ILC-UK and the Actuarial Profession debate: Changing the perception of retirement. Supported by Swiss Re

Changing the Perceptionof Retirement

1 March 2012

This event is kindly supported by Swiss Re

Twitter - #retirementperception

Welcome

Baroness Sally GreengrossILC-UK



Professor Sarah VickerstaffUniversity of Kent


The ‘unavoidable obligation’ of working longer: do we want our

working lives extended?


The ‘unavoidable obligation’ of working longer: do we want our working lives extended?

Sarah Vickerstaff

On the threshold of a new era?

In an era of workforce ageing and increasing life expectancy working longer may be presented as an:

‘unavoidable obligation’ (Reday-Mulvey 2005: 195)

‘a fiscal and social imperative’ (PWC, 2010)

Or simply:

live longer work longer (OECD, 2006)

‘If only we could print more taxpayers’

Banx FT 26.3.09

Where we are now?

• UK has moved away from ‘mass fixed age retirement’ and we now have more individualised experiences of retirement (for example: Rees Jones et al 2010)

• More difficult to say when ‘retirement’ happens

• Survey data steers us towards health, finance, job security, marital status and caring responsibilities as the key determinants of retirement timing, but in the messy reality of domestic lives and relationships it is the interaction of such variables, which will determine actual outcomes

• Surveys leave a lot of behaviour unaccounted for: people in comparable situations don’t always behave the same way, i.e. ill-health is a major predictor of labour market withdrawal but still lots of people with health issues continue to work

• This suggests that dominant ‘push and pull’ models of retirement are less relevant?

Assumptions of the extending working life agenda

• Individuals are still choosing to retire too early

• Individuals are not planning and saving enough for their retirement

• Focus of policy action on persuading individuals to delay retirement, make more sensible decisions

• Employer action such as managing later careers, providing opportunities for downshifting, gradual retirement and bridge jobs will somehow organically appear

= the target for the agenda is presented as a de-gendered and individualised ‘adult worker’ in a benign employment situation (on the adult worker model see Lewis, 2007)

Insights from qualitative research

• Commissioned by Department for Work and Pensions – ‘Extending working lives’

• Interviews with 96 people, data on 57 couples • Based in three areas of Britain: Edinburgh, Nottingham and

Thanet• Sample selected on the basis of age (50-64), income, labour

market status, health and domestic circumstances• Time-line allowed for an insight into life-course of

respondents – suitable for examining process of retirement

Vickerstaff, S., Loretto, W., Billings, J., Brown, P., Mitton, L., Parkin, T. and White, P. (2008) Encouraging Labour Market Activity among 60-64 year olds, DWP Research Report No. 531. Available from: http://www.dwp.gov.uk/asd/asd5/rrs-index.asp

http://www.dwp.gov.uk/asd/asd5/rrs-index.asp

Do people want to work for longer?

• There is a conundrum in existing research on what older workers want

• In a range of surveys, those 50 + are found to hold positive views about work, and many express a willingness to consider extending their working lives or continuing to work after they have ‘retired’

• Qualitative interview or focus group–based research on the same theme reveals a much more qualified picture

Surveys• McNair and colleagues in 2003/2004 found

that ‘older people are strongly attached to work (though not always their current jobs)’ and that a high proportion said that they would consider some form of paid or unpaid work after formal retirement (McNair, 2006)

• In a recent survey conducted for EHRC ¾ of a sample of 1,494 individuals aged 50-75 said that they ‘were currently working because, among other things, they enjoyed their jobs’ and that ‘their work was worthwhile’ (Smeaton et al, 2009)

• Both surveys noted considerable variation among different occupational groups

Qualitative research

• Desire to extend working life seems much more qualified

• A focus group based study concluded that people seemed to sustain two conflicting models of retirement at the same time: one aspirational involving a vision of an active and fulfilling period of life after work the other much grimmer composed of an image of a time of decline and potential privation

‘Stopping work before ‘retirement age’ is usually seen as a bonus and – by extension – working beyond it is a penalty” (Hedges et al, 2009:2)

Choice and Planning

• Unexpected health events, including illness of partner or other family members

• Caring responsibilities: increasing importance of grand parenting for example

• Redundancy, ‘voluntary’ early retirement

• Combinations of circumstances:‘And so what encouraged you to kind of finish working completely?One was the state of health of my mother….Two was the stress at work for the money that you’re paid.’ (NS76Female)

• The language of ‘choice’ about labour market withdrawal flies in the face of what we know about how the employing organisation structures retirement options, access to training and flexible working opportunities, not to mention job satisfaction and motivation issues- how realistically might work be made more attractive?

