Out With The New, In With The Old: The Ageing Population as a Driver - - PowerPoint PPT Presentation
Kindly hosted by : Out With The New, In With The Old: The Ageing Population as a Driver for Change 5 February #FSFEvents @TheFSForum - @InstinctifPtnrs - @HelloMcQueen - @AvivaUK The Financial Services Forum C ORPORATE P ARTNERS : Kindly hosted
Out With The New, In With The Old: The Ageing Population as a Driver for Change
5 February
CORPORATE PARTNERS: The Financial Services Forum
#FSFEvents
@TheFSForum - @InstinctifPtnrs - @HelloMcQueen - @AvivaUK
Kindly hosted by: Andy Lane
Instinctif Partners
CORPORATE PARTNERS: The Financial Services Forum
#FSFEvents
@TheFSForum - @InstinctifPtnrs
Kindly hosted by: OUT WITH THE NEW, IN WITH THE OLD
THE AGEING POPULATION AS A DRIVER FOR CHANGE
ANDY LANE, PARTNER, FINANCIAL SERVICES
MILLENNIAL 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
WON’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
WON’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
WON’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
WON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
More confident
about buying a house, changing mortgage provider
WON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS?
Barely any more confident
about saving for retirement, choosing pension funds
WON’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
WON’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
WON’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
FASTEST GROWING SEGMENT OF THE POPULATION
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OLDER CONSUMERS HOLD THE MAJORITY SHARE OF WEALTH
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ONE IN FOUR OF THE UK POPULATION WILL BE AGED 65+ BY 2050
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Is the financial services sector improving with age?
“When I ask for a mortgage, for example, they say it’s impossible.”
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.
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.
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.
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.
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.
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 & Research
Four key areas where older consumers typically differ to other consumer groups:
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
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
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.
and highlight key messages. This should help deliver easily understandable information and support informed decisions.
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 McQueen
Aviva
CORPORATE PARTNERS: The Financial Services Forum
#FSFEvents
@TheFSForum - @HelloMcQueen - @AvivaUK
Kindly hosted by: Out with the old, In with the new: The ageing population as a driver change – in the workplace
Alistair McQueen Head of Savings & Retirement at Aviva @HelloMcQueen
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The ageing population as a driver change – in the workplace
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Introducing Aviva
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45+
Aviva’s workforce
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Europe North America Asia
UK Rest
15,000 15,000 5,000 5,000 5,000 Aviva UK <30 30-50 50+
UK plc’s workforce – over time
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The UK’s workforce – our 3 million shortfall
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UK’s domestic workforce
The UK’s workforce – collapse in participation
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1.Age is a barrier
Five insights into older workers
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1.Age is a barrier 2.Career development stops
Five insights into older workers
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1.Age is a barrier 2.Career development stops 3.Massive experience
Five insights into older workers
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1.Age is a barrier 2.Career development stops 3.Massive experience 4.None of us are “old”
Five insights into older workers
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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
Five facts about Aviva’s response
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Five facts about Aviva’s “mid-life MOT”
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1.The 2017 Cridland Review
Five facts about Aviva’s “mid-life MOT”
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1.The 2017 Cridland Review 2.An “anti-retirement” pilot
Five facts about Aviva’s “mid-life MOT”
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1.The 2017 Cridland Review 2.An “anti-retirement” pilot 3.Wealth, Work and Wellbeing
Five facts about Aviva’s “mid-life MOT”
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1.The 2017 Cridland Review 2.An “anti-retirement” pilot 3.Wealth, Work and Wellbeing 4.Face-to-face, and online
Five facts about Aviva’s “mid-life MOT”
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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
Five lessons from Aviva’s “mid-life MOT”
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Five lessons from Aviva’s “mid-life MOT”
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1.Huge demand
Five lessons from Aviva’s “mid-life MOT”
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1.Huge demand 2.Confidence up
Five lessons from Aviva’s “mid-life MOT”
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1.Huge demand 2.Confidence up 3.Appreciation up
Five lessons from Aviva’s “mid-life MOT”
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1.Huge demand 2.Confidence up 3.Appreciation up 4.From age 45
Five lessons from Aviva’s “mid-life MOT”
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1.Huge demand 2.Confidence up 3.Appreciation up 4.From age 45 5.Benefits outweigh costs
Aviva’s next steps
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The Aviva mid-life-MOT ✓ A win for our people ✓ A win for Aviva ✓ A win for UK plc
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Martin McGovern
Ex-Aberdeen Standard Investments
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@TheFSForum
Kindly hosted by: Panel Discussion and Q&A
5 February
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