Expert Committee on Longevity Finance recommends setting up of Longevity Hub at GIFT-IFSC

What is the News?

International Finance Services Centers Authority(IFSCA) had constituted an Expert Committee on Longevity Finance. It was co-chaired by Ms. Kaku Nakhate and Mr. Gopalan Srinivasan. The committee has now submitted its final report to IFSCA.

What is Longevity?

Longevity has no set definition and means different things for different people. To some, it means a long life while for others, the term is more philosophical. 

Today, older people account for one-fifth of the population in 17 countries. It is projected that by the year 2100, older people will account for one-fifth of the total population in 155 countries, comprising 61% of the world population. 

In the Indian context, senior citizens(60 years and above) account for approximately 8.2% of the population. 

Why was the Committee on Longevity Finance setup?

Global estimates suggest that there are one billion people in the silver generation (a global cohort of individuals aged 60 and older) with a combined spending power of $15 trillion and the size is ever-expanding.

Development in medicinal science and technology will support extending the lifespan and longevity of the silver generation. 

It is estimated that by 2040, there will be more members of the silver generation than people under 20. This demographic change will throw open new challenges and opportunities, especially in the areas of wealth management, health, insurance, and other investment products.

This has prompted the IFSCA to set up an expert committee.

What are the committee’s views on Longevity Finance?

The committee has recommended the setting up of the first Global Longevity Hub(GLH) in the GIFT-IFSC.

The hub should focus on developing the longevity economy by offering various longevity finance solutions in coordination with leading corporates and financial institutions such as Banks, Pension Funds, Asset Management Funds, Insurance Companies etc.

Benefits: The long-term vision of building a longevity finance hub at IFSC can open-up opportunities in wealth management, insurance, pension, silver entrepreneurship and medical tourism. This will also help GIFT IFSC emerge as a global leader in longevity finance.

Source: This post is based on the article “Expert Committee on Longevity Finance recommends setting up of Longevity Hub at GIFT-IFSC” published in PIB on 13th April 2022.