The biggest domestic issue of the 21st century

The U.S. — along with most other nations — is getting older, creating an opportunity for the life insurance industry to explore innovative ways to serve an aging population.

Long-time industry observer Joe Jordan believes life insurance and financial services must pay attention to the nation’s changing demographics to serve a population in which older generations outnumber younger ones. It’s a topic he discusses in one of the many speeches he gives to industry groups across the U.S.

“I’ve been in this business for 50 years, and I like to quote Marcus Aurelius — ‘Look to the essence of a thing,’” Jordan told InsuranceNewsNet. “What’s the thing that’s really driving change?”

Jordan listed three factors he believes are driving retirement planning today.

He said the first is regulation, or what he described as “everything you have absolutely no control over and can’t do anything about.”

“It’s the price of food, gasoline, rent and all that other stuff, as well as who gets elected — all things that you have no control over, so you have to deal with it.”

Technology — especially the rise of artificial intelligence in daily life — is another factor. “Everyone’s obsessed right now with technology and how it’s going to change the world,” Jordan said.

But the third factor — and the one Jordan said receives the least amount of attention — is demographics.

“Technology changes how things are done, but what drives how things get done is the demand that comes from the people — the demographics,” he said.

What the Census Bureau says

The U.S. Census Bureau reported in 2025 that older adults outnumber children in 11 states. In addition, the Census projects that by the mid‑2030s, older adults will outnumber children nationally for the first time in U.S. history.

Meanwhile, the working‑age population continues to grow, but much more slowly than the 65-and-over age cohort. From 2020 to 2024, the working‑age population, ages 18-64, grew only 1.4%, compared with 13% growth among those 65 and older.

But lower birth rates mean the child population continues to shrink. Between 2020 and 2024, the number of children under 18 in the U.S. declined by 1.7% nationally. Children represented 25% of the population in 2004 but only 21.5% in 2024. Census data show fewer children in the birth to 11 age range than in older child cohorts, confirming a sustained fertility decline. Projections indicate the child population will continue to decrease at least through the mid-2030s.

“We have never experienced a time when we have more older people taking money out of Social Security than we have younger people working and putting money into it,” Jordan said. “That discrepancy is going to continue, and it’s irreversible. There’s not much you can do about it. It has completely changed planning.”

A unique opportunity

Jordan said he believes this demographic shift is good news for the industry.

“I think it’s great for our business, because people must understand that they will be responsible for their longer and more expensive retirement. So I think that’s a great, unique opportunity for our industry. If you’re a young person looking for a job and you’re afraid to pick a profession because you think artificial intelligence will take it away, I don’t think that will happen here.”

Technology has taken over many aspects of financial services, but one thing that tech can’t replace is the ability to have meaningful discussions with consumers who are making one of the biggest decisions of their lives — how to plan for a lengthy post-employment life.

“When people have to make financial decisions and the penalty for being wrong is high, they want to talk to a person to sort it out,” Jordan said. “As people age, they want to talk to someone — and that’s us. I think there will be a huge demand to help people figure out how to fund their own more expensive and longer retirement. So I think that will be good for us.”

What’s the future for Social Security?

Not only will changing demographics influence retirement, but projected changes to Social Security could potentially upend retirement completely. 

The Congressional Budget Office announced in February that the Social Security trust fund would be depleted in 2032 unless Congress acts. This would trigger reduced payments to beneficiaries starting that year. Some CBO scenarios show cuts in Social Security benefits approaching 25% or more over time.

“That’s radical and dramatic,” Jordan said. “And why is that happening? It’s the simple fact that there aren’t enough babies being born; we’re not replacing the population. I think that’s the biggest domestic issue the U.S. will face in the first half of the 21st century, and it will be a huge wake-up call for a lot of people.”

But planning for a retirement that could include a reduction in Social Security payments “puts a great spotlight on our business,” he added.

“The types of products that we sell — annuities that pay guaranteed lifetime benefits, life insurance policies with living benefits — it’s recognizing the fact that people are getting older.”

A shift in approach

As the industry shifts its product lineup to adapt to an aging world, Jordan said advisors also must shift their approach to retirement planning. 

He quoted a 2020 report by McKinsey & Co., “Predicting What Wealth Management Will Look Like in North America,” that said, “In the next 10 years, advisors will gradually shed their role as investment managers and become more like integrated life/wealth coaches.”

“This is something AI absolutely could never do,” he said. “There will be a whole new demand coming from the demographics of people who are aging, and they’re going to look for something other than the old rules of what retirement would be like — sitting around smoking cigars, fishing and all that other stuff — into something meaningful and worthwhile.”

A TRIO educates advisors

Jordan has joined forces with two other industry experts to speak together at industry events as a team they call TRIO, The Retirement Income Optimizers. In addition to Jordan, they include George Bain, vice president of reverse lending initiatives at Fairway Independent Mortgage Corp., and Ted Rosedale, chief operating officer at the National Association of Registered Social Security Analysts.

Rosedale’s organization, NARSSA, is a professional education, technology and advocacy organization focused on advancing Social Security literacy and informed decision-making. As the governing
body behind the Registered Social Security Analyst designation, NARSSA equips financial, insurance, tax, legal, benefits and other professionals with the education, tools and professional standards needed to help individuals navigate Social Security. 

Rosedale speaks on the importance of advisors earning the RSSA designation and why Social Security literacy is needed to help clients prepare for retirement.

Bain discusses what advisors must know about reverse mortgages as a tool to generate retirement income. He also discusses the Certified Home Equity Advisor, a professional designation developed by the National Association of Insurance and Financial Advisors in partnership with Fairway Independent Mortgage Corp. It is designed for insurance and financial professionals who work with older clients and want formal training on the ways home equity — including reverse mortgages — can be integrated responsibly into retirement planning. 

Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].