Paul Flatters

April 2017

Follow The Money: targeting the diverse over 50s tribes

Introduction

http://www.bbc.co.uk/programmes/p02grmzd

"Life expectancy has been increasing….by 2.5 years per decade, three months

per year, which is really quite remarkable - six hours per day" Professor James Vaupel, Director, Max Planck Institute for Demographic Research.

The Future ‘Generational Equipoise’

Baby Boomers

Gen X

Gen Y

Gen Z

Gen ?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

% of UK population in each generational grouping; 2015 - 2030

Source: Office of National Statistics, 2014 based National Population Projections

In an era of Generational Equipoise – with four or five adult generations roughly equal in size – there are

bigger opportunities for concepts that can appeal across several generations, rather than focus on one.

Ageing Societies

26%

21% 22% 19% 18%

15% 15% 13%

9% 8% 8%

5%

30%

25% 24% 22%

20% 19% 18% 17%

13% 11% 10%

7%

0%

5%

10%

15%

20%

25%

30%

35% % of population aged over 65

1995

2015

2025

Older and politically active

Why follow the money?

Age

Household Wealth (Percentage)

Less than £12,500

£12,500 but <

£40,000

£40,000 but <

£100,000

£100,000 but <

£150,000

£150,000 but <

£250,000

£250,000 but <

£300,000

£300,000 but <

£450,000

£450,000 but <

£600,000

£600,000 but <

£1 million

£1 million or more

16-24 14 13 12 7 10 5 11 8 10 9

25-34 14 16 21 12 14 3 7 4 5 3

35-44 8 10 14 10 17 7 12 9 8 4

45-54 6 7 8 6 12 7 16 12 15 12

55-64 4 5 5 4 10 5 14 10 19 22

65+ 4 8 7 6 14 7 17 11 15 11

All 9 11 12 8 13 6 12 9 11 9

Source: Office of National Statistics, Wealth and assets survey

Impact of pension reform still to emerge

7th April 2015 1st March 2014

At what age does someone become old?

61

67 71

75

64

73

68

0

10

20

30

40

50

60

70

80

18-34 35-49 50-64 65+ Under 50 Over 50 Overall

Perceptions of personal and general ageing

At what age would you say someone becomes 'old'?

Source: Trajectory/Cigna

The Changing Meaning of Age

Changing Structure of Life

Source: Willmott, Nelson, Complicated Lives, 2005 / Trajectory

More time before family =

more time spent in

education/training

Fewer children = less time

as ‘parent’ and less

financial constraint

Longer retirement and

shorter ‘old age’ = longer

independence

Out with the old

The many faces of ageing

Complex Families

Separation. Divorce. Marriage.

Remarriage. Step-Children.

No children. My Children. Grand

Children. Mixed Ethnicity. Same Sex. Education. Housing. Child-

Care. Income. Leisure.

Privacy. Freedom. Great-Grand

Children. Vertical Families. Emigrants. Immigrants. Mixed-Faith.

Single Parents.

Work and the Unretired

• Focus on the projected growth

in people aged 50-pension age

relative to the younger

workforce

• Value of better engagement

put at £26bn

• Mature Apprenticeships

• Age Friendly business practice

• Retain, Retrain, Recruit

More life events happening over 50

0

1

2

3

4

5

6

7

8

9

10

20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64

1900-1915

1916-1930

1931-1945

1946-1960

1961-1970

Yr. born

Older consumer attitudes

Transaction type and frequency of the Over 80s

Write Cheques

Withdraw cash

Direct debit/standing order

Card payments

Phone banking or shopping

Internet banking or shopping

Cashback when shopping

Regularly At least

weekly

2% 51% 26% 36% 4% 3% 7%

Sometimes

At least monthly

19% 29% 53% 25% 5% 3% 14%

Rarely Less than monthly

33% 13% 1% 11% 12% 6% 20%

Never/not at all

46% 7% 21% 28% 79% 87% 59%

Source: The Finance Foundation, 2016

Over 80s Concerns about ATMs

[VALUE]%

[VALUE]%

[VALUE]%

63%

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

0 20 40 60 80

Other

Worried about muggers

Worried about fraud

Privacy to count money

Privacy when putting in PIN

People getting impatient

Difficulty standing in queue

Worried about mistakes

Using the buttons

Reading screen

Source: The Finance Foundation, 2016

Age and the Digital Divide

A different service culture required for the Over 70s

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

67

0 20 40 60 80

Try to stick to an exercise

regime

I enjoy shopping for new

clothes

I enjoy visiting my local pub

Banks should make it easier for

people like me to start a

business

I enjoy a glass of wine with my

evening meal

Online banking best way to

manage my money

Source: Rinkli Funstaz 2017

Challenges of today

Financial Vision With faltering steps,

an elderly customer navigates

her way to the end of a queue

in the bright, airy and

revamped bank branch

She looks at the self-service kiosks, notes the absence of

traditional glass counters,

spots staff dealing with

enquiries via tablet computers and turns to her friend.

"It's bedlam in here," she says.

http://www.bbc.co.uk/news/business-28851597

http://www.ft.com/cms/s/0/a5cfd1ba-9ffa-11e4-9a74-00144feab7de.html#slide0

“Any Time, Any Place, Any Where” Anna Botin, Santander

Good Practice

Clear signposting Multiple communications channels

Easy transference options Telephone access to advisors

Plain English Text to speak services

A New Retirement Nirvana?

'London makes perfect retirement home': pensioners opt for city living over seaside

In summary • Financial, social, cultural diversity key to the dynamics of our ageing society

• Extreme polarisation likely in the experience of ageing in the future – creating tribes from the

extremely vulnerable to the extremely financially active and engaged

• More and more financially significant ‘Big Life Events’ happening later in life

• Banking and service culture more widely needs to evolve (rapidly) to reflect a new reality

• One size will not fit all - de-construct, analyse, segment and respond to the differentiation

discovered

• Connected technologies have major positive potential for an enhanced quality of life,

independent living, communication and more

• Understanding your different older tribes is difficult, essential but potentially very rewarding

Trajectory

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+ 44 (0)20 8004 4869

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