Out With The New, In With The Old: The Ageing Population as a Driver for Change5 February
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Andy LaneInstinctif Partners
CORPORATE PARTNERS:
The Financial Services Forum
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@TheFSForum - @InstinctifPtnrs
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OUT WITH THE NEW,
IN WITH THE OLD
THE AGEING POPULATION AS A DRIVER FOR
CHANGE
ANDY LANE, PARTNER, FINANCIAL SERVICES
BACKGROUNDMILLENNIAL MYTHS DEBUNKED
Millennials only think about the financial here and now
Millennials don’t care about saving
Millennials are all the same
Millennials prefer new entrants to high-street financial brands
Millennials don’t value face-to-face interaction with providers
Millennials are not interested in learning about their finances
Millennials are happy to engage in risky financial behaviour
Millennials are heavily influenced by celebrity financial success
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Most likely
to say the impact of the financial crisis
has made them less trusting of FS companies
More than half (54%) felt this way
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Most likely
to say the impact of the financial crisis
has made them feel FS companies put profits first
Two in five (43%) felt this way
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Most likely
to feel a lack of brand loyalty towards their
bank/building society or insurer
One in five (20%) felt they are ‘not loyal’ to their bank or building society
One in two (51%) felt the same about their insurance company
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
More confident
about buying a house, changing mortgage provider
or completing a tax return
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Barely any more confident
about saving for retirement, choosing pension funds
or exploring traditional or alternative investments
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Most likely
to feel the communications they receive from FS firms
are easy to understand and use relatable language
40% felt the communications they receive are easy to understand and don’t use jargon
29% felt the communications they receive use language they can relate to
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Least likely
to feel the communications they receive from FS firms
make them trust financial services companies
Only 7% felt this way
THE AGEING POPULATIONWON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Least likely
to feel the communications they receive from FS firms
make them confident in their financial decisions
Only 11% felt this way
HIGH STAKES – AND RISING
FASTEST GROWING SEGMENT OF THE POPULATION1
OLDER CONSUMERS HOLD THE MAJORITY SHARE OF WEALTH2
ONE IN FOUR OF THE UK POPULATION WILL BE AGED 65+ BY 20503
Is the financial services sector improving with age?
“When I ask for a
mortgage, for example,
they say it’s impossible.”
DAILY EXPRESS
Loyal older motorists face 8% insurance hike
Drivers who are in their 50s and 60s are more likely to lose money on their car
insurance, as they are less likely to shop around and find the best deal on the
market.
People in this age bracket in fact face price hikes of 8% compared to the average
2% that younger age groups have experienced in the last three months.
MONEY OBSERVER
Banks boost profits on back of over-60s’ cash
High street lenders are raking in profits from their older customers who leave
substantial sums in current accounts that pay low interest.
Banks are able to profit from savings held in accounts as they are able to use the
money to fund loans and mortgages, which they can then charge higher rates on –
known as the funding benefit.
The regulator found that, on average, customers aged 61 are the most lucrative for
the banks, holding on average £33,000 in their current account and £17,000 in
their savings account.
THE INDEPENDENT
Santander UK to close 140 branches
Closures have been most prevalent in small towns, forcing customers, particularly
the elderly who are less engaged in digital banking, to travel long distances to
banking services.
Despite the prevalence on online banking, the news of further closures will come
as a blow to the large number of people and small businesses who still rely on
traditional banking.
FT ADVISER
FCA warns of misleading ads for over-50s life cover
The regulator has warned it is aware of life policy promotions for the over-50s which
misled consumers into thinking they were buying a policy which will cover funeral
costs in their entirety.
Its financial promotions team had seen evidence of such adverts and cautioned if a
firm referred to "funerals and associated costs" it was important consumers were not
misled into believing they were purchasing a plan which covers the costs in full.
THE GUARDIAN
Pension scams: some victims lose more than £1m
New figures reveal a surge in criminal activity targeting the savings of over-55s.
While the average amount swindled out of pension scam victims was £91,000,
some people had lost seven-figure retirement nest eggs, said police and
regulators.
Victims of such scams – which typically begin with an unsolicited phone call or
email – can end up losing their life savings and people have been urged to be on
their guard. A TV advertising campaign to warn the public was launched in August
2018 and a ban on pensions cold-calling came into force this month.
