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The Paradoxes of Ageing –
          and how to overcome
          them
          Geoff Mulgan
          Business of Ageing, Toronto 30 April 2012



Slide 1
Active ageing: a policy
          challenge or an innovation
                  challenge?
           Is a salutogenic world
                  possible?



Slide 2
Could we turn the participation trends around?
Michael Young (1915-2002) ‘probably the world’s
most successful entrepreneur of social enterprises’
Pioneer of new thinking about age; creator of OU,
U3A, Grandparents plus and many others...
With Peter Laslett, developed the idea of third and
fourth ages – adding years not to the end of the life
but the middle
The end of chronologism
The good news?




                 7
• Employment between the ages of 55 and 69 has increased in recent years
  (2002/3 to 2008/9); amongst men (65-69 yrs) from 15.7% to 23.7% and
  amongst women (60-64 yrs) from 29.5% to 35.0%

• Over 800,000 65+ now employed, 3.0% of all workers; doubled in ten
  years

• Of 3,000 high growth start-ups - 25 or more employees – over a third
  founded by over-50s

• A big motivator for over-50s to set up a new business: the opportunity to
  work beyond official retirement age – 30%

• Over-65s the fastest growing age group for self-employment - last year
  number setting up in business increased by 48 per cent, from 224,000 to
  332,000


  Slide 8
– B&Q retail chain long-standing policy of recruiting older
  workers

– Sainsbury’s offer a 25 year window for retirement
  between ages 50 and 75. Within this window employees
  can reduce their working hours and claim part of their
  pension while continuing to accrue further pension
  entitlements

– Ernst and Young - ‘boomerangs’ – allows former
  employees and retirees to return to the organisation




                                                              9
John Browne: a salutary warning




Slide 11   The Young Foundation 2010
Little or no narrowing of the morbidity gap




   Life expectancy, healthy life expectancy and EU–healthy life expectancy at birth, Great
   Britain 1981–2006
                                                                                             Source: ONS
The paradox


              13
The things older people say they want are
   made hard by our systems and structures:

   •to be useful and recognised
   •to be helped at home when frail by a circle
   of support
   •to end life at home surrounded by loved
   ones



Slide 14
Innovation


             15
Health spend as % GDP versus adult
            mortality rate

                            16
                            15
    Health spend as % GDP




                            14
                            13
                            12
                            11
                            10
                             9
                             8
                             7
                             6
                                 40   60           80             100   120
                                           Adult mortality rate

Source: OECD Health Data 2010
Change in health spend share of GDP
versus % improvement in adult mortality rate
                                    3.0%
  % growth in share of GDP (p.a.)




                                    2.5%

                                    2.0%

                                    1.5%

                                    1.0%

                                    0.5%

                                    0.0%
                                       0.0%   0.5%   1.0%    1.5%    2.0%     2.5%    3.0%   3.5%
                                                 % improvement in mortality rate (p.a.)
• US Congressional Budget Office: health
  spending to rise from 16% of GDP in 2007 to
  25% in 2025, 37% in 2050 and 49% in 2082.
• European Union ageing predicted to drive
  public spending up by 4 percentage points
  between 2004 and 2050.
• Purchasing power of 60+ generation in
  Germany nearly one third of total private
  consumption and will grow to over 40% by
  2050
More deliberate innovation and
experiment – not just in technologies
       and clinical solutions




                                        19
Specialised parks
               prosthetics
                                 implants
                                                   Elder universities
           Employment                              (U3A)
           agencies

                             Brain gyms
                                                   Co-housing
                                                   Career switches (ALI)
               Home
               hospices                     Care villages


           Volunteer
           transport (ITN)        Timebanks



Slide 20
Changing tools for innovation suitable for ageing




                               User innovation
                                                    Innovation in services




                                Social innovation




                                 Open innovation
NESTA INVESTMENTS

                             RESOURCE                       LEARNING &
                           EFFICIENCY FOR                  EMPLOYABILITY
                           INDIVIDUALS &
                           COMMUNITIES
                                             AGEING          NEEDS OF
                                                           YOUNG PEOPLE
                                              WELL
                                         IMPACT INVESTMENT
     VENTURE INVESTING
                                               FUND


     CATALYSING START UP                 SUPPORTING A
          SUPPORT                     DEVELOPING MARKET



                              SVI FUND        BIG SOCIETY RESEARCH & POLICY
                                            FINANCE FUND RECOMMENDATIONS
www.theamazings.org
Building capacity to develop and
spread radical social innovations in
local government – care/acute
interface a priority
Innovation networks to speed mutual learning
Age Unlimited: supporting older social
entrepreneurs in Scotland
From projects to systems …




                             30
To get from here...         ...to here...




...many things need to change in tandem
Transforming the system?