Overview of attitudes : would consider working for longer or after retirement

• Strong gender differences: women give social reasons or need to keep busy

• Health pessimism• Preference for flexible work, part-time or short

contracts: ‘ a little part time job’• In a different job• Little sense of planning for this: fantasy jobs• Work needing to fit round other aspects of life

and not vice versa as had been the case during much of working life

• A common assumption is that people will work longer if they cannot afford to retire but this study shows that whilst finance is important it was only one factor in couple’s decision making.

• Major gender differences reflecting gendered work histories and experiences

Women who had worked below their capabilities were more likely to want to stop work early

Men who had worked for 40 years or more felt that they had done their bit

Once folk get to a certain age, they want to look at and do other things, I’m sure rather than the treadmill of work. I feel that after having done 30, 40 years of work, it’s a just rewards if you’re able to sit back and relax.(EMale)

• Domestic contexts far from static - again emphasises importance of viewing retirement as a process not an event

Highlights limitations to the notion of ‘retirement planning’

The social embeddedness of decisions

Couples• Decisions around retirement most often taken as a couple and very

heavily influenced by domestic contexts and work histories, some evidence of joint retirement timing

• For many women who had not pursued careers of their own their retirement trajectories were typically contingent on their male partner’s pathway. In particular, the male partner’s financial situation and health and wider family caring obligations were key factors in retirement timing

‘How much longer do you think you’ll work for ?

Heaven knows!

Do you have a date in mind? A year in mind?

I’d love to go tomorrow! But no, it all depends upon the pension, on Phil’s pension’ (NFemale)

• Relationships between couples may be changed by external shocks such as ill-health or redundancy, whilst in other couples such unanticipated events reinforce traditional ways of doing things, indicating how dynamic the factors affecting retirement are.

17

The gender contract

Health pessimism

• People understand that we are living longer but concerns over future health reinforced traditional ‘cliff-edge’ retirement:

So from our point of view, we just want to enjoy it [retirement] while we’ve both got health to do it. Because there’s so many people work right to the end of their retirement, you know, whether they’re 60 or 65, and never get a good retirement, you know, for health reasons, and, well, we feel we’re fortunate we can do it now and enjoy it. (EFemale)

Preference for part-time flexible work

The idea of part-time paid employment, that is something I certainly will consider. But nothing to do with teaching or education. Although teaching supply is very lucrative, it’s not something I could even… I couldn’t contemplate going back into the classroom.…But a wee part-time job for financial

remuneration, is quite likely. (EMale)

So I won’t be doing regular work but I won’t necessarily be stopping altogether. It’s just so that it enables us if we want to go on holidays for 6 weeks to Spain in term time we can go because we’ve got a caravan so we take it abroad so…(NFemale).

Realistic part-time aspirations?

I didn’t want to go back full-time. I would go back part-time perhaps. But then again it would have to be a very, very decent salary and short hours, and long holidays! (EFemale)

…but the thing is about any job that I would want, is I need the sort of job where I can say… I’m maybe just on the internet and looking at flights and things and “God, look at… I

could fly to so and so next week for that” and I’ll go and on the meantime you’re on the shift that they need you at B&Q or whatever… I would need to be able to say “oh I’m not coming in next week” and very few employers would give you that flexibility. (EMale)

If I could work one day a week and just take off when I wanted I would still work but I don’t think any companies would let me do that now. (NFemale)

The role of employers

• Employers provide information on pensions but not on other issues to do with continuing work or managing retirement

• Employers and employees may define ‘flexible’ work in quite different ways

• Everyone thinks gradual retirement is a good thing but not much of it happening

