The wealth implications of living for 100 years
 | Q&A with Dr. Damien Ng, Senior Thematic Research Analyst, Bank Julius Baer & Co. Ltd. |
What are the main demographic forces reshaping retirement and wealth planning?
The numbers are striking. In 1960, less than five percent of the global population was aged 65 or older; by 2024, that share has doubled to ten percent. Looking ahead, more than a third of people in the EU, China, and Japan are expected to be 65 or older by 2050. At the same time, fertility rates have dropped sharply, from 3.3 births per woman in 1960 to 2.2 today, with projections pointing to a continued decline. This shift places considerable strain on the social contract in which each generation supports the retirement of the previous one. In high-income countries like Switzerland, for instance, the ratio of working-age adults per elderly person fell from around six in 1960 to three in 2024. The trend is expected to drop further. By 2050, there will be two working-age adults for every person over the age of 65. With fewer workers sustaining a growing retiree base, governments will face mounting pension pressures, making individual wealth planning not just advisable, but indispensable.
What financial challenges come with living longer?
Living longer comes with a set of significant financial challenges. Healthcare is an obvious one, as maintaining health throughout one’s lifespan involves ongoing investments in preventive care, screenings, therapies, and healthy living. Lifestyle choices add to this complexity, with some individuals relocating to countries that offer a better healthcare infrastructure – a decision that is likely to entail issues around taxation, visas, and integration into local society. On top of that, longer periods of independent living mean spending more on home support, personal services, and sustaining a quality of life. Conventional retirement planning models focused solely on accumulation are therefore increasingly insufficient in this environment. Structured and forward-looking wealth strategies are required.
How does longevity affect family and succession planning?
The convergence of several living generations naturally increases the potential for friction, particularly when it comes to questions of wealth transfer and inheritance. The growing global nature of families further complicates matters, as cross-border estates must contend with multiple tax regimes and differing inheritance laws. Without careful planning, even substantial dynasties risk decline. To preserve family wealth and legacy, it is crucial to establish clear strategies, transparent communication, and well-structured estate tools such as wills and trusts. For portfolio managers, actively engaging the younger generation early is increasingly vital to ensure continuity and long-term client relationships. As the Julius Baer Global Wealth and Lifestyle Report 2025 reveals, the majority of high-net-worth individuals (HNWIs) would adjust their wealth strategy to cover an increase in their lifespan. The measures range from reviewing their existing wealth structure and rebalancing their portfolios to re-evaluating retirement goals.
What is the role of financial planning in navigating this paradigm shift?
A robust wealth strategy must go far beyond simple asset accumulation. It should take into account all assets, liabilities, and cash flows, and be revisited regularly to stay aligned with changing goals and circumstances. Many families find it useful to separate assets into distinct pools or ‘buckets’ tailored to specific life stages or objectives, such as intergenerational transfers or philanthropy. Equally important is integrating disciplined investment approaches that balance growth with resilience over time. The aim is not just to grow capital but to create confidence and flexibility, fostering sustained intergenerational wellbeing while safeguarding wealth across generations.
What should portfolio managers take away from these trends?
The key takeaway is that longevity is a structural force, not a cyclical one, as shown by the progression of longer life expectancies in tandem with declining number of working-age adults per elderly person. It therefore requires a fundamental shift in thinking how wealth is managed. Conventional short-term accumulation models no longer suffice when retirement can last decades. Succession planning must also be multigenerational, involving younger family members early on to ensure smooth continuity. Finally, the growing complexity of globalised family structures – from tax exposure to healthcare-driven relocation – creates both challenges and opportunities. Those advisors able to deliver sophisticated, holistic strategies will be best placed to support clients navigating this new landscape.
Biography
Dr. Damien Ng is a Senior Thematic Research Analyst at Julius Baer, focusing on "Future Health" themes such as longevity and healthcare. He holds a PhD from Durham University and has worked internationally with Goldman Sachs and Reuters. Damien is a published author who regularly gives speeches at Julius Baer, universities, and external events, drawing on his expertise in finance, healthcare, and technology.