New technologies, products and   Recalibrated markets
services




New policies and regulations      Behavioural change
Transforming the system? Whole System Demonstrators
as promising but partial example …

New technologies, products and         Recalibrated markets
services




New policies and regulations            Behavioural change
Transforming a system?

New technologies, products and     Recalibrated markets
services
                                  Social Impact Bonds

                                 Age Unlimited Scotland




                                 People Powered Health




New policies and regulations         Behavioural change
Happiness


            35
Wellbeing
Mental attitudes to ageing have a significant impact on health.

                                                            Median Survival
                                                            (years)
          Those with :-
             positive attitude to ageing                               22.5
             negative attitude to ageing                               15.0
                                                            Gain        7.5

Impressive when compared to improvements in:-
       - Blood Pressure, Cholesterol: Gain 4 years
       - Obesity, Smoking, Exercise: Gain 1-3 years

‘Longevity Increased by Positive Self-Perceptions of Ageing’, Becca R. Levy et al,
Journal of Personality and Social Psychology, 2002, Vol. 83, No. 2, 261-270
Resilience and well-being
       -2      -1           0             1        2
10




12




14




16




18




            Divorce   Widowed   Remained married
High sociability associated with less
          cold symptoms




                Cohen et al, 2003
Peckham and the
salutogenic workplace?



                         41
What kind of economy allows us to thrive all
our lives? What economy makes people a
  renewable asset not a disposable one?