‘And they gave me a huge pension folder, if you like, telling me a whole load of stuff that you just don’t understand.’ Basically.’ (EMale)

Context for change

• The ‘unavoidable obligation’ to work longer if we live longer arrives at a time when prospects in the labour market for older people are worsening

• When ill health routes out of the labour market -important for a subsection of the older workforce – are being closed off

• When state pension ages are rising

• And when the value of pensions diminishing

Conclusions: the extending working life agenda

• Positive views about work from older workers but often less happy with current job

• Major differences between older workers

• Not much flexible work for older workers or gradual retirement is actually happening

• Job quality as well as flexibility is an important factor in extending working life

• Not much evidence so far that organisations are embracing more active age management

Conclusions: what we need to know

• Need a much more differentiated picture of the ‘older worker’ which reflects the long run effect of advantages and disadvantages across the life course, i.e. impact of class, gender and race

• Need a less individualised view of the older worker in the sense that most older workers are thinking about and making decisions about working and retirement in a specific domestic context

• Evidence that people are embracing the new orthodoxy of live longer work longer is scant: the factors affecting retirement timing will not be changed quickly

We need to situate older workers in complex temporal environments:

HealthFamily and

friends

Policy context

Organisational context

Nature of work

Motivation, capabilities,

skills

References• Hedges, A. Sykes, W. and Groom, C. (2009) Extending Working Life: Changing

the Culture DWP Research Report No. 557, London: HMSO

• Lewis, (2007) ‘Gender, Ageing and the ‘New Social Settlement’: The Importance of Delivering a Holistic Approach to Care Policies’ Current Sociology, 55, 271-286.

• McNair, S. (2006) ‘How Different is the Older Labour Market? Attitudes to Work and Retirement Among Older People in Britain’ Social Policy and Society, 5(4):485-94.

• OECD (2006) Live Longer, Work Longer, Paris: OECD.

• PricewaterhouseCoopers (2010) Working Longer, living Better: A Fiscal and Social Imperative PricewaterhouseCoopers.

• Reday-Mulvey, G. (2005) Working Beyond 60, Basingstoke: Palgrave Macmillan.

• I. Rees Jones, M. Leontowitsch and P. Higgs (2010) “The Experience of Retirement in Second Modernity: Generational Habitus among Retired Senior Managers’ Sociology, 44(1): 103-120.

• Smeaton, D., Vegeris, S. and Shain-Dikman, M. (2009) Older Workers: Employment Preferences, Barriers and Solutions Manchester: EHRC.

• S. Vickerstaff, W. Loretto, J. Billings, P. Brown, L. Mitton, T. Parkin and P. White (2008) Encouraging labour market activity among 60-64 year olds DWP RR531, London: HMSO

• S. Vickerstaff (2010) ‘The ‘Unavoidable Obligation’ of Extending Our Working Lives? Sociology Compass 4/10: 869-879.

Retirement in flux

David SinclairILC-UK



The International Longevity Centre-UK is an independent, non-partisan think-tank

dedicated to addressing issues of longevity, ageing and population change.

Retirement in fluxChanging perceptions of retirement and later life

David Sinclair, Assistant Director, Policy and Communications . ILC-UK



Contents

History of retirement

– Retirement is a relatively modern construct

Where are we now

– Retirement has grown to 20 years

The future of retirement

– Citizenship in retirement – What are our rights and

responsibilities?



What is retirement for?



Retirement is relatively new

For most of human history, most

people have worked – either

formally or informally – up to or

close to the point of death, due

simply to economic compulsion.

(Generally) pensions provision

precedes the emergence of

‘retirement’ as a specific and

substantive period of life.



Year Early Developments

1670s First organised pension scheme for Royal Navy officers.

