Reflections on Empowerment: The COVID-19 Pandemic Reinforces the Need for Solidarity and a Focus on our Life Priorities

This article is part of series in which OECD experts and thought leaders – from around the world and all parts of society – address the COVID-19 crisis, discussing and developing solutions now and for the future. It aims to foster the fruitful of exchange of expertise and perspectives across fields to help us rise to this critical challenge. Opinions expressed do not necessarily represent the views of the OECD.

The New Social Contract: Empowering individuals in a transitioning world, a global survey report published by Aegon in 2019, identifies people’s top four current life priorities as: being healthy and fit (62%), enjoying life (59%), planning for their financial future (49%), and focusing on family (45%). Since the end of last year, the entire world has been upended by COVID-19. The need for a social contract and solidarity among social partners has never been greater. Together with two of the co-authors on the report, Catherine Collinson, CEO and President of nonprofit Transamerica Institute in the United States, and Leandro Palmeira, Research Director at Instituto de Longevidade Mongeral Aegon in Brazil, I’d like to reflect on the survey’s findings amid the impact the COVID-19 crisis.

 

Mike: “I live in the Netherlands, where we have entered an ‘intelligent lockdown’ to slow the spread of the virus. This has meant that many companies are now under severe financial strain and struggling for their long-term survival. The knock-on effect is that many people have been laid off, others are worried about their future and the lucky among us are getting used to working at home.

Our survey results show that a third (32%) of people already say they feel stressed about their current financial situation at least once per week, and a quarter (24%) feel stressed about their long-term financial planning for retirement. Faced with additional worries about job security, people are going to feel more stress in the months to come. The self-employed and those without a fixed monthly income are especially vulnerable. At the best of times, it is difficult to balance spending on day-to-day expenses with saving for the future. If, like many people, you are currently in survival mode, the exercise of preparing a budget will help you understand what money will be coming in over the coming months so that you can prioritise your spending for now and in the future. Writing down your plan may not eliminate your stress but it will help you see what resources you have available so that you can take some action”.

Catherine: “In the United States, one of the most common ways for people to save for retirement is through employer-sponsored 401(K) plans. Through these plans, workers typically invest in a variety of funds that are susceptible to both positive and negative fluctuations in the financial markets. The COVID-19 crisis has resulted in extreme market volatility and steep declines in equity markets, which has translated to drops in retirement account balances.

Workers who are nearing retirement face many questions in light of any drops in the value of their savings: Should I work longer and delay retirement? How can I save and invest in such a way that can help ensure that my savings last for my lifetime? These are difficult questions to answer. Now that many of us are ‘sheltering at home’, it is a good time to talk with family members about financial matters and plans for the future. Given the complex nature of the financial markets, especially amid the COVID-19 crisis, it is also prudent to consult with a professional financial advisor, whether it be your employer’s retirement plan provider, a bank, brokerage firm or insurance company”.

Leandro“Brazil has a healthcare system that is public, free, and universally accessible, although inefficient due to management issues and budget constraints. COVID-19 is likely to put an even greater strain on it in the months to come. Almost two-thirds (65%) of Brazilians in our survey say that being healthy and fit is a current life priority and 50% say that declining physical health is a retirement concern. We know that life will not be the same after the pandemic and responsibilities will shift with many of us working longer than we may have planned. What are we doing to get through the next few weeks and months in order to stay healthy and active, and also look after our emotional health and well-being by staying connected with friends and family?

Under normal circumstances, I do my best to exercise most days and as a family, we are used to spending a lot of time enjoying the outdoors. At the moment, we are getting used to spending more time indoors and making up for exercising less by trying to focus on enhancing our existing healthy diet”. 


Our reflections illustrate how deeply and abruptly COVID-19 has changed the way we live our lives and will have an economic impact that will be felt for years to come. It has highlighted vulnerabilities in our current social contract and also brought out the best in people: from neighbours who look out for one another to healthcare workers who have shown enormous dedication and self-sacrifice to keep us safe and well.  

The economic impact of the government rescue programmes in many countries calls for a redistribution of resources. This will test the solidarity of our social contracts as more responsibility inevitably shifts to the individual to take care of themselves and their loved ones. The best way to ensure the solidarity in our system is to make sure that each of the social partners are empowered to shoulder the responsibilities placed upon them. Individuals, as one of the social partners, represent a vulnerable group – and that is why it is our mission to help people achieve a lifetime of financial security.  

Mike Mansfield is the Program Director for the Aegon Center for Longevity and Retirement, Aegon.

Source: OECD Forum Network

Latest Developments

We keep our members and partners in touch with the most recent updates and opinions in the worldwide dialogue on population longevity and related issues.

Brazil Must Fight Antibiotic Resistance

The threat posed by antimicrobial resistance is urgent and spares no country - including Brazil. According to The Lancet, 63 deaths per 100,000 are associated with AMR in Brazil and Paraguay, a rate that exceeds the average for Latin America and the Caribbean. AMR-associated deaths in Brazil are second only to cardiovascular diseases and cancers.

We Missed 100 Million Adult Vaccines – Here’s How We Get Back on Track

Like other pandemics throughout human history, COVID-19 has caused profound changes that are still rippling through our societies, even as people are understandably eager to move on. In fact, these impacts are all the more dangerous when they are largely ignored or effectively invisible. The decline in adult vaccination may be one of the most significant, as a new report finds that ~100 million doses were missed in 2021 and 2022 alone – reversing global progress towards widespread adult immunisation as a new standard of care in a world of more old than young.

New Analysis Shows Lost Ground on Adult Immunisation During the Pandemic with 100 Million Doses Potentially Missed

New data shared today by GSK, in collaboration with the IQVIA Institute for Human Data Science and the Global Coalition on Aging (GCOA), estimate approximately 100 million fewer doses of some adult vaccines (excluding Covid-19 vaccines) were administered in 2021 and 2022 than anticipated, based on the global vaccination adoption trends observed from 2013 to 2020, compounding already low adoption rates pre-pandemic.

Going Beyond Applause: The Potential of Caregiving to Unlock Job Opportunities of the Future

Early in the COVID-19 pandemic, the role of caregivers – staff and family who provide care for older and dependent people to carry out activities such as eating or moving - catapulted to the front of our collective conscience. The daily applause for front-line care workers showed a high level of recognition for their incredible work and provided insight into how our health systems must change as our society ages. We need to continue to recognise caregivers as essential to our ageing society.

High-Level Forum on the Silver Economy 2023

Join us for the High-Level Forum on the Silver Economy 2023. Now in its fourth year, the Silver Economy Forum 2023, December 6 and 7, will explore aging at every stage of life, looking at the growing global Silver Economy through a multigenerational lens. Linking to the goals and aspirations of the UN Decade of Healthy Ageing, SEF 2023 will highlight key themes at the intersection of aging at every age, and the Silver Economy.

Global Coalition on Aging Workshop Calls on G7 Countries to Fund Pull Incentives to Spur Antibiotic Innovation

The Global Coalition on Aging, in partnership with JPMA, today announced the release of its workshop report on the AMR crisis facing G7 countries and the world, “The Value of Pull Incentives in Japan to Encourage Investment in Antibiotic Innovation to Solve the AMR Crisis.” If strong action is not taken to address AMR, we will lose the antibiotics we need to cure infections, which is likely to outpace cancer as a major cause of death, killing an estimated 10 million by 2050.