DAILY EXPRESS
Dipping into pension pots ‘a toxic trend’
More than a million people have plundered their pension pots since new freedoms
were introduced four years ago, figures show.
They have taken out a total of £23billion since 2015 as the over-55s increasingly
turn to their retirement savings to top up their income.
The number of people who dipped into their pots grew by a third over the last three
months as 264,000 adults withdrew £1.9billion from their pensions.
Communications considerations
Insight &
Research
FCA Financial Lives Survey 2017, June 2018
Insight &
ResearchFour key areas where older consumers typically differ
to other consumer groups:
• financial needs and circumstances
• capability and preferences
• likelihood of experiencing specific life events
• likelihood of experiencing changes in physical and
mental health
FCA Occasional Paper 31, Ageing Population and Financial Services, September 2017
Insight &
Research
FCA Occasional Paper 31, Ageing Population and Financial Services, September 2017
Engaging
Audiences
Ofcom Adults’ Media Use and Attitudes Report, April 2018
Engaging
Audiences
FCA Financial Lives Survey 2017, June 2018
Engaging
Audiences
Ofcom Adults’ Media Use and Attitudes Report, April 2018
“The vocabulary of retirement is very muted.
Pensioners spend their ‘grey pounds’ in their ‘golden years’.
We can be ‘silver surfers’, ‘silver foxes’ or even ‘golden oldies’
but it all paints an image of a life with the colour drained out.
“As our new TV advert shows, later life couldn’t be more different.
People are enjoying a colourful and fun retirement that includes
spa breaks, meals out with friends or treating the grandkids.
“We’re always looking at different ways to help people
to get the most from a modern retirement,
whatever their plans, dreams and goals might be.
“There’s no one-size-fits-all solution for later life,
so whether it’s enabling our customers to make monthly interest repayments
or to use their housing wealth to enjoy life’s little luxuries,
we’re there to help them have a more colourful retirement.”
Content
Creation
Content
Creation
Content
Creation
Content
Creation
Innovation
and growth
The Behavioural Insights Team – A social purpose company whose mission is to apply ideas from the behavioural sciences to real world
settings. NETWORKY for Ageing aims to connect the elderly through a low-cost and accessible buddying platform that makes use of existing
technologies (SMS, landlines, internet) to combat social isolation within the elderly population.
The Chatty Cafe Scheme – A scheme encouraging cafes to have a ‘Chatter & Natter’ table so that customers who want to engage with other
customers can do so. The scheme aims to reduce loneliness and get people talking.
Digital Care Planning – The first spin-out company from the Helix Centre, Digital Care Planning aims to use AI-enable voice technology to
help individuals and families take an active role in planning and managing their care.
Echo – Echo is an app that lets users (either patients or carers) to order NHS prescriptions and get medication delivered to the door with smart
reminders to inform users when to take their medication and when they are soon to run out.
Ferret Information Systems – Ferret aims to solve the problem of take-up of means-tested benefits among the elderly by developing a system
that gives advance information about benefits entitlement and evolves over time as circumstances change.
Fuss Free Phones – A mobile phone network for the elderly and those with disabilities with telephonists to help customers make calls, send
text and search for information on the internet, while protecting customers from spam, scams and nuisance calls.
Morgan Ash – A model of assessing vulnerable customers in a similar way to consumers can get a credit score, so companies can measure
the extent of vulnerability among its customers and therefore improve the service they provide to these people.
My Care Matters – A social enterprise established to create an online tool that collects and shares a person’s non-medical needs and
preferences so they can receive dignified and tailored care when they are no longer able to engage in these conversations.
MySense – Digital health monitoring and alerting analytics platform that ingests data from a number of fixed and wearable Smart devices to
understand when there is a decline in an individual’s wellbeing.
The Society of Later Life Advisers (SOLLA) – SOLLA is creating a computer-based training programme that assists financial advisers in
identifying vulnerability, understanding its impact and developing their advice practices accordingly.
Toucan – An app that lets its users share their bank balance status with a trusted friend or carer using a simple traffic light system that protects
against financial abuse.
Walk With Path – Fighting against diminishing mobility and falls, Walk With Path makes mobility aids for those with neurological conditions
such as Parkinson’s. The solutions are user-centred, hands free and intuitive to use.