1880s Otto von Bismarck’s government provided the first state pension in Germany

1909 Old Age Pension introduced on ‘Pensions Day’, 1 January 1909. Means-tested benefit available at age 70.

1921 The budget made tax relief available for occupational pension schemes. Limits on tax relief introduced in 1947.

1925 Introduction of a contributory state pension for manual workers and other low-income workers. Eligibility at 65.

1946 National Insurance Act established a contributory state pension available to all.



Pension system beginning to crack

1978 The State Earnings-Related Pension Scheme (SERPS) was introduced to provide a ‘top up’ to the state pension.

1980 Abolishment of the ‘earnings link’ 1990s Scandals in management of occupational pensions let to

new regulations

2000s The closure of ‘defined benefit’ occupational pension schemes accelerated,

2002 SERPS replaced with State Second Pension2003 Introduction of Pension Credit



Retirement today

Between 1881

and 2008 the

economic

activity rates of

UK men aged

65+ fell from

74 per cent to

10 per cent.



Retirement today

The average retirement age for men is 64.5 years, and for women 62.4 years (ONS)

Vast majority of people can expect to live for at least twenty years in retirement

Today’s pensioners benefit from a level of support from the state not available to previous generations – with many in receipt also of generous ‘defined benefit’ pensions from their employers.

http://www.flickr.com/photos/luc/6800884507/sizes/z/in/photostream/



Where are we now – The happy side

Recent upwards trend in

effective retirement ages

Staying in work for longer

has a positive well-being

effect for many people

Improved health in later

life means we have more

opportunities to enjoy

leisure pursuits



But it’s not all positive

Faltering growth and the end of generous pension provision, may create a compulsion to work for longer

Employment opportunities for older people appear to be concentrated in low-quality positions

Hierarchical workplace structures may have flattened, but older workers complain of their particular skills and experiences not being utilised and training not being offered.

‘Age-blindness’, a result of our success in challenging discrimination, is a positive development, but not if it disables employers from offering age-appropriate support to their older employees



An era of reform

2005 The Turner Commission: Work longer, poorer pensioners or pay more. Proposals: Reduce ‘qualifying years’ for a full basic state pension to 30; the introduction of ‘personal accounts’; increase in the SPA to 68 by 2046

2010 The government accelerated the increase in state pension age. It will reach 66 by 2020. In 2011, the government announced plans to increase state pension to 67 by 2028, almost a decade sooner than Turner.

2011 The coalition government announced plans for a single-tier state pension, abolishing the State Second Pension and set at a level higher than Pension Credit guarantee payments. Eligibility is likely to be based on residency rather than contribution records.



Challenges ahead

The increasing fiscal burden of an ageing society & the possibility

of intergenerational conflict as today’s taxpayers are asked to

fund the retirement of today’s retirees. Uncertainty over the nature and scale of social care funding Persistent disparity in life expectancy. The problem of isolation in ‘very old age’ due to the breakdown

of traditional families and neighbourhoods. Mobility and mental health problems associated with ‘very old

age’. The disruptive nature of technological development. The individualisation of the pensions system.



Citizenship in retirement

Citizenship implies that, in return

for recognising our duties such as

obeying the law and paying taxes,

we have certain entitlements.



Citizenship and pensions

UK pensions system has moved away from the notion of citizenship, and towards individualised provision

BUT - Citizen’s Pension is an attempt to overcome the complexity in the relationship between citizenship and retirement, while establishing a solid, universal state pension as the basis for private saving

http://www.flickr.com/photos/nickatkins/5888232320/



We have designed much of our public policy concerning older people according to an image of life after 65 that is now redundant. The old notion that after this milestone in your life, all you can expect is decline and dependence is hopelessly outdated. We must assume that older people will participate actively in society and in the workplace for longer and to the best of their ability.

But the principal responsibility for retirement saving must rest with the individual and not the state. The state can help support a culture of saving through fiscal measures and by ensuring the social security pension rewards rather than penalises savings. A more generous state pension with relaxed contribution rules that ensure more women receive an adequate income can help lay a solid foundation for the pension reforms that are due to begin next year. John Hutton 13th Feb 2012



What should we expect to contribute?

What kind of contributions

should people be making

in return for this support,

beyond paying taxes and,

presumably, National

Insurance contributions

during their working life?

http://www.flickr.com/photos/sammers05/3692360687/sizes/m/in/photostream/



Rights and responsibilities: Employment

Older citizens have a

responsibility to remain in the

labour market, where

possible, to enable skills

retention and minimise fiscal

burdens on taxpayers.

