The "Silver Dividend" Strategy: Turning Longevity into Growth

To build on our discussion of the white paper by Surya Kolluri, Olivia S. Mitchell, and Nikolai Roussanov (see the blog post "Navigating the Longevity Revolution"), here is a detailed breakdown of the "Silver Dividend" strategy and a summary of the specific policy recommendations for employers.

The "Silver Dividend" Strategy: Turning Longevity into Growth

As global populations age, there is a risk of lower economic growth due to a shrinking workforce and lower capital accumulation. However, authors Donghyun Park and Kwanho Shin argue that nations can instead realize a "Silver Dividend”.

Core Concept

The Silver Dividend is the potential for productivity to be boosted by improved longevity, which allows older individuals to remain in the workforce longer. This mitigates the traditional negative impacts of aging on a country's economic expansion.

Key Drivers for Success

According to the research, three primary factors help generate this dividend:

• Life Expectancy: Longer lifespans provide a natural extension of potential working years.

• Human Capital: High levels of expertise and education increase the "opportunity cost" of retiring early.

• Trade Openness: Greater global integration leads to higher overall labor force participation.

Implementation Focus

To achieve these benefits, the paper emphasizes prioritizing:

• Total Factor Productivity: Focusing on innovation and digital transformation.

• Health Capacity: Implementing programs that specifically improve the health and work capacity of older individuals.

• Lifelong Learning: Encouraging continuous re-skilling to keep older workers competitive.

Policy Recommendations for Employers

The research outlines several actionable strategies for employers to improve both the productivity and the financial resilience of their aging workforce.

1. Modernizing Retirement Plan Design

• Default Annuities: Employers should consider adopting "deferred annuities" as a default payout product for Defined Contribution (DC) plans.

• Longevity Protection: Defaulting a portion of plan assets into an immediate annuity can enhance security by providing "survival credits"—extra returns from pooled assets.

• Utilizing QLACs: Recent legislation has made it easier for employers to offer Qualified Life Annuity Contracts (QLACs) to help employees avoid running out of money.

2. Navigating the AI Transition

• Targeted Training: Firms should develop training programs specifically designed to ensure older workers can adapt to an AI-driven economy^.

• Lifelong Learning Opportunities: Employers are encouraged to provide consistent opportunities for workers to update their skills and knowledge throughout their careers.

• Role Alignment: Older, college-educated workers are often already in roles that are complementary to AI; employers should leverage this by offering roles with more autonomy and less physical demand.

3. Fostering Health and Engagement

• Healthspan Programs: Implementing workplace initiatives centered on nutrition, exercise, sleep, and stress management to extend the number of years workers remain healthy.

• Engagement Models: Shifting the idea of retirement from a complete exit to a model of continued engagement through cognitively stimulating activities or volunteer work.

• Nutritional Support: Promoting healthy food choices within the workplace through appropriate labeling and access.

Overcoming Institutional Barriers

Despite these pathways, the authors note that employers often hesitate to invest in employee health because they fear the return on investment may not be realized prior to the employee's retirement. Overcoming this hesitation and addressing widespread financial illiteracy are critical steps to fully reaping the Silver Dividend.

Source:

 Insights Into the Future of Healthy Aging and Successful Retirement: An Overview Surya Kolluri, Olivia S. Mitchell, and Nikolai Roussanov October 28, 2025

Disclaimer

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors and Synergy Wealth Management are separate entities.