This document discusses challenges related to increasing life expectancy and proposes solutions for long-term income protection. It notes that people are living and working longer. Conventional insurance often only provides income replacement until age 65 but many will live decades longer. The document introduces Myriad's "Longevity Protectors" which extend income protection benefits later in life through benefit increases. This comprehensive solution helps ensure clients are protected against outliving their savings.
Five Crucial Retirement Planning Concepts:
Part One describes our need to shift from an accumulation mind-set to one of distribution, making sure our money lasts as long as we are alive.
Part Two describes the three colors of money: Yellow (cash), Red (stock market) and Green (safe investments with no loss, steady growth, and pension-like income).
Part Three describes how Social Security Timing works between age 62-70. By delaying, you gain 8% more each year - and the "missing income" before 70 can be supplied by green money.
Part Four describes how 70% of us will incur high long term care expenses while only 10% are insured for it — and what you can do to triple the value of your money to care for this need without risk of loss.
Part Five details six alternative “green” investment options that produce a safe 7-10% yield over 5-10 years without any market risk — allowing you to make your nest egg stronger and larger to sustain a 30 year retirement.
Professor Les Mayhew's presentation, given on Thursday 12th November at the launch of Cass Business School's research report 'Pension pots and how to survive them'.
Five Crucial Retirement Planning Concepts:
Part One describes our need to shift from an accumulation mind-set to one of distribution, making sure our money lasts as long as we are alive.
Part Two describes the three colors of money: Yellow (cash), Red (stock market) and Green (safe investments with no loss, steady growth, and pension-like income).
Part Three describes how Social Security Timing works between age 62-70. By delaying, you gain 8% more each year - and the "missing income" before 70 can be supplied by green money.
Part Four describes how 70% of us will incur high long term care expenses while only 10% are insured for it — and what you can do to triple the value of your money to care for this need without risk of loss.
Part Five details six alternative “green” investment options that produce a safe 7-10% yield over 5-10 years without any market risk — allowing you to make your nest egg stronger and larger to sustain a 30 year retirement.
Professor Les Mayhew's presentation, given on Thursday 12th November at the launch of Cass Business School's research report 'Pension pots and how to survive them'.
How to eliminate market risk with the potential to earn up to 15% per year tax-free, have the option to borrow tax-free with no need to repay the loan and take monies out tax-free before or after retirement.
David John, Senior Senior Strategic Policy Adviser at AARP’s Public Policy In...ILC- UK
In July 2015, the Government began a consultation on changing how the UK incentivises private pension saving, and the Chancellor is expected to respond to this consultation in the Government’s annual Budget in March 2016.
The Future of Private Pension Saving, kindly supported by Age UK, brought together Parliamentarians, business, academics and industry experts to discuss how best the UK Government can incentivise private pension saving.
The debate was opened by initial remarks from Angela Rayner MP (Shadow Pensions Minister), Jackie Wells (Head of Policy and Research, Pensions and Lifetime Savings Association), Sarah Luheshi (Deputy Director, Pensions Policy Institute), and Yvonne Braun (Director, Long-Term Savings Policy, Association of British Insurers).
On Wednesday 27th January, David John, Senior Strategic Policy Adviser at AARP’s Public Policy Institute, and Deputy Director of the Retirement Security Project at the Brookings institute delivered a presentation on tax incentives for pension saving in the US context at an informal reception hosted by Age UK.
Discussions from this event contributed to a formal representation to the HM Treasury regarding Government policy on pensions tax relief and private pension saving.
Overcoming Inequalities: Addressing barriers to extending working livesILC- UK
Socio-economic inequalities continue to present challenges to the Government’s Fuller Working Lives programme, and research conducted by the ILC-UK in 2015 found that although 1.1 million people are currently working beyond state pension age, 1 million people aged 50-64 have been forced out of work through a combination of redundancy, ill health or early retirement.
This one day conference, hosted by the ILC-UK and research teams from renEWL and the Uncertain Futures consortium allowed policy makers, business leaders, civil society organisations and academics to engage with new research findings on the socio-economic inequalities preventing some sections of the population from achieving longer, fuller working lives. The conference examined the current barriers to extending working lives: health inequalities, work place practice, and the policy barriers that Government, business and civil society can work collectively to address.