Older people should have a right

to support from employers,

and society more generally, to

enable longer working lives.

http://www.flickr.com/photos/kheelcenter/5279905182/sizes/m/in/photostream/



Rights and responsibilities: Employment

46 % would consider delaying retirement if their employer offered support for reducing their hours, or working more flexibly.

41% of men and 39% of women would consider delaying their retirement if they could defer their state pension entitlement in return for higher payments later.

43% of men and 41% of women would consider retiring later if they could combine income from their existing employer and an occupational pension.

Only 2% of men and 3% of women said that nothing would make them consider delaying retirement.



Rights and responsibilities: Volunteering

The idea of an obligation to volunteer is contradictory. Many older people are eager to volunteer in later life as part of an active retirement. Opportunities to volunteer must therefore be appropriate: flexible, fun, and oriented towards utilising the skills older people have developed during their working life.



More time for volunteering?

73 per cent of EU residents do not undertake any formal voluntary work.

Half report they would volunteer if they had the time.

72.8 per cent of working-age people plan to volunteer more in retirement

Fewer than a third (+55) report that they would volunteer more if they had more time.



Rights and responsibilities: Housing and care Older people should have a right

to remain in their own home. It is vital for the well-being of many older care recipients

But it is fair that older people draw upon property wealth to help fund care costs

http://www.flickr.com/photos/thousandshipz/4679235/sizes/m/in/photostream/



Citizenship at end of life

Do older citizens, in an ageing society,

have a right to have their lives prolonged

for as long as possible through intrusive

medical interventions – potentially at the

expense of treatments for people in ill-

health earlier in the life-course?

There is no easy solution but the

emphasis, we argue, should be on

improving rather than prolonging life.

http://www.flickr.com/photos/pentaxeric/3702092530/sizes/o/in/photostream/



Conclusions

Over 20 years we have gone from crisis

to crisis, slowly recognising that

longevity means we cant fund the

support in old age which we expect.

The crisis in care funding is emblematic

of the fact that the scale and design of

formal welfare and support services for

older people has not kept pace with

increasing longevity.

http://www.flickr.com/photos/dulcielee/6228005365/sizes/m/in/photostream/



There is a role for Government. We need national “retirement” strategies/policy incorporating all Government activities, not just DWP.

We must all difficult questions – “what is the point of retirement?”– What are the rights and responsibilities for old

age?– Can we debate rights and responsibilities

across the life-course? We must better recognise that retirement is a

process rather than an event.http://www.flickr.com/photos/jamelah/16144383/sizes/m/in/photostream/



And we must move quicker on gradual retirement ‘gradual retirement’ should

provide a potential solution to the challenges facing retirement.

The financial incentive structure must also be geared towards encouraging gradual retirement.

Employers must create and support opportunities for gradual retirement.



We need to abandon the notion that people make contributions in their working life in return for support in retirement, that is, that retirement marks the point where older people’s contributions are no longer necessary or valuable.

Continuing as a productive member of society in retirement is both a responsibility and a right.

We should expect older people to contribute to society in return for support in retirement – but equally, many older people are eager to contribute to society, and we need to ensure opportunities to make meaningful contributions are available.



Better Life

I am Richard and I am perfectly able-bodied thank you and also of perfectly sound mind. What can I do for you?

The chances are I know more than you about most things. I landed on Gold Beach on D-Day then worked as a brewer.

It was a useful life. Defending the realm, than making beer.Now I am waiting for my telephone to ring. It never does

ring.

