Table of Contents
Executive Summary
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- The market
- Increasing life expectancy makes later life planning more important
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- Figure 1: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
- One in five over-50s have no savings
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- Figure 2: Value of savings and investments, by age, June 2018
- Rising funeral costs make it more important to plan in advance
- Equity release sales soar
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- Figure 3: Sales of equity release products, by volume and value, 2011-17
- Future of the Pension Dashboard uncertain
- FCA’s Ageing Population report offers guidance to firms
- Companies and brands
- Encouraging conversations around later life
- 17% increase in later life financial planning adspend in 2017/18
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- Figure 4: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
- The consumer
- Most have thought about their later life financial plans
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- Figure 5: Consideration of later life financial plans, June 2018
- Half feel confident making plans
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- Figure 6: Confidence in making later life financial plans, June 2018
- 45% would seek out professional advice
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- Figure 7: Sources of information about later life financial planning, June 2018
- Most aren’t interested in later life products
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- Figure 8: Ownership and interest in later life financial products, June 2018
- Income concerns are a priority
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- Figure 9: Later life financial priorities, June 2018
- Majority want to live in their property for as long as possible
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- Figure 10: Expectations for future living arrangements, June 2018
- 52% think financial services providers should do more
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- Figure 11: Attitudes towards responsibilities for later life financial planning, June 2018
- Online platforms can make later life planning easier
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- Figure 12: Attitudes towards managing and arranging later life finances, June 2018
- Increasing life expectancy puts pressure on to plan
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- Figure 13: Attitudes towards working in retirement, June 2018
- What we think
Issues and Insights
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- Semi-retirement will delay later life planning
- The facts
- The implications
- Breaking the taboo around later life will encourage planning
- The facts
- The implications
The Market – What You Need to Know
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- Increasing life expectancy makes later life planning more important
- Rising funeral costs make it more important to plan in advance
- Equity release sales soar
- Future of the Pension Dashboard uncertain
- FCA’s Ageing Population paper offers guidance to firms
Market Environment
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- Increasing life expectancy makes later life planning more important
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- Figure 14: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
- One in five over-50s have no savings...
- …and future retirees could be even more worse off
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- Figure 15: Value of savings and investments, by age, June 2018
- Rising funeral costs make it more important to plan in advance
- Majority of long-term care provided at home
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- Figure 16: Number of over-65s receiving long-term care, 2015/16
- Equity release sales soar
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- Figure 17: Sales of equity release products, by volume and value, 2011-17
- Rising internet usage will change how people plan for later life
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- Figure 18: Percentage of people who had used the internet in the last 3 months, by age, 2011-18
Regulatory and Legislative Changes
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- Tax changes means couples set to pass on £1 million tax-free by 2020
- Future of the Pension Dashboard uncertain
- Reforms to Funeral Expenses Payment
- Funerals plans providers question need for FCA regulation
- CMA launches investigation into funerals
- FCA’s Ageing Population report offers guidance to firms
- Care for Older People green paper delayed
Companies and Brands – What You Need to Know
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- Encouraging conversations around later life
- 17% increase in later life financial planning adspend in 2017/18
Competitive Strategies
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- Encouraging conversations around later life
- Intergenerational focus can help with later life planning
- Lending into later life
Advertising and Marketing Activity
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- 17% increase in later life financial planning adspend in 2017/18
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- Figure 19: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
- SunLife is biggest spender on later life products
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- Figure 20: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, by advertiser, 2015/16-2017/18
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Most have thought about their later life financial plans
- Half feel confident making plans
- 45% would seek out professional advice
- Most aren’t interested in later life products
- Online platforms can make later life planning easier
- Increasing life expectancy puts pressure on to plan
Consideration of Later Life Financial Plans
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- Most have thought about their later life financial plans…
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- Figure 21: Consideration of later life financial plans, June 2018
- …but only two in five have taken action
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- Figure 22: Consideration of later life financial plans, by age, June 2018
Confidence in Making Later Life Financial Plans
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- Half feel confident making plans
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- Figure 23: Confidence in making later life financial plans, June 2018
- Lack of confidence puts people off planning
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- Figure 24: Confidence in making later life financial plans, by consideration of later life plans, June 2018
Source of Information on Later Life Planning
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- 45% would seek out professional advice
- Banks and building societies are an easy option
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- Figure 25: Sources of information about later life financial planning, June 2018
- Online guides and assessments can introduce people to later life planning
- People are reliant on recommendations from family and friends
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- Figure 26: Sources of information about later life financial planning, by age, June 2018
Ownership and Interest in Later Life Products
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- Most aren’t interested in later life products
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- Figure 27: Ownership and interest in later life financial products, June 2018
- 25% are interested in owning a prepaid funeral plan
- Changing attitudes mean providers can be more frank about later life planning
Later Life Financial Priorities
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- Income concerns are a priority
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- Figure 28: Later life financial priorities, June 2018
- Half want to ensure their will is up to date
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- Figure 29: Later life financial priorities, by age, June 2018
- 29% think it’s important to have money aside for long-term care costs
Future Living Arrangements
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- Majority want to live in their property for as long as possible
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- Figure 30: Expectations for future living arrangements, June 2018
- Only 9% expect to release equity
- A third of 50-57-year-olds expect to downsize
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- Figure 31: Expectations for future living arrangements, by age, June 2018
Responsibilities for Later Life Financial Planning
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- Two thirds think the government should do more…
- …but there’s still an expectation of financial services providers
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- Figure 32: Attitudes towards responsibilities for later life financial planning, June 2018
Managing Later Life Financial Plans
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- Online platforms can make later life planning easier
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- Figure 33: Attitudes towards managing and arranging later life finances, June 2018
- Low levels of interest in paid advice
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- Figure 34: Attitudes towards managing and arranging later life finances, by age, June 2018
Later Life Financial Planning and Retirement
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- Increasing life expectancy puts pressure on to plan
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- Figure 35: Attitudes towards working in retirement, June 2018
- 55% don’t know when to think about later life financial planning
- MPs propose care tax
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- Figure 36: Attitudes towards working in retirement, June 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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