Speakers included:
John Cridland, Independent Reviewer of the State Pension Age
- Professor David Armstrong, Department of Primary Care and Public Health Sciences, King's College London
- Professor Jenny Head, Professor of Medical and Social Statistics, UCL
- Prof. Sarah Vickerstaff, Professor of Work and Employment, University of Kent
- Dr Mai Stafford, renEWL
- Dr Charlotte Clark, Uncertain Futures Research Consortium
- Peter Kelly, Senior Psychologist, Health and Safety Executive
- Nicola Lee, Employment Relations Adviser, RCN
- Dr Ewan Carr, renEWL
- Professor Wendy Loretto, Uncertain Futures Research Consortium
- Patrick Thomson, Senior Programme Manager, Centre for Ageing Better
- Denise Keating, CEO, Employers Network for Equality and Inclusion
- Yvonne Sonsino, Innovation Leader, Mercer Europe and Pacific
- Dr Emily Murray, renEWL
- Professor Chris Phillipson, Uncertain Futures Research Consortium
- Russell Taylor, DWP Fuller Working Lives Team
- Caroline Abrahams, Charity Director, Age UK
- Professor Stephen Stansfeld, renEWL
- Dr Joanne Crawford, Uncertain Futures Research Consortium
- Rachael Saunders, Business in the Community
During 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc (Partnership), is undertaking a series of events to explore the relationship between our changing demography and public policy.
The second event in the series will explore how much we really know about life expectancy at the highest ages. How many of us are living to 90 and beyond? Why have estimates of life expectancy required revision? What does this tell us about increasing longevity? And what does this trend mean for public policy and long-term population planning?
Feedsy streamlines how you stay connected with clients (and stay front of mind). Putting together newsletters or coming up with ideas for social media updates is effortless with Feedsy.
Feedsy provides content for you and delivers it to your own news apps, enewsletter and news web pages.
On the 12th October 2016, the ILC-UK held a Housing in an Ageing Society event, kindly hosted by Legal & General and supported by the ILC-UK Partners Programme.
On Tuesday, 19th July the International Longevity Centre - UK (ILC-UK) launched our “Housing in an ageing society” factpack with the support of FirstPort.
The report found a significant increase in older people living alone, yet millions were failing to adapt their homes to help them live independently.
The State of the Nation’s Housing’ reports that:Only around half of those over 50s experiencing limitations in Activities of Daily Living, live in homes with any adaptations.
Those in retirement housing are significantly more likely to be living in homes with adaptations than those who do not. Approximately 87% of those in retirement housing have home adaptations, by comparison to around 60% of other housing.
There could be a retirement housing gap of 160,000 by 2030 if current trends continue. By 2050, the gap could grow to 376,000.
Over 16 million people – mainly owner occupied, middle aged and older households - live in under-occupied housing.
Growing numbers of 45-64 year olds, and 65-74 year olds are living alone, with 6 million people living in houses with two or more excess bedrooms.
At the event we explored these trends and consider how policymakers should respond.
We heard presentations from:
- Sally Randall, Director, Housing Standards and Support, Department for Communities and Local Government
- Nigel Wilson, Group Chief Executive, Legal & General;
- Dr Brian Beach, Research Fellow, ILC-UK
Australia’s system of superannuation has wide coverage but often provides an inadequate level of retirement income. I have written an aricle for the UK Actuary Magazine calling for government, regulators and the pension industry to work together to improve the situation
- See more at: http://www.theactuary.com/features/2014/07/can-the-tide-turn-for-oz-pensions/#sthash.2tRj31vl.dpuf
How to eliminate market risk with the potential to earn up to 15% per year tax-free, have the option to borrow tax-free with no need to repay the loan and take monies out tax-free before or after retirement.
David John, Senior Senior Strategic Policy Adviser at AARP’s Public Policy In...ILC- UK
In July 2015, the Government began a consultation on changing how the UK incentivises private pension saving, and the Chancellor is expected to respond to this consultation in the Government’s annual Budget in March 2016.
The Future of Private Pension Saving, kindly supported by Age UK, brought together Parliamentarians, business, academics and industry experts to discuss how best the UK Government can incentivise private pension saving.
The debate was opened by initial remarks from Angela Rayner MP (Shadow Pensions Minister), Jackie Wells (Head of Policy and Research, Pensions and Lifetime Savings Association), Sarah Luheshi (Deputy Director, Pensions Policy Institute), and Yvonne Braun (Director, Long-Term Savings Policy, Association of British Insurers).
