@generali investments
With rising life expectancies, individuals and institutions face the critical challenge of ensuring financial security over extended retirement periods. Generali Investments – the asset management arm of the Generali Group – explains how they are leveraging a variety of innovative investment approaches to address the complex issue of longevity risk.
The world is entering what is being called the "Age of Ageing," marked by a surge in life expectancy and a rapidly expanding elderly population. By 2050, the number of people aged 65 and over will double to 1.6 billion, with 1 in 6 over 65 and nearly 450 million over 80. At the same time, fertility rates are declining below replacement levels across much of the world, leading to a shrinking working-age population.
This presents urgent challenges for financial systems, healthcare infrastructures, and retirement planning, particularly around the management of longevity risk – which is the possibility that individuals will outlive their financial resources. Asset managers and insurers are therefore under growing pressure to adapt and respond.
At Generali Investments, we recognise the profound implications of increasing life expectancy. We seek to tackle these challenges through a holistic and innovative approach that integrates diverse investment capabilities with tailored protection strategies, ensuring that clients benefit from both enhanced returns and effective risk mitigation.
Our strategy integrates private asset investments into life-cycle funds, democratises access to private markets for retail clients, develops thematic funds targeting the longevity economy, and offers tailored annuities and pension solutions. We further strengthen our approach with advanced risk mitigation tools, including longevity swaps and dynamic asset allocation. Together, these initiatives aim to deliver sustainable income, enhance portfolio resilience, and capitalise on the opportunities presented by a longer-living world.
