Emerging markets such as China and India will age before they become rich

Emerging markets such as China and India will age before they become rich – Mail Bonus

Emerging market countries such as China and India, before they start celebrating stable fertility, have to deal with the aging of people who do not have enough savings to deal with old age.

Employers who offer on-the-job childcare, fertility and family benefits will also prosper. Diversity and participation in the workplace will be driven by Gen Z, the most diverse generation to date – 22% of this generation has at least one immigrant parent. The gender pay gap, which widens before Covid, if closed, could open up economic benefits and boost GDP by billions of dollars. A concert economy is a disruptive innovation but not a magical solution in the labor market.

These are some of the results of a demographic study conducted by the Bank of America’s international research team.

Getting older

New markets age before they become rich. European Championships are where aging occurs fastest. By 2050, almost 80% of the world’s population aged 65 and over will be at home in the European Championships, of which more than 23% will be due to China alone. However, only about 30% of emerging market workers are covered by any pension scheme. EMs face a shortage of $ 106tr pension savings as their population ages, 3x GDP.

Each employee has a savings margin of $ 40,000 in pension failure. Pension financing is even more difficult for these countries as they lack a developed welfare system, a generous state pension and strong personalities. The structural development of a smaller labor force, lower interest rates and a deteriorating fiscal balance threaten the pension system. The retirement savings range underlines the need for private financing with insurance coverage.

The future of work

The future of work includes childcare in the workplace, fertility and family benefits. Employers who support access to cost-effective and quality childcare will thrive as it ensures that children have access to youth education and that special challenges faced by parents are addressed.

Fertility-related benefits, such as in vitro fertilization and surrogacy, are becoming increasingly common in employee benefits. In the United States, between 2019 and 2020, employers who added family-building benefits increased by 500%, with some employers offering up to $ 200,000 to cover the cost of family-building. Independent providers of fertility benefits for employers would benefit from the rapidly growing fertility market.


Several aspects of diversity, equality and differentiation (DEI) already affect the world economy, related to race, gender, disability and more. Cultural and institutional bottlenecks and gaps exist within these social groups. Opening them up could bring significant economic benefits and reduce some of the challenges associated with aging and reducing the workforce.

It will take 267 years to achieve gender equality in education and employment from 2021, but flexible working methods, support recruitment laws can help.


The cost of failing to address these shortcomings is already high. Gender and racial prejudice lead to

inequalities in the labor market and limiting the economy. Poor DEI has cost $ 70tn since 1990: closing the gender and race gap would have yielded $ 2.6tn more in GDP in 2019 and the cumulative profit since 1990 would have been around $ 70tn.

Although self-employment or the concert economy is here to stay, it is not the solution to the labor market problem.

The gigantic economy is disrupting the traditional world of work. But labor force participation is expected to change, as some go hybrid or even stop working. There will also be a structural change in participation, from a 9-to-5 routine to an independent model (“concert”), and COVID has helped to accelerate this development. It is estimated that 162 million people, or 20-30% of the working age population in the United States and the EU, are self-employed.

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