According to Fortune, an aging population is already creating economic challenges in the United States and other countries.
At the same time, more people are being diagnosed with conditions such as dementia and Alzheimer's disease, placing a significant financial burden on society.
According to the University of Southern California, these diseases cost approximately $781 billion in 2025.
Previous studies have also shown that a smaller share of older adults in the workforce can contribute to slower economic growth.
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More people are retiring early
Many Americans choose to retire before the age of 65.
According to a 2025 analysis published in The Scandinavian Journal of Work, Environment & Health, a large proportion of the long-term unemployed are over the age of 55. At the same time, the average retirement age for men has declined over recent decades.
Fortune also reports that early retirement may result in lower retirement benefits, as many people choose to begin receiving Social Security benefits earlier than they are eligible to do so.
Cognitive abilities
A working paper from the National Bureau of Economic Research examined data from approximately 40,000 Americans between the ages of 51 and 75.
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The researchers used data from the University of Michigan's Health and Retirement Study and compared it with changes in labor market participation.
The study found that individuals who left the workforce faced a greater risk of experiencing a more rapid decline in their cognitive abilities.
By contrast, those who remained employed maintained their cognitive abilities better over time.
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