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 by : Andy Lane Instinctif Partners #FSFEvents @TheFSForum - @InstinctifPtnrs The Financial Services Forum C ORPORATE P ARTNERS :
OUT WITH THE NEW, IN WITH THE OLD THE AGEING POPULATION AS A DRIVER FOR CHANGE ANDY LANE, PARTNER, FINANCIAL SERVICES
BACKGROUND 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
THE AGEING POPULATION 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
THE AGEING POPULATION 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
THE AGEING POPULATION 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
THE AGEING POPULATION WON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS? More confident about buying a house, changing mortgage provider or completing a tax return
THE AGEING POPULATION WON’T SOMEBODY PLEASE THINK OF THE (GRAND)PARENTS? Barely any more confident about saving for retirement, choosing pension funds or exploring traditional or alternative investments
THE AGEING POPULATION 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
THE AGEING POPULATION 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
THE AGEING POPULATION 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
HIGH STAKES – AND RISING 1 FASTEST GROWING SEGMENT OF THE POPULATION 2 OLDER CONSUMERS HOLD THE MAJORITY SHARE OF WEALTH 3 ONE IN FOUR OF THE UK POPULATION WILL BE AGED 65+ BY 2050
Is the financial services sector improving with age?
“When I ask for a mortgage, for example, they say it’s impossible.”
DAILY EXPRESS 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.
MONEY OBSERVER 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.
THE INDEPENDENT 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.
FT ADVISER 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.
THE GUARDIAN 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.
DAILY EXPRESS 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: • financial needs and circumstances • capability and preferences • likelihood of experiencing specific life events • likelihood of experiencing changes in physical and 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
Content “ The vocabulary of retirement is very muted. Creation 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 or to use their housing wealth to enjoy life’s little luxuries, we’re there to help them have a more colourful retirement.”
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