At a glance: The longevity dividend in South Africa

• In 2018, 1 in 6 South Africans were aged 50 or over. By 2035, this could be more than 1 in 5.
• Across the G20, consumption by households led by those over 50 accounted for over 55% of all consumer spending. In South Africa, 49% of 50-64 year olds are still in employment (2018)
• If remunerated, the value of unpaid contributions by those aged 50 and over in South Africa, such as volunteering and caring, would account for over $600m.

We’ve become accustomed to ageing populations being presented as a bad thing. But far from being a cost or drain on public resources, older people’s social and economic impact is significant.

But it could be much higher if we remove avoidable barriers to working, spending, caring and volunteering, with the most important being poor health.

We know that countries that invest more in health see more people working, spending and volunteering and that investment in prevention drives a return. Spending just 0.1 percentage points more on preventative health can unlock an additional 9% in spending by older consumers and an average of 10 additional hours of volunteering across the G20.

In this report, we highlight the economic contributions of older people in South Africa today and across the G20. While South Africa has a relatively younger population than some other countries across the G20, it’s ageing fast. And it will be vital for the country to adapt to these changes to ensure these extra years are spent well to unlock the economic opportunities of ageing and support the post-COVID recovery.

To achieve this, we call on the Government of South Africa to adopt an Ageing Society New Deal that sees spend on prevention raised to 6% of health budgets, alongside greater support for older people’s paid and unpaid contributions.