The economic challenges of an ageing population: McKinsey join the debate.

McKinsey have just released a report which stresses the importance to the UK of taking radical action to address the challenges of an ageing population.

The report, ‘From Austerity to Prosperity: Seven Priorities for the Long Term in the United Kingdom’, was published on November 22nd. It states that there are good prospects for UK economic growth, provided that there is a step change in action on seven fronts, including innovation, productivity – and generational imbalances.

The report adds further weight to our own position, which is that population ageing is one of the most significant issues for business and society, and requires new thinking and new approaches as a matter of some urgency. With support from the consultancy described as a ‘breeding ground for gurus’ and ‘the world’s most prestigious consulting firm’, we feel we now have powerful allies!

The McKinsey report focuses on two challenges faced by major developed economies like the UK. The first of these is the issue of how to maintain growth in the face of a declining working population; the second is rising health care costs and the funding of long-term care (where demand is estimated to increase by 70% over the next 20 years). While pointing out that the UK is leading the way in Europe with regard to addressing the implications of changing demographic and retirement patterns, further progress is required, says the report.

McKinsey make recommendations in two main areas. First, ‘a radical increase in older working’ is required, which builds on the practices of innovative firms in this area. Second, they recommend that the £1 trillion of unmortgaged housing wealth must be unlocked, via improved policies, practices and products, to enable older people to fund their care and health needs.

The report states that it is ‘intended to challenge existing orthodoxies’, something we support fully. Marketing is – or should be – the leader of change in this area. Too often, however, it is constrained by short-term business thinking and outmoded ageist assumptions. There are some great case histories – but too many businesses fail to recognise and address this inescapable and unprecedented demographic trend.

Here’s three ways we can help you move forwards. As a starting point, our unique research report provides a comprehensive overview on most aspects of Marketing and the Ageing Population. Produced with the input of two University Professors, it draws upon more than 200 sources. To arrange a presentation, or to find out more, visit our website (www.rhcadvantage.co.uk) or contact me (mark (at) rhcadvantage.co.uk).

Secondly, why not book one of our ‘Age Advantage’ workshops? These are intended to kick-start the thinking of your team on how your organisation should address the issue of population ageing. And finally, perhaps you’d just like to have a mature conversation about a specific problem or project.

To move out of an economic downturn requires innovation – and re-aligning your business or brand against demographic change is a very good place to start.


You can contact me, Mark Beasley, at mark (at) rhcadvantage.co.uk

To find out more about rhc advantage, our research report and our marketing services, visit www.rhcadvantage.co.uk

To download the McKinsey report, visit www.mckinsey.com/mgi/publications