From Underdogs to Game Changers: Investing in the Future of Aging

By: Peter Kaldes, Presidente y CEO, Next50

March Madness is all about unpredictability—Cinderella teams upsetting powerhouses, last-second shots, and busted brackets. For those of us on Team Aging – nonprofits, foundations, state and local governments, and academic institutions – that same unpredictability defines our reality, but instead of an underdog’s thrilling victory, today we’re facing a volatile system that seems woefully unprepared for the demographic shifts coming our way.

Our current approach to aging is like a team ignoring its opponent’s size advantage—failing to adjust strategy in real-time. We continue to treat aging as a niche issue rather than the central force it is. The roster of Americans over 65 is growing at a rate the country has never seen, yet our policies are still designed for an era when retirement was short and older adults were a smaller share of the population. Americans are living an average of 15 years longer than we were when we first adopted the current system. We need a new playbook, one that acknowledges longevity, and the investments needed to meet the changing needs of aging.

We could be having reasonable debates about how to reduce the $7 trillion federal budget. Instead, some are rushing to do so at the expense of not just the most vulnerable, but to all of us – including our future selves. Nearly 40% of the federal budget is tied to aging—think Social Security, Medicare, Medicaid and other critical federal investments. These impact all of us – not just today’s older adults and the hard-working organizations that serve them. In fact, for many, the federal government is the only source of income and funding. It’s already expensive to age in this country. Why make it worse?

As we wait for policymakers to recognize the need for a full-scale adjustment, small moves—like Next50’s announcement that it will align its entire endowment with aging—can shift the game. Aging is often seen as either a personal responsibility or a public-sector issue, leaving a critical gap: the untapped potential of capital markets to drive innovation and impact how we age. Next50 is creating a first of its kind gameplan- an aging investment framework – to show how investors and other foundations can create a world that values aging. Just as a well-timed three pointer can change momentum, investing in housing, technology and the care economy will ensure greater financial resources serve aging-related causes.

While some may strive to be MVPs, philanthropy creates the greatest impact when we focus on making meaningful assists. That’s why, in these uncertain times, Next50 is actively listening to our communities, investing in nonprofits that embrace collaboration, strengthening organizations to enhance their resilience, and helping us all adapt for even greater impact. March Madness reminds us that sometimes, upsets happen because a team plays with heart, strategy, and a willingness to adapt. The same goes for aging. If we want to avoid getting knocked out early in the demographic tournament, Team Aging needs to rethink how we invest, legislate, and plan the future. Otherwise, we’re just running out the shot clock, hoping for a miracle that won’t come.