The investment sector has long regarded its workforce as its most valuable resource. With rising life expectancy and extended professional careers, this dynamic is undergoing significant transformation. Research from Stanford indicates that in various countries, including the United States, living to 100 years is becoming increasingly common, leading to an anticipated career span of around 60 years. This change prompts a reevaluation of traditional work boundaries and expectations.
As investment firms navigate this shift in longevity, they must adapt to the new realities of career progression.
The conversation surrounding aging often centers on evolving client expectations, such as wealth transfer and retirement funds. However, the more profound challenge may lie within organizations themselves—managing a diverse workforce that spans up to five generations, fostering continuous learning, and enhancing well-being over increasingly non-linear career trajectories.
Table of Contents:
Understanding intergenerational dynamics
At the heart of any investment firm’s value is its human capital, shaped by a spectrum of generational perspectives—from Traditionalists to Generation Z. This diversity can sometimes lead to conflicts. For instance, younger analysts may feel overlooked by senior colleagues who adhere to more traditional values. Mid-career portfolio managers might find themselves balancing the expectations of both junior and senior staff, while Chief Investment Officers (CIOs) face the task of uniting these multigenerational teams toward common objectives despite their differing work styles.
Addressing generational conflicts
According to AARP, a vast majority of executives in OECD countries view multigenerational workforces as crucial for long-term success. However, simply managing conflicts reactively is not a sustainable approach. To thrive in this evolving landscape, firms should consider adopting proactive strategies that foster collaboration among different age groups.
The OECD predicts that to counterbalance declining birth rates and maintain living standards, many nations will require individuals to work past the conventional retirement age of 60 or 65. This trend is echoed in findings from CFA Institute, where a notable 10% of members surveyed are aged 61 and above, suggesting a significant shift in workforce demographics.
Adapting to longer careers
The implications of prolonged careers differ across various investment roles. For younger analysts, the preference may lean towards a flexible approach, prioritizing a broad base of knowledge over immediate specialization in a specific sector. This often results in frequent job changes, a trend increasingly common among early-career professionals who typically remain in positions for less than two years.
Mid-career portfolio managers are likely to find themselves continuously updating their skills to meet changing client demands. Meanwhile, CIOs will need to implement long-term strategies that encompass succession planning, knowledge retention, and adaptable role structures to maintain team stability as career lengths extend.
Shifting client demographics
The aging population will also alter client relationships, as more individuals seek to balance income generation with capital appreciation later in life. This shift diverges from traditional investment strategies that emphasize income drawdown. Additionally, it is essential to recognize that women, who generally outlive men, are set to inherit substantial wealth—nearly $40 trillion in the U.S. alone from deceased spouses. Investment professionals, regardless of their career stage, must adapt both their soft and technical skills to nurture long-term relationships with clients, many of whom will likely be women.
Health considerations and workplace expectations
Health is a pivotal aspect of the longevity discourse. As investment trends evolve, so too do the expectations that professionals have of their employers. The high-pressure nature of the investment sector has historically affected individuals at all career stages, but with longer careers, these high demands may extend further into later life. Additionally, professionals working longer are more susceptible to age-related health issues, which can incur costs for employers.
Holistic health support
With the concept of successful aging gaining traction, there is an increasing call for investment firms to broaden their health coverage. This includes not only physical health but also mental well-being and social connections, acknowledging the comprehensive nature of support that employees require as they navigate extended careers.
As investment firms navigate this shift in longevity, they must adapt to the new realities of career progression. The conversation surrounding aging often centers on evolving client expectations, such as wealth transfer and retirement funds. However, the more profound challenge may lie within organizations themselves—managing a diverse workforce that spans up to five generations, fostering continuous learning, and enhancing well-being over increasingly non-linear career trajectories.0
As investment firms navigate this shift in longevity, they must adapt to the new realities of career progression. The conversation surrounding aging often centers on evolving client expectations, such as wealth transfer and retirement funds. However, the more profound challenge may lie within organizations themselves—managing a diverse workforce that spans up to five generations, fostering continuous learning, and enhancing well-being over increasingly non-linear career trajectories.1
As investment firms navigate this shift in longevity, they must adapt to the new realities of career progression. The conversation surrounding aging often centers on evolving client expectations, such as wealth transfer and retirement funds. However, the more profound challenge may lie within organizations themselves—managing a diverse workforce that spans up to five generations, fostering continuous learning, and enhancing well-being over increasingly non-linear career trajectories.2