                                               42
Overcoming Ageing Paradoxes

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Overcoming Ageing Paradoxes

  • 1. The Paradoxes of Ageing – and how to overcome them Geoff Mulgan Business of Ageing, Toronto 30 April 2012 Slide 1
  • 2. Active ageing: a policy challenge or an innovation challenge? Is a salutogenic world possible? Slide 2
  • 3. Could we turn the participation trends around?
  • 4.
  • 5. Michael Young (1915-2002) ‘probably the world’s most successful entrepreneur of social enterprises’ Pioneer of new thinking about age; creator of OU, U3A, Grandparents plus and many others... With Peter Laslett, developed the idea of third and fourth ages – adding years not to the end of the life but the middle
  • 6. The end of chronologism
  • 8. • Employment between the ages of 55 and 69 has increased in recent years (2002/3 to 2008/9); amongst men (65-69 yrs) from 15.7% to 23.7% and amongst women (60-64 yrs) from 29.5% to 35.0% • Over 800,000 65+ now employed, 3.0% of all workers; doubled in ten years • Of 3,000 high growth start-ups - 25 or more employees – over a third founded by over-50s • A big motivator for over-50s to set up a new business: the opportunity to work beyond official retirement age – 30% • Over-65s the fastest growing age group for self-employment - last year number setting up in business increased by 48 per cent, from 224,000 to 332,000 Slide 8
  • 9. – B&Q retail chain long-standing policy of recruiting older workers – Sainsbury’s offer a 25 year window for retirement between ages 50 and 75. Within this window employees can reduce their working hours and claim part of their pension while continuing to accrue further pension entitlements – Ernst and Young - ‘boomerangs’ – allows former employees and retirees to return to the organisation 9
  • 10.
  • 11. John Browne: a salutary warning Slide 11 The Young Foundation 2010
  • 12. Little or no narrowing of the morbidity gap Life expectancy, healthy life expectancy and EU–healthy life expectancy at birth, Great Britain 1981–2006 Source: ONS
  • 14. The things older people say they want are made hard by our systems and structures: •to be useful and recognised •to be helped at home when frail by a circle of support •to end life at home surrounded by loved ones Slide 14
  • 16. Health spend as % GDP versus adult mortality rate 16 15 Health spend as % GDP 14 13 12 11 10 9 8 7 6 40 60 80 100 120 Adult mortality rate Source: OECD Health Data 2010
  • 17. Change in health spend share of GDP versus % improvement in adult mortality rate 3.0% % growth in share of GDP (p.a.) 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% % improvement in mortality rate (p.a.)
  • 18. • US Congressional Budget Office: health spending to rise from 16% of GDP in 2007 to 25% in 2025, 37% in 2050 and 49% in 2082. • European Union ageing predicted to drive public spending up by 4 percentage points between 2004 and 2050. • Purchasing power of 60+ generation in Germany nearly one third of total private consumption and will grow to over 40% by 2050
  • 19. More deliberate innovation and experiment – not just in technologies and clinical solutions 19
  • 20. Specialised parks prosthetics implants Elder universities Employment (U3A) agencies Brain gyms Co-housing Career switches (ALI) Home hospices Care villages Volunteer transport (ITN) Timebanks Slide 20
  • 21. Changing tools for innovation suitable for ageing User innovation Innovation in services Social innovation Open innovation
  • 22. NESTA INVESTMENTS RESOURCE LEARNING & EFFICIENCY FOR EMPLOYABILITY INDIVIDUALS & COMMUNITIES AGEING NEEDS OF YOUNG PEOPLE WELL IMPACT INVESTMENT VENTURE INVESTING FUND CATALYSING START UP SUPPORTING A SUPPORT DEVELOPING MARKET SVI FUND BIG SOCIETY RESEARCH & POLICY FINANCE FUND RECOMMENDATIONS
  • 23.
  • 24.
  • 26. Building capacity to develop and spread radical social innovations in local government – care/acute interface a priority
  • 27.
  • 28. Innovation networks to speed mutual learning
  • 29. Age Unlimited: supporting older social entrepreneurs in Scotland
  • 30. From projects to systems … 30
  • 31. To get from here... ...to here... ...many things need to change in tandem
  • 32. Transforming the system? New technologies, products and Recalibrated markets services New policies and regulations Behavioural change
  • 33. Transforming the system? Whole System Demonstrators as promising but partial example … New technologies, products and Recalibrated markets services New policies and regulations Behavioural change
  • 34. Transforming a system? New technologies, products and Recalibrated markets services Social Impact Bonds Age Unlimited Scotland People Powered Health New policies and regulations Behavioural change
  • 35. Happiness 35
  • 36. Wellbeing Mental attitudes to ageing have a significant impact on health. Median Survival (years) Those with :- positive attitude to ageing 22.5 negative attitude to ageing 15.0 Gain 7.5 Impressive when compared to improvements in:- - Blood Pressure, Cholesterol: Gain 4 years - Obesity, Smoking, Exercise: Gain 1-3 years ‘Longevity Increased by Positive Self-Perceptions of Ageing’, Becca R. Levy et al, Journal of Personality and Social Psychology, 2002, Vol. 83, No. 2, 261-270
  • 37. Resilience and well-being -2 -1 0 1 2 10 12 14 16 18 Divorce Widowed Remained married
  • 38. High sociability associated with less cold symptoms Cohen et al, 2003
  • 39.
  • 40.
  • 42. What kind of economy allows us to thrive all our lives? What economy makes people a renewable asset not a disposable one? 42

Editor's Notes

  1. There has been an explosion in these sorts of challenge prizes being used for social innovationSome of these will be very familiar to some of you The X-Prize foundation perhaps the most well established, largely science and technology prize, such as the ambitious Ansari X Prize: $10m to the first private-sector group able to fly a reusable spacecraft 100km (62 miles) into space twice within two weeksOr $10m Progressive Automotive X Prize, for green cars that are capable of achieving at least 100mpg, or its equivalent. InnoCentive – online platform that runs challenge prizes on behalf of partners. Chicago city transport challenge; NESTA education prize; diabetes drug development InnoCentive run US ‘challengegov’ platform – govt opening out challenges to the public, NHS innovation prizes, And demand from UK Govt to implement as part of innovation strategy Euclid Naples competitions challenged entrants to develop sustainable solutions to community issues in the Italian cityDell social innovation challenge launched recently closes early next year
  2. Skills NESTA programme CC MunicipalitiesRadical innovationAppetite E.g. Havering Stoke
  3. You can see that very clearly in a field like waste and recycling where over the last 20-30 years our whole systems have shifted from collecting paper, bottles, glass and metal and then burying it underground in landfill sites to much higher proportions of recycling or use of waste for energy. If we look at what makes this sort of systemic change happen, it turns out they require many things to change in tandem.
  4. The workplaceThe school, hospitalPrivate lifeCommunity No obious boundaries