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Welcome to Longevity Opportunity Community

A forum that explores the challenges and opportunities presented by longevity and provides a collaborative platform to accelerate and scale innovative approaches that improve the short and long term financial resilience of individuals.

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The
longevity
Opportunity

The End of Retirement?

icon

One in three

people born
today will reach
100

Fertility rates are declining

Fertility

fertility rate required to keep the population stable

2.1

1.88

fertility rate
in the UK

The existing population is
ageing rapidly.
By 2020 half the working population
will be over 50 years of age

The fastest increase will be seen in the
85 years and over age group

15.8%

1.5%

18%

2%

26%

7%

mid
1991

mid
2016

mid
2066

Over the same period, the median age is expected to rise from

34

arrow

43

These fundamental changes in the age structure of our population are challenging many of our assumptions around education, work, health and our finances.

The assumptions need to be examined and adapted in the following ways to facilitate opportunities across these four key areas.

Old Reality

Education

Work

Retirement

New Reality

Finances

Finances

Services and products that develop and maintain both short and long term  financial resilience

Education

Education

Continuous development and lifelong learning as the new normal

Work

Work

Personalised retirement age based on biological age and individual preference

Health

Health

Later life working enhancing health resilience

Finances

Finances

 

Defined benefit is an endangered species

 

Active membership of private sector occupational
pension schemes by status and benefit structure.

 

An average earner saving
8%
would still need to work to
age 77
to achieve a retirement income of
2/3rd of pre-retirement earnings.

 

Significant barriers
to savings exist

Between 1997 and 2016:

Average earnings have only risen
68%

Median price paid for homes leapt
259%

Private renter needs roughly an extra £185k in retirement to cover off their rent in order to leave them in the same position net of housing costs as an outright home owner.

These barriers are
impacting savings

53%

of people in their 20s say they can’t afford to save for the long term because of competing financial priorities.

26%

of working age adults have
NO rainy day savings.

58%

of working adults say they have
less than £500 to hand.

17%

of working age adults say they
have no disposable income.

Read more about
The future of finance
Flexible and individualised financial services and products that improve individual and collective financial resilience.
Under Construction
Coming February 2019
Education

Education

 

One educational period before starting work is no longer sufficient.

 

Education needs to be accessible throughout life to address the growing need for highly skilled workers.

 

Jobs of the future will require a highly-trained workforce with over
300k
new jobs created in the next seven years alone

 
 

By
2020

There will be 7.5 million less workers than jobs.

EVERY UK employer would need to increase the number of workers aged 50-69 in the UK by 12% to address this widening skills gap.

 

Solutions are slowly arising in the form of:

As of 2016,
Massive Open Online Courses (MOOCs) has a student base of more than 58 million students across the globe accessing courses from more than 700 universities

DWP - Apprenticeships
see a new makeover as they get extended to people for all age groups. 11.3 % of those starting an apprenticeship in 2015/16 were aged between
45 and 59

Read more about
The future of education
Lifelong Learning: Sustaining a Career amidst Perpetual Digital Change.
READ MORE
Work

Work

 

We can now work for as long as we want and for many of us, our working lives may extend beyond 50+ years.

 

Increasing numbers of over 50's
will participate in the workforce.

Today over 50s form

27%
of the workforce

By 2020 it will be

33%

86%

65%

31%

50
year olds

60
year olds

65
year olds

The economic benefits of getting older workers
into employment

UK GDP would be
9% higher

if we matched
the employment rate in
New Zealand
of those aged 55 and over

If the employment rate of people
aged 50-64 matched that of
those aged 35-49,

it would add more than
5%
to UK GDP,
or £88bn

Read more about
The future of work
Grey Is The New Black: Opportunities and Challenges of a Multi-Generation Workforce.
Under Construction
Coming January 2019
Health

Health

 

People are increasingly healthy and employable up to very advanced ages and retirement can negatively impact their lives.

 

Increasing mortality means we can expect healthier active years after what retirement age is currently.

A 60-year-old female can expect to live another 25 years most likely in good health.

And among those aged 70–74,

61% of men
and
68% of women

report that their health does not in any way limit the kind or amount of work they could do if they wished to.

Increasing research around
the effects of retirement show:

Retirement can be bad for your health:

have a significant negative impact on cognitive ability.

increase social isolation which impacts physical and mental health negatively.

Delaying retirement is thought to benefit your health by:

helping to stave
off dementia

helping to maintain or increase memory and mental processing speeds.

Regarding the reasons why people
work past standard pension age:

50%

said they were simply not ready to stop working.

15%

said they had bills to pay.

7%

said it was to boost their pension pot.

Improving mental health for workers of every age is an increasingly important challenge for business

64%
of people with common mental health problems are employed; therefore, in the UK, there are an estimated 4.6 million people in work who may have a common mental health problem.

 

In 2016,
41%
of businesses reported an increase in mental health problems such as anxiety and depression.

Read more about
The future of health
Beyond the Standard Pension Age: The Health Benefits of Active Participation in Work.
Under Construction
Coming March 2019

The
longevity
Opportunity

A broader market approach that benefits everyone

As the fourth industrial revolution dawns, a new positive approach is needed to address the opportunities created by increasing longevity.

Financial services providers need to reengage with individuals and the the wider financial services ecosystem by finding ways to help individuals strengthen their short and long term financial resilience, so that these individuals can live not only longer lives, but better lives.

We can create personalised solutions for individuals that strengthen their financial resilience but this will require new ways of engaging with individuals that address the barriers that they face as they navigate their increasingly complex and varied longer lives.

If we can do this intelligently, then addressing longevity presents an amazing opportunity for economic growth and individual wealth creation.

We need to shape a future that works for all of us by putting people first and empowering them with the advice and products that increase their productivity and potential to live long and fulfilling lives.

CONTINUE THE CONVERSATION

LATEST THINKING

David Swan
Lifelong Learning: Sustaining a Career Amid Perpetual Digital Change

I recently attended a session on senior-year education at my son’s school. It focused entirely on the importance of preparing young adults for the next stage in their lives, be it further education or the working world.

READ THE BLOG

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Assistant Vice President, Leader of Cognizant Consulting’s Insurance Practice for UK & Ireland

BIOGRAPHY

Faisal Aziz

Assistant Vice President, Leader of Cognizant Consulting’s Insurance Practice for UK & Ireland

Faisal leads Cognizant Consulting’s Insurance Practice for the UK & Ireland that includes a large team of strategy, architecture and delivery subject matter experts. He is passionate about the enabling role of technology and financial services to improve the financial resilience and well-being of those on low and middle incomes, across all age groups. He is a graduate of Imperial College and has worked in the Insurance industry for over 20 years.

 


Vice President, Leader of Cognizant’s Insurance Practice for UK & Ireland

BIOGRAPHY

David Sexton

Vice President, Leader of Cognizant’s Insurance Practice for UK & Ireland

David Sexton is Vice President and a leader of Cognizant’s Insurance Practice for UK & Ireland, covering all industry subsectors - life and pensions, general insurance and the London market. He is responsible for Cognizant’s response to the UK insurance industry challenges, delivering to our existing client engagements and bringing Cognizant’s IT modernization and industry innovation to our clients and the UK&I insurance arena. Based in London, David brings 20 years of experience in insurance and technology.

 

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