On Wednesday 27th January, David John, Senior Strategic Policy Adviser at AARP’s Public Policy Institute, and Deputy Director of the Retirement Security Project at the Brookings institute delivered a presentation on tax incentives for pension saving in the US context at an informal reception hosted by Age UK.
Discussions from this event contributed to a formal representation to the HM Treasury regarding Government policy on pensions tax relief and private pension saving.
Overcoming Inequalities: Addressing barriers to extending working livesILC- UK
Socio-economic inequalities continue to present challenges to the Government’s Fuller Working Lives programme, and research conducted by the ILC-UK in 2015 found that although 1.1 million people are currently working beyond state pension age, 1 million people aged 50-64 have been forced out of work through a combination of redundancy, ill health or early retirement.
This one day conference, hosted by the ILC-UK and research teams from renEWL and the Uncertain Futures consortium allowed policy makers, business leaders, civil society organisations and academics to engage with new research findings on the socio-economic inequalities preventing some sections of the population from achieving longer, fuller working lives. The conference examined the current barriers to extending working lives: health inequalities, work place practice, and the policy barriers that Government, business and civil society can work collectively to address.
Speakers included:
John Cridland, Independent Reviewer of the State Pension Age
- Professor David Armstrong, Department of Primary Care and Public Health Sciences, King's College London
- Professor Jenny Head, Professor of Medical and Social Statistics, UCL
- Prof. Sarah Vickerstaff, Professor of Work and Employment, University of Kent
- Dr Mai Stafford, renEWL
- Dr Charlotte Clark, Uncertain Futures Research Consortium
- Peter Kelly, Senior Psychologist, Health and Safety Executive
- Nicola Lee, Employment Relations Adviser, RCN
- Dr Ewan Carr, renEWL
- Professor Wendy Loretto, Uncertain Futures Research Consortium
- Patrick Thomson, Senior Programme Manager, Centre for Ageing Better
- Denise Keating, CEO, Employers Network for Equality and Inclusion
- Yvonne Sonsino, Innovation Leader, Mercer Europe and Pacific
- Dr Emily Murray, renEWL
- Professor Chris Phillipson, Uncertain Futures Research Consortium
- Russell Taylor, DWP Fuller Working Lives Team
- Caroline Abrahams, Charity Director, Age UK
- Professor Stephen Stansfeld, renEWL
- Dr Joanne Crawford, Uncertain Futures Research Consortium
- Rachael Saunders, Business in the Community
During 2014, ILC-UK, supported by specialist insurance company, Partnership Assurance Group plc (Partnership), is undertaking a series of events to explore the relationship between our changing demography and public policy.
The second event in the series will explore how much we really know about life expectancy at the highest ages. How many of us are living to 90 and beyond? Why have estimates of life expectancy required revision? What does this tell us about increasing longevity? And what does this trend mean for public policy and long-term population planning?
Feedsy streamlines how you stay connected with clients (and stay front of mind). Putting together newsletters or coming up with ideas for social media updates is effortless with Feedsy.
Feedsy provides content for you and delivers it to your own news apps, enewsletter and news web pages.
On the 12th October 2016, the ILC-UK held a Housing in an Ageing Society event, kindly hosted by Legal & General and supported by the ILC-UK Partners Programme.
On Tuesday, 19th July the International Longevity Centre - UK (ILC-UK) launched our “Housing in an ageing society” factpack with the support of FirstPort.
The report found a significant increase in older people living alone, yet millions were failing to adapt their homes to help them live independently.
The State of the Nation’s Housing’ reports that:Only around half of those over 50s experiencing limitations in Activities of Daily Living, live in homes with any adaptations.
Those in retirement housing are significantly more likely to be living in homes with adaptations than those who do not. Approximately 87% of those in retirement housing have home adaptations, by comparison to around 60% of other housing.
There could be a retirement housing gap of 160,000 by 2030 if current trends continue. By 2050, the gap could grow to 376,000.
Over 16 million people – mainly owner occupied, middle aged and older households - live in under-occupied housing.
Growing numbers of 45-64 year olds, and 65-74 year olds are living alone, with 6 million people living in houses with two or more excess bedrooms.
At the event we explored these trends and consider how policymakers should respond.