Sir Andrew Motion (for the JRF)



Older Workers - trailer 1948

http://www.britishpathe.com/video/older-workers-trailer/query/people



Many thanks

David Sinclair

Head of Policy and Research

International Longevity Centre

[email protected]

02073400440

Twitter: @ilcuk and @sinclairda

mailto:[email protected]

Stephen BalchinDWP


Changing the perceptions of Retirement


Changing Perceptions of Retirement

Stephen Balchin

Redefining Retirement Division

Department for Work and Pensions

[email protected]

We’re Living Longer Healthier Lives

Life Expectancy, and Healthy Life Expectancy at 65, ONS

5

10

15

20

25

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007Female life expectancy Male life expectancyFemale healthy life expectancy, new basis Male healthy life expectancy, new basis

Female healthy life expectancy, old basis Male healthy life expectancy, old basis

Cohort life expectancy at 65 (England and Wales) 1848 to 2060 – Years

And life expectancy has been on the increase since 1900

0

5

10

15

20

25

30

18

48

18

61

18

74

18

87

19

00

19

13

19

26

19

39

19

52

19

65

19

78

19

91

20

04

20

17

20

30

20

43

20

56

Male Female

In 1900 a 65 year old would have about 11 years of life remaining, barely changed from 1850, by 2000 this had risen to about 20 and is forecast to reach about 26 by 2050

State pension introduced

Welfare state introduced

Lloyd George pension

1 in 4 children born today can expect to live to 100

Source: ONS

So why does it sound like there’s a problem?

Problem 1: Our conception of ‘old age’ is out of date

• We base assessment of likely health on our parents and grandparents• We have an – arbitrary - boundary of 60 or 65 as when we should retire• State Pension Age is by far the strongest anchor to when we expect to retire

Source: What can we learn from Retirement Expectation Data, IFS

Problem 2: Baby boomers mean we haven’t had to think about this too much

0%

10%

20%

30%

40%

50%

60%

70%

1941 1951 1961 1971 1981 1991 2001 2011 2021 2031 2041 2051

0%

10%

20%

30%

40%

50%

60%

70%

With baby boom With no baby boom

Old Age Dependency Ratio

Roughly 4 ‘working age’ to

1 over 65

Roughly 2 ‘working age’ to 1 over 65

So despite longer lives we’ve managed to work for less

Percentage of adult life spent in retirement

0

5

10

15

20

25

30

35

1950 1960 1970 1980 1990 1995 2000 2004

1950 67.2

1960 66.2

1970 65.4

1980 64.6

1990 63.5

1995 63.1

2000 63.3

2004 63.8

Male average age of exit from labour force

Problem 3: The ‘deal’ with the state, and with wider family networks continues to change

• Over the last 50 years state has taken more then less responsibility for earnings replacement as part of the pensions system.

• Family provides less care provision

• New social networks are rarely based on who lives next door.

Problem 4: We’re not very good at planning

0%

20%

40%

60%

80%

100%

0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48

Tenure (months)

No automatic enrolment Automatic enrolment

• Inertia – don’t do now what you can put off to tomorrow• We’d prefer to have things – holidays, new TV, new car - now• People avoid complexity and choose things they understand• We’re poor at understanding risk

Employees in a 401(k) pension scheme with and without automatic enrolment

And bad at planning impacts on more than finances,Are you planning to stay healthy into old age?

• …contradicts the common observation that muscle mass and strength decline as a function of aging alone.

• … declines may signal the effect of chronic disuse rather than muscle aging.

• … maintenance of muscle mass and strength may decrease or eliminate the falls, functional decline, and loss of independence that are commonly seen in aging adults.

Many caveats

Chronic Exercise Preserves Lean Muscle Mass in Masters AthletesAndrew P. Wroblewski, MBS, BS; Francesca Amati, MD, PhD; Mark A. Smiley, MBA, BS; Bret Goodpaster, PhD; and Vonda Wright, MD, MS

Problem 5: changing health needs

Better medicine means:• People survive with conditions which we’re previously fatal.• We can continue to function with conditions that used to be debilitating.

Better technology also means there’s more treatments out there – so more of a challenge to prioritise.

Some things are already changing: work and pensions

• People are working longer

• The Default Retirement Age is gone

• State Pension Age increasing

• Private Pension provision is heading to a world with many more Defined Contribution benefits and less Final Salary schemes.

• Auto-enrolment into occupational pensions starts this year

60

61

62

63

64

65

1984 1987 1990 1993 1996 1999 2002 2005 2008 2011

Men

Women

Average Age of Leaving the Labour Market

But what next?

