To put things in perspective, as much as two-thirds of the average income loss due to the absence of adjustment to aging – the 20 per cent figure I mentioned earlier – could be regained if productivity grew at a rate close to its average over the past 50 years, instead of at the anaemic rate experienced over the past decade.
But investing more, to increase capital or to boost productivity, will require other adjustments as well. More resources will need to be put aside to finance these investments. As individuals and families understand the challenges of aging, they may realize how much more savings they will need to maintain their standard of living throughout retirement.