Portugal has seen significant gains in life expectancy in recent decades, with people today living, on average, five years longer than they did 20 years ago. By 2040, half of Portugal’s population will be aged 50 and over, and almost one in three will be aged 65 and over.

This increase in longevity brings many challenges: the decline in the working-age population is putting pressure on pension finances, and the demand for government spending in areas such as health and care is growing. But it also brings opportunities – for individuals, businesses, the government, and society.

Longer lives mean people can contribute for longer: through paid work, by providing informal care, looking after grandchildren, or volunteering. Older people are accounting for an increasing share of the consumer market, opening new opportunities for businesses. And the potential for nurturing multigenerational workplaces is creating new opportunities for learning and development, boosting skills and productivity, and strengthening the ties between generations.

But people are also working for longer.  Employment rates for people aged 50 to 64 have increased 11% in the last twenty years, and 7 out of 10 adults in this age group are currently in work – this is above both the EU and OECD average. And one in five people aged 65 to 69 are either in work or looking for work – almost twice the EU average.

The ILC’s Health equals wealth: Maximising the longevity dividend in Portugal report, published with the support of the British Embassy in Lisbon, highlights how older people are increasingly working, earning, and supporting a growing share of the economy in Portugal:

• Almost a quarter of people providing regular informal care are aged 65 and over, and Portugal has one of the highest rates of co-residential caregivers aged 50 and over in Europe
• People aged 65 and over spend an average of 18 hours per week caring for grandchildren – the third highest level in Europe – and people aged 65+ spent nearly 54.7 million hours volunteering in 2018
• Older consumers account for an increasing share of the consumer market: 35 cents out of every EUR was spent by someone aged 60 or over in 2015, up from 29 cents in 2010.

Although life expectancy in Portugal has been increasing, for too many people these additional years are spent in poor health. Drawing on two roundtable discussions with experts in Portugal and ILC’s own research and analysis, the report identifies six areas for action to maximise the opportunities of Portugal’s ageing population i.e. the “longevity dividend”:

• Investing in health and prevention
• Providing funding and support for innovation
• Investing in skills for care
• Government leadership and public policy
• Supporting flexible work and skills development
• Developing age-friendly communities

The Portuguese Government has already taken important steps towards these goals, namely through the recently approved National Action Plan for Active and Healthy Ageing 2023-2026 – a cornerstone for the healthy ageing agenda in Portugal – and the setting up of the Centre for Skills for Active Ageing (CCEA) in 2023.