Living to 100 by Clear

r e i t 3 n o r f w e n The itself... e m i is t

Living to 100 Throughout history, people have investigated the limits of the possible. As societies have developed and expanded, new frontiers have been encountered, contemplated and explored. From the opening up of the Spice Routes to the Industrial Revolution, the globalisation of the 20th century to the ever-changing technologies of today, these previously unexplored territories have presented challenges but also great possibilities for those willing to take advantage of them.

A dramatic increase in life expectancy across the globe presents major opportunities for brands and businesses – a new market that can drive serious growth into the future.

This matters right now because:

>> In developed markets, life expectancy increases by 6 hours every single day1. >> The majority of children born today will live to the age of 100 or more2. 1 / C olin Blakemore, MRC Chief Executi ve at a Royal Institution Lecture 2010 2 / Christensen, Dulhammer, Rau and Vaupal, Lancet 2009

1. Already this

>> This represents a 25% increase in the duration of our lives; that’s 25% more time to eat, drink, read, communicate, travel, socialise – the possibilities are endless. It represents enormous potential for almost every business.

2. This population

is only going to get represents a huge bigger, and as life II W -W st po e th t; ke ar m expectancy increases, d te ar st s er om bo baby the potential qualifying for their market grows in pensions this year! tandem with it.

>> By 2030 there will be 1.2 billion people over the age of 60 worldwide3. >> They have the money: over 80% of wealth in Britain is held by the over-50s 4. 3 / C olin Blakemore, MRC Chief Executi ve at a Royal Institution Lecture 2009 4 / P at McFadden, MP, BIS: 80% of nationa l wealth and 40% of annual consumer spendin g is accounted for by people over the age of 50

3. Actions taken

today make a real difference: studies show that our quality of life in later years is significantly influenced by choices taken decades earlier.

Clear has conducted the first major international study of the impact of living to 100. Using qualitative and quantitative research, we have explored the implications across China, the United States, the UK and the Netherlands, interviewing more than 3,000 people to identify key attitudes, insights and opportunities. Now, the new frontier is time itself.

One lifestage at a time.. people tend to look to the near future only

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n u y l i m a f r e wid than the individual rather

Cons u donâ&#x20AC;&#x2122;t mers have a

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A healthy mind is at least

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The Big Insights

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Help Me Imagine

Work With Me

We struggle to imagine our own futures. Today’s youth are somewhat oblivious, with only 2% of 16-24 year olds believing that they will live to be 100, but current forecasts suggest that almost half of them will do so1. Most people still expect to retire at the same age as their parents, when the reality is likely to be very different.

There is a huge gap between people’s words and their actions when it comes to employing the elderly. In Britain, 8 out of 10 people believe that older people have a lot to contribute through their wisdom and experience6, yet up to half of those who retire before the age of 65 say they were forced out of their job7. But it’s our loss.

Governments are reluctant to discuss these changes because of the political sensitivities involved. Without guidance, people lose sight of the long-term picture.

The UK Government estimates that ageism in the workplace may cost as much as £31 billion a year in lost GDP8.

In fact, almost half of all adults only ever contemplate one life stage ahead2. But where politicians fear to tread, there are opportunities for brands to create compelling and inspiring visions of the future, informing consumers, helping them to take control of their destinies.

Making it Easy We aren’t preparing ourselves adequately for a longer life. We know it too: half of us worry that we’re not providing enough for our long-term futures 3. And while more than two-thirds of people are willing to make sacrifices today for their future45, most of them don’t do so. Why is this? Well perhaps because it’s confusing, complicated and uncertain.

An astonishing 62% of people in the UK say that they have no idea how much money they will need in retirement. “I don’t know what I would do if I suddenly needed a big operation like a heart bypass”. Pension companies can show what your income is likely to be, but make no predictions about your necessary outgoings. Planning for the future is based on the needs of today, not those of tomorrow.