We heard presentations from:
- Sally Randall, Director, Housing Standards and Support, Department for Communities and Local Government
- Nigel Wilson, Group Chief Executive, Legal & General;
- Dr Brian Beach, Research Fellow, ILC-UK
Australia’s system of superannuation has wide coverage but often provides an inadequate level of retirement income. I have written an aricle for the UK Actuary Magazine calling for government, regulators and the pension industry to work together to improve the situation
- See more at: http://www.theactuary.com/features/2014/07/can-the-tide-turn-for-oz-pensions/#sthash.2tRj31vl.dpuf
When It Comes To Illness The Choice Of Benefit Is Critical June 2011Francois Tranter
Most of us will need some type of chronic illness care during our lifetime. With our retirement savings under pressure and with medical aid benefits falling woefully short, it is time to make critical illness benefits a part of everyone\’s financial planning.
Mark Miller, author of the forthcoming The Hard Times Guide to Retirement Security and editor and publisher of RetirementRevised.com spoke on the challenges and solutions facing boomers in the transition years.
You can’t always protect yourself and your loved ones from life’s uncertainties. Although we don’t like to think about it, we know that traumatic and tragic events may not always only happen to other people.
It is important to protect your home and car. And most people do. But it is also important to protect your life, your ability to earn an income, your health and your business interests.
Protecting loved ones from financial hardship should be an integral part of any financial plan. This guide explains why life insurance is so important for you and your family. It provides an overview of the different types of life insurance strategies available and case studies showing how they could protect you and your loved ones.
With the help of a Suncorp Financial Planner or Suncorp Authorised Representative, you can then develop a comprehensive risk management plan and decide how much is enough to keep you and your family’s lifestyle, dreams and future financially secure.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
PICTURE IT your moment of retirement. You’ve worked hard to get here. Now it’s time to
do all of the things you’ve been dreaming about for the last 40 years. Whatever it is you want
to do, you’re going to need to make sure you have a paycheck to do it.
During your working years, your focus was saving for retirement. But now your focus shifts to
creating income in retirement. That means creating a paycheck from your retirement savings.
When planning how much income you’ll need for your retirement paycheck, it’s important to
consider the impact outside factors can have on how long your money will last.
Is Your Retirement At Risk In Today's Economy?Neal Mandelbaum
If you are seeking guaranteed, predictable income that you cannot outlive with the flexibility to start and stop your payments, then Income For Life may be right for you.
2. Agenda Living longer working longer Life expectancy of the disabled Financial planning implications Unique Myriad solution Opportunities
3. Many of us have been sold an unrealistic vision of retirement
4. But most of us cannot afford to spend a third of our lives on holiday
5. The history of retirement A relatively new concept Work-until-you-die model until late 19th century In the 1880’s, more than 75% of men over 64 still worked Half of 85-year olds still worked
6. The history of retirement Retirement invented in 1898 by Otto von Bismarck Made possible by the move from farm to factory Retirement age was 70, well beyond the average life expectancy of 44 then Changed in 1925 to 65 Has not changed despite increase in life expectancy
7. Life expectancy at 65 Life expectancy at 65, male, years 1940 2007 France 9.90 18.15 United States 11.94 17.52 Britain 10.84 17.40
19. Retirement age trends Early retirement trend is being reversed Rich countries have no choice but to raise the retirement age Social security, pension deficits Falling support ratio Retirement age heading towards 70 Trend should spill over to South Africa
20. Hiring granny Knowledge-based economy Healthier bodies Animal spirit still there 55-64s launched more businesses than 20-34s Advantages of older employees Decades of experience and knowledge Repositories of company values People skills Lower levels of absenteeism
21. Hiring granny Retirement as a process, not an event Accommodating older workers Flexible hours Job sharing Telecommuting Just-in-time workforce Mentoring
22. Stats, expectations, predictions 1/3rd of Americans pursue second career after retirement Half expect to work until their 70s Number of workers aged 65 and over predicted to soar by 80% by 2016 South African labour force participation rate of males 65+ 1997: 10% 2007: 32% Boom in SMEs
23. “A new life stage is emerging between midlife and retirement”
24. Irving Kahn, 105 and Helen Reichert, 109Brother and sister from New York City; Kahn goes to his financial-services office daily, and Reichert enjoys movies. A recent favourite:Iron Man.
