PERSPECTIVES

Dawn of a New Age: Financial Services Will Evolve to Reflect the New Longevity

2019-08-09


As life expectancies grow, traditional retirement is being replaced by a vibrant third age. To succeed, banks and insurers must leverage technology to deliver products and services reflecting this worldwide shift. Come with us, and with 97-year-old Jessica, as we envision how these offerings might work.

It’s time to retire the concept of retirement as we know it. With more and more individuals living to 100 and beyond, the “sunset years” that were once expected to last about a decade have been replaced by a third age marked by creativity, wisdom, ongoing employment and vitality.

Traditional retirement solutions aren’t enough to support these longer time spans, as we noted in “Life Expectancies Are Changing — Why Aren’t Financial Services Offerings?” For most people, saving enough for a quarter-century (and perhaps longer) of retirement, without ongoing work-related income, just isn’t realistic.

To see how the banking, financial services and insurance sector might address this challenge, visit with us the near future and meet Jessica — who, at 97, works as a behavioral scientist; travels; takes sabbaticals; and enjoys a rich family life. Myriad personal financial products and services that pivot around healthcare improvements, advanced artificial intelligence and predictive analytics, all underpinned by more tightly integrated data and enhanced privacy protection will be needed to help individuals like Jessica to maintain — if not extend — their financial resilience and live more comfortably in their sunset years.

In this vision, financial institutions must pull information from a staggering number of sources to offer a new generation of personalized products and services. The challenges, notably gaining and keeping individuals’ trust, will be stiff — but the opportunities will be plentiful.

Come along as we drop in on Jessica and an enviable, and entirely possible, future.

To learn more, read our white paper “Reimagining Retirement: Longevity and the Future of Financial Services,” or visit the Digital Strategy section of our website.