At a time when the West is, in theory, shifting to a knowledge-based economy, the education, insight and experiences of many older people are being squandered.

And what’s worse is the elderly actually want to participate in the labour market, with 73% of Americans expecting to actively work after retirement9. We know that the elderly want to work, we need them to work and they undeniably have a lot to contribute. So it’s time to reconsider our careers: how we work and for how long. Don’t worry, it doesn’t mean a future of working until we drop; the good news is that some academics believe that flexible working practices mean that “the average amount of work per year of life could stay about the same as it is at present”10. All of this suggests that there are tidy profits to be made by enlightened companies that can reorganise current practices to access the untapped wisdom of the elders!

62% of people in the UK do not know how much they need to save for retirement

Saving lacks the instant gratification of spending but can deliver comfort and security to the individual. A prosperous future awaits companies that can truly join forces with their customers to provide them with guidance, transparency and support in this area, and a real incentive to plan for their future.

1 / S ome countries are confronting the implications of this more than others: ‘Taking into account your health and the age your parents and grandparents lived to, what age do you expect to live to?’ 2% of 16-24 years olds believe they will live to 100 or older; 5% of American 16-24 year olds and 2% of NL 16-24 year olds. Life expectancy increases by 4 months per year. Current average life expectancy in developed markets is around 80, according to CIA Fact book 2009 and the UN. If trends continue, in 60 years’ time the average 80 year old could expect to live to 95. 2 / Top two box agreement that ‘When I do plan for the future it’s about the next lifestage on for me, not the longer term’: 41% UK; 35% US; 49% NL – Clear study 2010. 3 / 49% of people in the USA; 43% of people in the UK; but just 16% in NL. 4 / ‘I am not prepared to make sacrifices today for something that I may or may not benefit from in the future’: 30% UK; 25% US; 40% NL. Less than 25% of people believe that the state will look after them in later years – this decreases to just 10% in the US. 5 / T his picture is very different in China, where people are more aware of the challenges and needs of older life stages – many people live in extended family settings with older generations, making old-age more familiar. An example of this more ‘collective’ perspective on aging can be seen in saving behaviour in China. It is typical for working adults to save 30-40% of their salary for the future, but these savings are for the wider family unit rather than the individual.

6 / ‘Older people have a lot to contribute through their wisdom and experience’: 79% UK; 87% USA; 72% NL. 7 / A 2002 survey found that 50% of men and 40% of women who retire before State Pension age say they were ‘forced’ out of work. Humphrey, A. et al. (2003) ‘Factors affecting the labour market participation of older workers’. Department for Work and Pensions Research Report No 200 in Building a Society for All Ages, Secretary for State for Work and Pensions, July 2009. 8 / Together the drop in work rates among men over 50 and ageism in the workplace is estimated to have cost the economy between £16 billion and £31 billion per year in lost GDP. Cabinet Office (2000) Winning the Generation Game. Employers’ Forum on Age (2001). Ageism too costly to ignore. Age Concern England (2004) The Economic Contribution of Older People- in Building a Society for All Ages, Secretary for State for Work and Pensions, July 2009. 9 / Clear Study 2010: 50% in UK and 47% in NL. 10 / Christensen, Dulhammer, Rau and Vaupal - Lancet 2009.

A Long Life AND a Good Life Understandably, quality of life – not quantity – is what people care about most: two out of three people only want to live longer if they are happy with their quality of life1.

“Only if it’s sociable and fun...not if it’s sitting in a chair all day with a blanket wrapped around my legs”…“it’s not about living longer at any cost”. Businesses that focus on maintaining and enhancing this quality of life in old age are the ones that will thrive in this market. And quality of life is not just a matter a health; it’s strongly influenced by how people feel about themselves too. There are opportunities for clothing, cosmetic and beauty companies, just as there are for the technology, drug and food industries.