• Information provided to older consumers should be direct, simple, avoid jargon
and highlight key messages. This should help deliver easily understandable
information and support informed decisions.
• Ultimately we want to ensure that the regulatory framework:
• supports consumer communications that are clear and simple to understand
• encourages the use of new technologies to present things in ways that
interest and engage consumers.
Public
Policy
FCA Occasional Paper 31: Ageing Population and Financial Services, September 2017
Engaging
Employees
OUT WITH THE NEW,
IN WITH THE OLD
THE AGEING POPULATION AS A DRIVER FOR
CHANGE
THANK YOU
“An old horse in the manger still wants to gallop a thousand li”
[Do not underestimate old people. They are experienced
and still have high aspirations and potential]
Alistair McQueenAviva
CORPORATE PARTNERS:
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#FSFEvents
@TheFSForum - @HelloMcQueen - @AvivaUK
Kindly hosted by:
Aviva: Public
Out with the old, In with the new:The ageing population as a driver change – in the workplace
Alistair McQueenHead of Savings & Retirement at Aviva
@HelloMcQueen
38
Aviva: Public
The ageing population as a driver change – in the workplace
• Older employees – the new frontier
• Five facts about Aviva’s “mid-life MOT”
• Five lessons from Aviva’s “mid-life MOT”
39
Aviva: Public
Introducing Aviva
40
45+
Aviva: Public
Aviva’s workforce
41
EuropeNorth America
Asia
UK Restof world
15,000 15,000
5,000 5,000 5,000
Aviva UK
<30 30-50 50+
Aviva: Public
UK plc’s workforce – over time
42
Aviva: Public
The UK’s workforce – our 3 million shortfall
43
+7m
-10m
UK’s domestic workforceover next decade
Aviva: Public
The UK’s workforce – collapse in participation
44
+7m
-10m
From age 50
Aviva: Public45
1.Age is a barrier
Five insights into older workers
Aviva: Public46
1.Age is a barrier
2.Career development stops
Five insights into older workers
Aviva: Public47
1.Age is a barrier
2.Career development stops
3.Massive experience 100,000years
Five insights into older workers
Aviva: Public48
1.Age is a barrier
2.Career development stops
3.Massive experience
4.None of us are “old”
Five insights into older workers
Aviva: Public49
1.Age is a barrier
2.Career development stops
3.Massive experience
4.None of us are “old”
5.We’re worried – especially in mid life
Percentage who see “ageing”as a problem facing the UK
Five insights into older workers
Aviva: Public
Five facts about Aviva’s response
50
Aviva: Public
Five facts about Aviva’s “mid-life MOT”
51
1.The 2017 Cridland Review
Aviva: Public
Five facts about Aviva’s “mid-life MOT”
52
1.The 2017 Cridland Review
2.An “anti-retirement” pilot
Aviva: Public
Five facts about Aviva’s “mid-life MOT”
53
1.The 2017 Cridland Review
2.An “anti-retirement” pilot
3.Wealth, Work and Wellbeing
Aviva: Public
Five facts about Aviva’s “mid-life MOT”
54
1.The 2017 Cridland Review
2.An “anti-retirement” pilot
3.Wealth, Work and Wellbeing
4.Face-to-face, and online
Aviva: Public
Five facts about Aviva’s “mid-life MOT”
55
1.The 2017 Cridland Review
2.An “anti-retirement” pilot
3.Wealth, Work and Wellbeing
4.Face-to-face and online
5.Wider culture change
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
56
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
57
1.Huge demand
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
58
1.Huge demand
2.Confidence up
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
59
1.Huge demand
2.Confidence up
3.Appreciation up
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
60
1.Huge demand
2.Confidence up
3.Appreciation up
4.From age 45
Aviva: Public
Five lessons from Aviva’s “mid-life MOT”
61
1.Huge demand
2.Confidence up
3.Appreciation up
4.From age 45
5.Benefits outweigh costs
Aviva: Public
Aviva’s next steps
62
Aviva: Public
The Aviva mid-life-MOT
✓ A win for our people
✓ A win for Aviva
✓ A win for UK plc
63
Martin McGovernEx-Aberdeen Standard Investments
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Panel Discussion and Q&A5 February
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