The global workforce is undergoing a significant transformation, with ageing populations becoming a central concern for businesses worldwide. Projections indicate that by 2050, one in six people globally will be over the age of 65, a demographic shift that presents both challenges and opportunities for enterprises. To maintain growth and competitiveness, businesses must adapt their strategies to accommodate this changing landscape.
This article explores how INAA’s members — comprising accountants and financial advisors — can assist entrepreneurs in navigating these demographic shifts through effective succession planning, workforce strategy, and financial resilience.
Understanding the Impact of an Ageing Workforce
The ageing workforce is not a distant concern; it is a current reality affecting various sectors. In the UK, for instance, the construction industry faces significant challenges due to a shortage of skilled workers, many of whom are nearing retirement age. This shortage is compounded by factors such as Brexit and the COVID-19 pandemic, which have disrupted the flow of younger workers into the industry. The British government’s plan to build 1.5 million homes by 2029 is under threat due to these labour shortages, highlighting the urgency of addressing the ageing workforce issue.
Similarly, in China, the government has taken steps to address its ageing population by raising the retirement age. From January 2025, the retirement age for men increased from 60 to 63, and for women in white-collar jobs from 55 to 58. This policy aims to mitigate the economic challenges posed by a shrinking workforce and to ensure the sustainability of the pension system.
Succession Planning: Preparing for Leadership Transitions
Effective succession planning is crucial for business continuity, especially as a significant portion of the workforce approaches retirement. In the UK retail sector in particular, concerns have been raised about the lack of clear succession plans for long-serving CEOs. For example, Next CEO Simon Wolfson’s tenure has been marked by significant growth, but investors are increasingly anxious about the absence of a publicly disclosed succession strategy.
INAA’s members can play a pivotal role in assisting businesses with succession planning by:
- Identifying potential internal and external candidates for leadership roles.
- Developing structured transition plans to ensure knowledge transfer.
- Advising on governance structures that support long-term stability.
By proactively addressing succession, businesses can mitigate risks associated with leadership vacuums and maintain operational continuity.
Workforce Strategy: Adapting to Demographic Changes
The growing presence of an ageing workforce necessitates a thoughtful and proactive workforce strategy. According to the International Monetary Fund (IMF), implementing appropriate policies such as promoting healthier ageing and extending careers can empower older workers, enabling them to continue contributing positively to productivity and the broader economy.
Businesses looking to embrace this demographic shift can benefit significantly from the support of experienced financial and accounting advisors. By facilitating flexible working arrangements, companies can effectively cater to older employees, enabling them to contribute meaningfully and remain engaged for longer. Moreover, investing in continuous learning and tailored professional development programmes allows businesses to consistently upskill their workforce, ensuring productivity remains high across all age brackets.
Financial Resilience: Ensuring Long-Term Sustainability
Addressing demographic shifts goes beyond strategic workforce planning — it also requires careful attention to financial resilience. The ageing population inevitably impacts business finances through increasing healthcare costs, higher pension obligations, and potential shifts in workforce productivity patterns.
Through comprehensive financial assessments, businesses can identify and anticipate the economic risks associated with an ageing workforce. By analysing existing liabilities, accountants can help formulate strategies to manage pension obligations more effectively, ensuring that financial stability is maintained despite demographic pressures.
Advisors also provide crucial assistance in creating sophisticated financial forecasts and scenario analyses. These tools help businesses understand future costs and obligations, enabling more informed decision-making and robust contingency planning. Additionally, by developing investment strategies aligned with the realities of an ageing workforce, businesses can better position themselves to weather demographic challenges without compromising their growth ambitions.
Embrace Change with INAA
Demographic changes related to an ageing workforce undeniably present unique challenges for businesses. However, with proactive succession planning, adaptive workforce strategies, and careful financial resilience measures, organisations can not only navigate but also capitalise on these shifts.
Partnering with experienced professionals like INAA’s members offers distinct advantages. With their specialised financial and accounting expertise, INAA’s members guide businesses through succession complexities, workforce transitions, and financial planning. Leveraging this expert advice enables companies to confidently face demographic transformations, positioning themselves for sustained long-term growth and stability.
Engaging with INAA provides businesses access to a wealth of knowledge, ensuring they are well-equipped to help their clients thrive amid ongoing demographic shifts.