer lifespans and longer careers. 

Summary

As people’s life expectancies increase, corporations will need to rethink their employment models and career management policies. Most corporations operate on the assumption that people’s careers will have three phases: full-time education, work and retirement. That model worked when average life expectancy was around 70 years and corporations were offering generous pension schemes. Many young and middle-aged workers today, however, will live past the age of 100 and will need to work beyond the traditional retirement age of 65 to ensure financial security.

In contrast to tangible assets, such as earnings...

About the Authors

Lynda Gratton and Andrew Scott are professors at the London Business School and co-wrote The 100-Year Life: Living and Working in an Age of Longevity.

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