Table of Contents
Executive Summary
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- The market
- Over-65s account for growing share of the population
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- Figure 1: Population of over-65s and the proportion of over-65s in the total population, mid-1971-mid-2015
- Over-65s are the most confident about health of their finances
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- Figure 2: How respondents would describe their financial situation, by age, June 2017
- Financial services industry looks to address needs of ageing population
- Three in four use online banking at least once a month
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- Figure 3: Use of different retail banking channels, July 2016
- Addressing the needs of more vulnerable customers
- The consumer
- Two in five have no financial priorities
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- Figure 4: Financial priorities, May 2017
- Majority feel uncomfortable managing their finances online
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- Figure 5: Level of comfort managing and arranging finances online, May 2017
- Three in four can’t be convinced to use online methods
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- Figure 6: Actions to increase comfort levels with online methods for managing financial products, May 2017
- Over half don’t want to receive documents online
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- Figure 7: Receiving documents online, by internet usage, May 2017
- One in five over-65s feel that finance marketing is patronising
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- Figure 8: Attitudes towards financial services providers and how they cater to older consumers, May 2017
- Recognising the impact of financial decisions on family
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- Figure 9: Attitudes towards finances and family, May 2017
- What we think
Issues and Insights
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- Older consumers still need to be shown the benefits of online services
- The facts
- The implications
- Taking a family-focused approach to wealth
- The facts
- The implications
- Make finances easy so people can focus on the important things in life
- The facts
- The implications
The Market – What You Need to Know
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- Over-65s account for growing share of the population…
- …and are the most confident about health of their finances
- Financial services industry looks to address needs of ageing population
- Three in four use online banking at least once a month
- Addressing the needs of more vulnerable customers
The Over-65s Consumer
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- A diverse group
- Over-65s account for growing share of the population
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- Figure 10: Population of over-65s and the proportion of over-65s in the total population, mid-1971-mid-2015
- Retirees in work
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- Figure 11: Current working situation, May 2017
- Over-65s are in better financial position than younger age groups
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- Figure 12: How respondents would describe their financial situation, by age, June 2017
- Retired households have seen income rise at a faster rate
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- Figure 13: Index of growth in household income, at 2015/16 prices, 1977-2015/16
- Over-65s’ wealth makes them a target for savings providers
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- Figure 14: Value of savings and investments, by age, October 2016
- Number with no outstanding unsecured debt has risen
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- Figure 15: Amount owed on unsecured credit products, 2014-17
Regulatory Context
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- FCA developing strategy for ageing population and financial services
- Financial Capability strategy for older people in retirement
- Pension Freedoms lead to change in consumer behaviour…
- …but few are taking advice
Accessing Financial Services
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- Over-65s reliant on in-branch counter services…
- …but three in four use online banking at least once a month
- Mobile banking services significantly less popular
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- Figure 16: Use of different retail banking channels, July 2016
- Around half of over-65s use online methods to purchase insurance
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- Figure 17: Method of purchasing insurance policies, by age, September 2016
Market Developments
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- Addressing the needs of vulnerable older customers
- Vulnerability Taskforce
- Nationwide offers a ‘Helping Hand’
- Banks focus on making it easier for carers to support
- Vulnerability training at Santander
- RBS and NatWest support customers with community services
- Addressing the issue of dementia
- Slowing things down
- Lending into retirement is a growing trend
- Raising maximum age lending limits
- Equity release hits £2 billion mark in 2016
- Brands move away from ‘old people’ image
- Saga wants older customers to ‘Keep doing’
- Just aims to guide people through decisions in retirement
- SunLife challenges stereotypes
The Consumer – What You Need to Know
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- Two in five have no financial priorities
- Majority feel uncomfortable managing their finances online
- Three in four can’t be convinced to use online methods
- One in five over-65s feel that finance marketing is patronising
- Role in family finances changes after age 75
Financial Priorities
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- Two in five have no financial priorities
- A quarter put helping their family financially first
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- Figure 18: Financial priorities, May 2017
- Over a quarter still feel the need to save…
- …with a need to build emergency savings
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- Figure 19: Financial priorities, by household income, May 2017
- Financial priorities fall once people reach 65
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- Figure 20: Financial priorities, by age, May 2017
Comfort with Managing Finances Online
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- Majority feel uncomfortable managing their finances online
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- Figure 21: Level of comfort managing and arranging finances online, May 2017
- Comfort levels vary by demographic status
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- Figure 22: Level of comfort managing and arranging finances online, by socio-economic status, May 2017
- 55-64s are generally comfortable online
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- Figure 23: Level of comfort managing and arranging finances online, by age, May 2017
Encouraging the Use of Online Methods
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- Three in four can’t be convinced
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- Figure 24: Actions to increase comfort levels with online methods for managing financial products, May 2017
- Biometrics could be the solution to security concerns
- Internet users know what will improve their experience
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- Figure 25: Actions to increase comfort levels with online methods for managing financial products, by internet usage, May 2017
- 55-64-year-olds more open to online methods
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- Figure 26: Actions to increase comfort levels with online methods for managing financial products, by age, May 2017
Receiving Financial Documents Online
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- Financial services providers look to cut down on paper statements
- Over half don’t want to receive documents online
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- Figure 27: Receiving documents online, by internet usage, May 2017
- Insurance renewals lead the way in online documentation
- ABs significantly happier receiving online documentation
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- Figure 28: Receiving documents online, by internet usage, by socio-economic group, May 2017
Attitudes towards the Treatment of Older Customers
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- One in five think finance marketing is patronising
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- Figure 29: Attitudes towards financial services providers and how they cater to older consumers, May 2017
- Only one in 10 think providers do enough to cater to older consumers
- 55-64-year-olds more likely to feel pressurised into managing their finances online
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- Figure 30: Attitudes towards financial services providers and how they cater to older consumers, by age, May 2017
Over-65s and Family Finances
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- Role in family finances changes after age 75
- Gaining support for financial decisions
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- Figure 31: Attitudes towards finances and family, May 2017
- Receiving advice with family present offers reassurance
- 55-74-year-olds relied upon for advice
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- Figure 32: Attitudes towards finances and family, by age, May 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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