Could be..

Employers:• More 50 year olds doing apprenticeships• Flexible working, and movement between types of jobs• Different approaches to sharing expertise

(Big) society:• Care banks• Local networks• Intergenerational work (volunteering in schools)

Individuals:• Individuals challenging assumptions that age should be important• More responsibility or opportunity for the life they want

Daniel Ryan Swiss Re


Changing the perception of retirement


Changing the perception of retirement

Daniel RyanHead Research & Development, Life & Health1 March 2012

Daniel Ryan | Changing the perception of retirement | 1 March 2012

Global ageing populationsShared perils and promises

73


Rapid growth expected for the oldest old

Source: Department of Work & Pensions, 2011

74


Trends in pensionable ages

Source: Pensions at a glance 2011, OECD

75


Retirement villagesYork, UK

Source: Hartrigg Oaks, Joseph Rowntree Foundation

76


Retirement villagesPerth, Australia

Source: Ocean Garden's Retirement Village, Perth, Australia. www..oceangardens.com.au and iStockphoto/Georgy Markov

77


But we are not saving enough for this long retirement

The average annual amount individuals would have to save in order to achieve a retirement income of 70% of salary (selected countries), EUR

Source: Aviva, 2010

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

United Kingdom

GermanyIreland France Spain Czech Republic

Poland Italy Turkey Hungary

78


Italy: The Manzo family of Sicily Food expenditure for one week: 214.36 Euros or $260.11

79


Germany: The Melander family of Bargteheide Food expenditure for one week: 375.39 Euros or $500.07

80


United States: The Revis family of North Carolina Food expenditure for one week $341.98

81


No Data <10% 10%–14% 15%–19% 20%–24% ≥25%

Obesity trends in US adults1990

Source: CDC

82


No Data <10% 10%–14% 15%–19% 20%–24% ≥25%


Source: CDC

83


No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%


Source: CDC

84


Old age eroding our physical capabilities

Hand grip strength reduces by 45% by age 75

Blood flow to brain reduces by 15-20% by age 70

Sense of smell reduces to 50% of peak by age 80

Maximum heart rate reduces by 15-20% by age 70

Blood pressure of 50% population at age 65 is mild or worse hypertension

Maximum breath capacity reduces by 40% by age 80

Dementia affects 10% of those over age 65; 20% of those over age 85

© 2010 The Actuarial Profession www.actuaries.org.uk

85


Source: The Koken Aged Simulation Set

Understanding the challenges of old age

86


Source: AHEAD, European Network of Economic Policy Research Institutes (2007)

Longer lives – implications for healthcareSurvivors and deceased in regional study in Italy


87


Collaborative study of WHO and International Federation of Medical Students' Associations

WHO intends healthy/active ageing and promotion of long term health to form education of all future young doctors

Promotion of life course in graduate training and later

41% of medical school curricula refer explicitly to geriatrics

GERIND index calculated by medical school and averaged across country –separation of geriatrics teaching and quality of ageing science being taught

Central hypothesis is that countries with higher percentage of older persons are more likely to have separate high-quality teaching on geriatric medicine – not always true


Teaching Geriatric in Medical Education study

88


Source: World Health Organisation

TeGeMe – GERIND index vs. age of population

89


Health systems must evolve in response to the ageing of society to optimise health across the full life course

Greater emphasis on prevention and public health

Moving from hospital, acute care and institutional care to community-based care

Shared responsibilities increase effectiveness and efficiency: individuals to be partners in own care

A co-ordinated continuum of care centred on patient, often with multiple diseases

Our target must be compression rather than expansion of morbidity

Putting individuals at the centre of healthcare

Source: WEF 2012: Global Aging: Peril or Promise?

90


A final word of thanksto our sponsors in retirement

91

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Changing the Perceptionof Retirement

1 March2012



ILC-UK and the Actuarial Profession debate: Changing the perception of retirement. Supported by Swiss Re

Economy & Finance

working life

retirement age

unpaid work

working lives interviews

formal retirement mcnair

flexible working opportunities

mass fixed age retirement

life agenda individuals