25. MiemsSwanepoel, 76, CEO MADventure, Cape TownTries something new every 5 years. Going hiking in the Peru next year
29. Case study Kelly earns R20 000 She starts saving 15% from age 30 Life expectancy at 70 in 2050: 100 years If she works until age 75, she will receive 75% of her salary if she lives until 100
30. Case study (continued) She insures 100% of her income up to age 65 If she becomes disabled, she will only receive 50% of her salary after age 65 (assuming she lives until age 90)
32. Life expectancy of the disabled Some disabilities have little impact on life expectancy, e.g. Limb impairments Spinal cord injuries These injuries typically accident related (⅓ rd of Momentum’s claims) Other disabilities are as a result of illness And are impacted by medical technology Life expectancy improves daily
33. Major claim causes Musculoskeletal 36% Mental and behavioural 13% Cancer 11% Cardiovascular 10% Other 30%
39. How long do you assume your clients will live with a disability?
40. How much should your disabled clients withdraw from their capital annually?
41. How do you ensure that clients are protected against the risk of outliving their capital?
42. Are lump sums still appropriate considering the long term need?
43. Are lump sums still appropriate? The money illusion: Millionaire vs middle class Client may go on a spending spree Even if not… For the same premium as an Income Protector, how long will a lump sum last you?
44. Are lump sums still appropriate? Case study: 40 year old male non-smoker, best rates Income of R40 000 Insures 75% of income to age 65 IP premium is R630 Same premium could buy lump sum cover of R3.9m If invested, lump sum will only get the client half way to retirement!
45. Settling debt Lump sum vs. income Lump sum advantage – no further interest payable Still a place in financial planning
46. The problem with the conventional way 100% replacement only up to age 65 Extra working years lost Selection risk cause insurance to lag the trend Conundrum: disabled client may have to rely on their own capital for decades after income protection payouts cease
48. Why Myriad? Comprehensive lump sum solutions Market-leading income protection benefits 100% solution on temporary and permanent disability Best of sickness and loss of income Built-in impairment and illness events Partial claim upgrade Claim increase booster
49. Why Myriad? Market share Claims success stories Launch of the Longevity Protectors
50. Longevity Protector case study 1 John, age 35, takes out an Income Protector of R22 500 with a 5% benefit increase. R6 million* R6 million* Claim R22 500 pm *Five yearly payouts in real terms as at age 65 Age 35
51. Longevity Protector case study 2 John, age 35, takes out Death Benefit and Comprehensive Disability Benefit of R1 million with a 5% benefit increase. R200 000 in real terms R200 000 in real terms Claim R1 million Age 35
54. Opportunities Use income benefits for long term, lump sums for once off Extend expiry age to age 70 Longevity protection
Editor's Notes
No matter how keen a saver you may be, raising children and maintaining even a modest lifestyle often does not leave enough money to spend a third of your life on holiday
No matter how keen a saver you may be, raising children and maintaining even a modest lifestyle often does not leave enough money to spend a third of your life on holiday
NPR.org » When It Comes To Retirement, 67 Is The New 55 http://t.co/mhK4dG7A fundamental shift is underway. Life expectancy is rising and as a result countries everywhere are raising the retirement age. A new life stage is emerging between midlife and retirement. In this new era conventional solutions will fall short. A new mindset to income protection is required.
NPR.org » When It Comes To Retirement, 67 Is The New 55 http://t.co/mhK4dG7A fundamental shift is underway. Life expectancy is rising and as a result countries everywhere are raising the retirement age. A new life stage is emerging between midlife and retirement. In this new era conventional solutions will fall short. A new mindset to income protection is required.
The spirit is willing but the flesh is weak?Employer discrimination
U.S. workers plan to work longer in retirement http://ow.ly/4fRr775% of over 50’s expect to have jobs after they “retire” Huffington Post: Be inspired by people who contribute (and work) past the age of 90. http://tinyurl.com/4hppxen Americans Are Living Longer – Are You Planning Accordingly? -http://goo.gl/E5xn5
The New Life Stage Between Midlife and #Retirementhttp://bit.ly/hU2utdWhat'd you do this weekend? This 100-year-old went skydiving! http://j.mp/gU3ber““Rehirement” “Middlelesence”
Should we move this to speaker notes?
The perfect insurable risk
The perfect insurable risk
And this is not even taking tax deductibility into account