We All Just Want to Have Fun Contrary to stereotypes, old age is not a slow fade into oblivion! According to forecasts, these extra years are likely to be healthy ones, and most people look forward to a retirement of fun, passion and discovery2. But historically speaking, consumer marketing has focused on the young. Companies that can understand the over-60s, that are capable of anticipating and catering to their needs, providing appropriate entertainment, travel and communication experiences, will be the ones that can maximise their share of this valuable senior market.

By 2030 there will be more than

1.2 bn people aged over 60

73% of Americans expect to work after retirement

1 / ‘I would only want to live longer if I could be guaranteed a decent quality of life’: 70% in UK; 67% US; 66% NL. 2 / ‘I expect to enjoy old age. I don’t fear it’: UK 55%; US 65%; NL 70%. ’I expect to actively participate in hobbies or interests in my later years’: UK 83%; US 90%; NL 76%.

Match the Mindset We have found some very different perspectives on the idea of living to 100, with four key mindsets emerging. Designing products and experiences to target these attitudes will help brands to connect with people more powerfully.

HARD REALIT Y

MAKING THE MOST

HERE AND NOW LIVING FOR TODAY

People who are engaged and enlightened about the realities of living longer and ageing, but who are also motivated by the prospect of an active rather than a leisurely retirement tend to be older people with higher incomes who can be characterised by their sense of responsibility.

“Once you stop challenging yourself there is nothing to live for”. We see stronger representation of this in the West than in China.

People who are as informed about the realities of living longer and ageing as the first group, but who are strongly motivated by the prospect of an easier life in retirement. Their focus therefore is on making the most of the assets they already have (for example,

downsizing the family home, etc.). These also tend to be older people, but this mindset is less strongly correlated with higher incomes. While this attitude is the norm in China, it is also very prevalent in the West.

People who are far less engaged with the realities of living longer and ageing, but are motivated by the prospect of staying active and achieving rather than ‘working to live’. These consumers are often at the family stage of life.

While they are driven to achieve, their primary focus in the here and now is on the well-being of their children and family.

Also far less engaged with the realities of living longer and ageing, these people are nevertheless strongly motivated by the idea of an easier life after retirement. These tend to be our youngest people, currently focused on making the most of their youth, expressing themselves and

experiencing the freedoms of pre-family life. Very few of them are able to see beyond the immediate future with any sense of clarity.

How to win with them Provide tool s and ser vices that empower them by giving them control. Create new working practices and environments to maximise their ambitions and experiences. Travel is a big focus for them.

How to win with them Provide flexibility and inspiration.

How to win with them Educate and inform them about what their personal future is likely to be and what this means for them and their family. Make it personal and intuitive.

How to win with them Paint a vivid picture of the future and how today’s choices can shape it. Make it enjoyable and simple to plan and act.

Redefine Simplify Inspire Enable The 4 Big Opportunities for Brands & Businesses

Redefine ageing

If we approach ageing from a positive and proactive perspective, we can bring a new identity to retirement and a sense of purpose to this later phase of life.

What this could mean for:

Healthcare >> Building products and brands that help to maintain and enhance quality of life. >> Positioning and communication that focuses on products with fewer side-effects. >> Greater demand for products and services that help in managing dementia – could it be the new cancer? >> Global hospice services and brands.

Why is it a big opportunity? >> As we have seen, 80% of national wealth and 40% of annual consumer spending is currently accounted for by people over the age of 501. This market will continue to grow, strengthening the influence and potential of this section of society. >> 73% of Americans expect to work after retirement. >> In 1999 the working population amounted to 47.8% of the total UK population. By 2030 it will be 44.5%, a potential shortfall of two million workers2. >> Consumers are adamant that they would change their behaviour if they knew that their health was at serious risk. The opportunity for pro-active health services is almost limitless in a world in which the effects of our inherited genes and the impact of our lifestyles and environments become clearer every day. >> “Very long lives are not the distant privilege of remote future generations – very long lives are the probable destiny of most people alive now in developed countries 3.” >> We need to re-imagine the traditional role and style of old people’s homes. In the United States today one million people live in retirement villages 4. Voluntary clubs and associations that promote choice and independence and that are reflective of the realities of older people’s lives now may be a better model for the future.

