Successful Retirement Healthy Aging and Financial Security Hong - - PowerPoint PPT Presentation

Helping people achieve a lifetime of financial security

Successful Retirement – Healthy Aging and Financial Security

Mike Mansfield

Hong Kong 21st September, 2017

Aegon Center for Longevity and Retirement

No.1 retirement dream globally:

Travel

Financial Security:

Three important tips

• 1. Start early
• 2. Become a habitual saver
• 3. Write down your retirement plan

Those who start saving for their pension at age 20 compared to age 30 can have a boost of up to 64% in their retirement savings

Non savers Aspiring savers Past savers Occasional savers Habitual savers I have a written plan 14% I have a plan, but it is not written down 44% I do not have a plan 38% Don’t know 4%

Healthy Aging:

82% of people say that health in older age is a

• concern. Yet few are doing as much as they can.

Future retirement means “flexibility”

I will change the way I work (e.g. working part-time or on temporary contracts) but

• nly for a while before I eventually give up

paid work altogether

31% 10%

I will keep working as I currently do. Retirement age won’t make a difference to the way I work

1%

Other I will immediately stop working altogether and enter full retirement

33%

I will change the way I work (e.g. working part-time

• r on temporary contracts) and I will continue paid

work throughout retirement in some capacity

16% 9%

I don’t know

39% of retirees globally retired

Reasons for doing so

sooner than planned

Japan: An aging society’s perspectives

• n health and retirement

Japanese preparedness for retirement - FINANCE

For six consecutive years, Japan has achieved the lowest score in the ARRI ranking.

Aegon Retirement Readiness Index

Source: Successful Retirement- Healthy Aging and Financial Security The Aegon Retirement Readiness Survey 2017

Global Average: 5.9

Japanese preparedness for retirement - HEALTH

More bad news for the Japanese. Japan ranks lowest in terms of self-reported health

My health is good/excellent

Source: Successful Retirement- Healthy Aging and Financial Security The Aegon Retirement Readiness Survey 2017

Global Average 68%

Health-related behaviors

Source: Successful Retirement- Healthy Aging and Financial Security The Aegon Retirement Readiness Survey 2017 Global Japan

I avoid harmful behaviors

(e.g. drinking too much alcohol or smoking)

I take my health seriously

(e.g. have routine medical check- ups and do regular self-checks)

42%

I eat healthily

(e.g. five-a-day portions of fruit and vegetables)

57%

I exercise regularly

50%

I practice mindfulness regularly

(e.g. meditation and relaxation exercises)

17%

I think about my long- term health when making lifestyle choices

(For example, I try to avoid stress)

57%

41% 45%

43%

26% 38% 31% 5%

Aren’t people in Japan healthy?

As a matter of fact, the Japanese are healthy.

Source: WHO 2014, average of male and female adults Source: WHO 2015

BMI: Japanese are in better shape

% of overweight (BMI>25) % of obesity (BMI>30)

Japan

Global average (15 countries)

24 % 3 % 54 % 21 %

BMI average (kg/m^2)

22.6 25.9

Life expectancy and healthy life expectancy longer in Japan than other countries

Global life expectancy

Life expectancy Healthy life expectancy

Global healthy life expectancy

Why are people in Japan negative about their health and retirement prospects?

Cultural aspects - Being modest and low self esteem

Reference - most people are healthy Knowing too much about the health condition? Mandatory to take annual medical check.

Example of Ningen Dock Report, complete medical examination

Financial preparedness

ARRI: Good awareness, but low understanding and even lower engagement in saving behavior. In fact, Japan has one of the lowest household savings ratios: 0.7% in 2015 (OECD)

Global Japan

Healthier people feel more ready for retirement

In Japan, those who say they are in excellent or good health achieve a higher Aegon Retirement Readiness Index score

Q- How would you describe your health overall? Base: All not fully retired (N=900)

Let’s see what it feels like to be an older person

Some elements of the Old Age Suit

Simulation of unsteady gait

Some more elements

Simulation

• f various eye

diseases

Macular degeneration Cataract Glaucoma Unilateral retinal detachment Diabetic retinopathy Retinitis pigmentosa

Strategists can be a source of inspiration in preparing for retirement

Very/somewhat aware of the need to plan financially for retirement (%) Habitual savers (%) Strongly/somewhat agree that they have a very good idea of the total value of all personal savings for retirement (%) Extremely/very confident they will have a comfortable retirement (%) Those with a written retirement strategy Those with an unwritten retirement strategy Those without a retirement strategy at all

19

48

11

29

74

88

78 53 63

42

53

76

Six tips for creating a written retirement plan

Become a habitual saver! Make a bucket list of your retirement goals and aspirations Consult a trusted adviser Think about the sacrifices you are prepared to make now and in the future Figure out where you currently are

1

Assign a cost to the things that are

• n your bucket list

2 3 4 5 6

Make a bucket list of your retirement goals and aspirations

Think big and put everything on the list to start: things like travel, new hobbies, volunteering, etc. Decide on your priorities, what is realistic, and what is not. Revisit the list frequently and talk about it with friends and family. Sharing a goal can really help build your commitment to saving for it!

Assign a cost to the things that are on your bucket list

Think about where and how you would like to live as well as your goals and aspirations. How much will it cost to move closer to the grandkids? How expensive is a ticket to the Louvre and a hotel in Paris?

Figure out where you currently are

Calculate how much you have saved already and see how much you need to reach your goals. Make a monthly budget to see how much extra you can save based on your income and planned expenses. Set yourself some short and medium term savings goals to help get you on track.

Think about sacrifices you are willing to make now and in the future

Are you prepared to save more now to reach your goals? Is moving or downsizing an option to manage expenses in the future? Are you prepared to work longer to reach your goals? Are there things you can trim from your bucket list?

Consult a trusted adviser

It is always good to check your plan with a trusted adviser to make sure that you are not forgetting anything and that your assumptions are realistic.

Become a habitual saver!

Now that you have a plan, get into the habit of saving on a consistent basis. Saving is like working out, it is hard at the start but the long term benefits are worth the effort.