Brightskyclearmind.com BrightSky Mind Later life lending Technology, health and income Tony Crane
Brightskyclearmind.com
BrightSkyMind
Later life lending
Technology, health and income
Tony Crane
Brightskyclearmind.com
BrightSkyMind
07/10/2016 2
Legacy
• Repaid before retirement
• C&I
• BAU
• Technology led
Pension
• Lifetime credit
• Fluid repayment strategy
• Advice driven
2015 Summit – My home is my…
Brightskyclearmind.com
BrightSkyMind
2010
• Max ages c70
• ER - 6.25%
• Trackers – 3% HSBC
• 2yr fix – 3.69% Abbey
• 5yr fix – 5.74% Leeds
• IO drives discussion
2016
• Max age removed
• ER – 3.6%
• Trackers – 1.4% TSB
• 2yr fix – 1.48% HSBC
• 5yr fix – 2.25% Leeds
• Mortality & technology
07/10/2016 3
2010 – 2016 – The story so farData: WorldBank, Partnership, Moneysavingexpert
Brightskyclearmind.com
BrightSkyMind
2010
• Retirement age:• 65 men & 60 women
• Avg Pension – £29,100
• Lifetime limit - £1.8m
• House price – £166,210
• Avg salary - £25,900
• Life expectancy – 77
2016
• Retirement age:• 65 men & 63 women
• Avg Pension - £87,220
• Lifetime limit - £1m
• House price – £200,251
• Avg salary - £27,600
• Life expectancy - 81
07/10/2016 4
Data: WorldBank, Partnership, Moneysavingexpert
2010 – 2016 – The story so far
Brightskyclearmind.com
BrightSkyMind
07/10/2016 5
Consumer
Brightskyclearmind.com
BrightSkyMind
07/10/2016 6
Regulator
Brightskyclearmind.com
BrightSkyMind
07/10/2016 7
Regulator
Brightskyclearmind.com
BrightSkyMind
07/10/2016 8
Technology
Health
Income
Where next?
Brightskyclearmind.com
BrightSkyMind
07/10/2016 9
Technology
Increased capability extends life but reduces
income
Brightskyclearmind.com
BrightSkyMind
07/10/2016 10
Health
Healthy Male 65 Healthy female 65
Unhealthy male 65
New risks emerging
Brightskyclearmind.com
BrightSkyMind
07/10/2016 11
Stag
e4
–St
ate
relia
nt
Stage 3 – Asset reliant
Stage 2 – Income reliant
Stage 1 – Parental reliance
4 stages of financial reliance
Income
Retirement
Brightskyclearmind.com
BrightSkyMind
07/10/2016 12
Stage 2 – Income reliant
Stage 3 – Asset reliant
Limits: Pension £1m & property
100%
?% ?%
Brightskyclearmind.com
BrightSkyMind
07/10/2016 13
Summary
• Solution isn’t Equity Release
• Vulnerability risk are new to our market but understood elsewhere
• Advice is key and needs to be shaped
• Technology is an enabler in all areas
• Regulator is supportive and the door is wide open