Technology >> Networked wisdom – applications that enable people to make more use of their experience and insight by sharing it at the right place and time. >> Communication experiences targeting the elderly – combinations of services and recognition of their needs.

FMCG >> Food and drink that helps people to maintain and proactively manage their health. Going beyond cholesterol into mental stimulation. >> Similar breakthroughs in old-age skincare management.

Financial Services >> Introducing the Life Mortgage – take a 10-year holiday now, pay it off over the next 40 years.

Government and Society >> Changes in employment law to encourage more flexible working hours and part-time working. >> Inter-generational job shares. >> Reinvention of the pension incentive and a shift in state pension age. >> A Grey Party – government of the pensioners, for the pensioners by the pensioners.

1 / P at McFadden, MP, BIS. 2 / BBC News (Source: Government Actuary’s Department) 3 / Christensen, Dulhammer, Rau and Vaupal - Lancet 2009 4 / A Golden Age, Times Retirement Supplement 21.02.10

Simplify living to 100

There is a big opportunity to simplify the process of planning and living to 100.

What this could mean for:

Healthcare >> Stepwise health plans. >> Holistic MOTs that combine intuitive health and wealth assessments and forecasts. Help people to see and imagine what their future quality of life is projected to look like. Think Honey, We’re Killing the Kids – think geneticallybased BUPA MOT and IFA assessment all in one. >> A chain of specialist geriatric care health clinics with tied insurance products to facilitate access.

Why is it a big opportunity? >> Only 10% of people over the age of 75 and 35% of those over 65 are connected to the internet and know how to use it1. >> People don’t trust pensions! Many have seen their savings eroded by the economic downturn (with the exception of the public sector). In China pensions are rare; instead people invest in stocks and shares. There is a great need for impartial advice. People have little awareness of how to plan their financial future. Very few people know how much they will need and what their costs will be down the line. They have no idea of what they should be saving per month to ensure a secure future. >> 49% of people in the USA and 43% of people in the UK are worried that they haven’t saved enough for their future.

Financial Services >> Services that offer a transparent and intelligible forecast of the cost of living. >> Passing it on – Inheritable rewards points.

Technology >> Products designed by occupational therapists. >> Simplified, stripped-out products without all the bells and whistles.

FMCG >> Washing and bathing products that make it easier to clean elderly bodies. >> Beauty and cosmetics specially created for over-60s’ skin.

1 / (http://www.ofcom.org.uk/advice/media_literacy/medlitpub/medlitpubrss/ml_adult08/ Building a Society for All Ages, Secretary for State for Work and Pensions, July 2009.

3| Inspire People with the

Potential of Living to 100

There is a big opportunity to create exciting and life-affirming ideas that help the older population to live richer, more enjoyable lives.

What this could mean for:

Healthcare >> Make 90 the new 60. Plastic surgery for people aged 80+. Mainstream specialised clinics for the bits that go wrong! >> Combined health spas and medical clinics that target the over-60s. >> OTC products and nutraceuticals that help keep deterioration at bay. >> Shoe design to aid posture and help avoid the onset of future back problems.

Why is it a big opportunity?

Technology

>> Only 2% of 16 to 24 year olds believe that they will live to be 100, and yet forecasts suggest that almost half of them will1. Most people still expect to retire at about the same age as their parents did.

>> Gaming products for the elderly that enable a wider community to easily connect and play – global bridge tournaments!

>> Almost half of all adults only consider the future one life stage ahead2.

>> Role for home-based hobbies and socialising – social networking sites/audio books, virtual ‘walk around the block’ games.

>> Today’s children will enjoy living 25% longer – that’s 25% more life to be lived!

