Longevity Planning

With scientific progress, increased life expectancy and enhanced quality of life, the legal needs of both organisations and individuals have evolved profoundly.

In the sphere of corporate governance, there arises an opportunity to maximise the contribution of senior executives by engaging them in new projects and capitalising on the experience accumulated over decades, without undermining the natural process of internal renewal.

In the employment sphere, a wide range of issues must be addressed — from the redesign of roles and responsibilities to the creation of distinct models of professional training, engagement and incentives, adapted to different age groups and stages of professional development.

It is also important to raise awareness among decision-making bodies of the potential impact that certain strategic or operational decisions may have in relation to the increasingly topical matter of age-related inequality, and to assess the extent to which differential treatment on the basis of age is legally permissible or socially desirable within the existing legal framework.

Consideration must equally be given to new forms of engagement and workforce adjustment which may prove appropriate in these circumstances, together with the training of those directly responsible for human resources — whether in recruitment, day-to-day management or termination of employment.

The continuing imbalance of the demographic pyramid and its consequent impact on the financing of social security systems must also be borne in mind, with a view to structuring alternative and sustainable solutions.

From a financial standpoint, products specifically designed for longevity — such as retirement savings plans, pension funds and insurance products based on biometric data — are becoming increasingly significant. It is imperative to encourage saving and investment decisions (and, in the case of data-driven or usage-based insurance, to foster conditions that may even promote healthier lifestyles), thereby ensuring sustainable financial planning throughout life.

In this context, taxation plays a central role. Effective longevity planning requires a comprehensive understanding of the tax impact of investment, savings, and succession decisions, ensuring that income earned over a lifetime is timely and properly optimized while being protected from excessive taxation. Defining balanced tax strategies not only helps maximize the net benefits of accumulated savings but also seeks to ensure financial predictability and stability in later stages of life.

Companies also face significant tax challenges when designing compensation policies, partial retirement incentives, pension plans, or senior talent retention and incentive programs. Careful tax analysis enables the alignment of organizational sustainability objectives with tax efficiency.

Longevity likewise calls for careful succession planning, particularly within the context of family offices and family-owned businesses, where it is essential to align family and corporate structures — notably through family protocols — and to prepare intergenerational transitions in a timely manner. The tax framework for asset transfers, donations, and corporate reorganizations is crucial to preserve the value created and ensure the continuity of business and family structures.

Support solutions for elderly family members are assuming greater importance. This is illustrated by the regime of the legally protected adult, which plays a central role in the legal protection of elderly or otherwise vulnerable persons. Opportunities for real estate transactions under attractive financial conditions are also increasing.

Recognising the importance of an integrated approach to these matters, SÉRVULO has launched its new Longevity Planning advisory service for both corporate and private clients. Longevity is not merely about living longer, but about living with better health, quality and personal and professional fulfilment. It is therefore essential to make available a dedicated team offering specialised expertise in these matters, equipped to meet today’s challenges.