>> New magazine and media content through targeted TV, radio and web channels.

>> Disability-free life expectancy is called Healthy Life Years – these are rising in parallel with life expectancy.

Government and Society >> Gardening Co-op (most elderly people can see themselves gardening to stay active and fit). Monetising this could be considered. >> Designing homes of the future around the needs of a less mobile generation, while still providing them with independence. >> New communities where the elderly are encouraged to play an active role in childcare, education, etc. >> Specialised job sites and centres for retirees, giving advice on suitable jobs or ways to turn hobbies into businesses. >> Help me to give back – volunteer/charity tax-credits. The more you volunteer, the less tax you pay on any income you receive when you are over retirement age. >> Provide new places and spaces – pubs, libraries, community centres designed for older people with specific services –audio books, fast track services, etc.

1 / S ome countries are confronting the implications of this more than others: Taking into account your health and the age your parents and grandparents lived to, what age do you expect to live to? 2% of 16-24 years olds believe they will live to 100 or older; 5% of American 16-24 year olds and 2% of NL 16-24 year olds. Life expectancy increases by 4 months per year. Current average life expectancy in developed markets is around 80 according to the CIA Fact book 2009 and the UN. In 60 years’ time the average 80 year old could expect to live to 95 if trends continue. 2 / Top two box agreement that when I do plan for the future it’s about the next life-stage on for me, not the longer term: 41% UK; 35% US; 49% NL – Clear study 2010.

4| Enable People to Achieve More When Living to 100

There is a big opportunity in making the ageing process easier by simply providing the products and services that enable older people to live fuller lives and maintain their status as productive members of society.

What this could mean for:

Healthcare >> At-home diagnostics and remote monitoring.

Financial Services >> A bank for elderly entrepreneurs. >> SME banking is a strong theme in China – helping the individual borrow money where currently entrepreneurship relies on personal savings.

FMCG >> Packaging that is – in reality! – easy to open. Why is it a big opportunity?

>> Food and drink that takes care of the mind: from gingko to chicken essence.

>> Not just an indispensable part of the family unit, the role of grandparents in informal childcare has been valued at £3.9 billion each year1.

>> Household cleaning products that maintain cleanliness for longer.

>> An estimated 5,000 new businesses start life in a garden shed or at a kitchen table every week and an increasing number of those are by people aged over 50 years2.

>> Growth in pet care and associated training services – companions for old age.

>> The over-65s own £1.1 trillion of housing equity in the UK (a quarter of the value of the housing market)3.

Leisure, Government and Society

>> Over-65s account for around a third of all those carers providing more than 50 hours of care a week4. >> Jitterbug is a mobile phone and network provider that has targeted the baby boomer generation with easier to use products and customer service – they have grown from 4 to over 500 staff in just four years. >> Social lives unravel over time, provoking significant fears of being lonely or alienated. In western culture in particular it is important to maintain social ties because they are ‘an investment in the future’. Companionship will be extremely important in our later years but will perhaps take on a new definition.

>> New methods of researching ideas with the elderly.

>> Estate agents for the over-50s. >> Increased investment in initiatives and regulations to tackle factors that add to the cost of old age: obesity, smoking, lack of exercise, processed foods. Opportunities for private companies to provide services in these areas. >> New ways to fit exercise into daily regime – aqua aerobics, building on the Wii Fit – virtual exercise, etc. >> Second Life employment agencies, serving only the over-50s. >> University campuses designed for the comfort and needs of the over-60s.

1 / C abinet office and Department for Children, Schools and Families in Building a Society for All Ages, Secretary for State for Work and Pensions, July 2009. 2 / Jam Today…, Times Retirement Supplement, 21.02.10. 3 / Richard Donnell, head of property analysts, Hometrack, Permanent Vacation, Times Retirement Supplement, 21.02.10. 4 / ONS, 2001 in Building a Society For All Ages, Secretary for State for Work and Pensions, July 2009.

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