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The Over-65s and Financial Services - UK - August 2017

Published By :

Mintel

Published Date : Aug 2017

Category :

Banking

No. of Pages : N/A

The over-65s have significant spending power and financial knowledge that they share with other family members. However, they are often overlooked by financial services providers, or marketed to via patronising representations of how life should be at this age. Recognising the diversity of financial needs among this age group is important if providers are to meet their needs effectively.
Table of contents

OVERVIEW
What you need to know
Report definition
EXECUTIVE SUMMARY
The market
Over-65s account for growing share of the population
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
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
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
Figure 4: Financial priorities, May 2017
Majority feel uncomfortable managing their finances online
Figure 5: Level of comfort managing and arranging finances online, May 2017
Three in four cant be convinced to use online methods
Figure 6: Actions to increase comfort levels with online methods for managing financial products, May 2017
Over half dont want to receive documents online
Figure 7: Receiving documents online, by internet usage, May 2017
One in five over-65s feel that finance marketing is patronising
Figure 8: Attitudes towards financial services providers and how they cater to older consumers, May 2017
Recognising the impact of financial decisions on family
Figure 9: Attitudes towards finances and family, May 2017
What we think
ISSUES AND INSIGHTS
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
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
A diverse group
Over-65s account for growing share of the population
Figure 10: Population of over-65s and the proportion of over-65s in the total population, mid-1971-mid-2015
Retirees in work
Figure 11: Current working situation, May 2017
Over-65s are in better financial position than younger age groups
Figure 12: How respondents would describe their financial situation, by age, June 2017
Retired households have seen income rise at a faster rate
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
Figure 14: Value of savings and investments, by age, October 2016
Number with no outstanding unsecured debt has risen
Figure 15: Amount owed on unsecured credit products, 2014-17
REGULATORY CONTEXT
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
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
Figure 16: Use of different retail banking channels, July 2016
Around half of over-65s use online methods to purchase insurance
Figure 17: Method of purchasing insurance policies, by age, September 2016
MARKET DEVELOPMENTS
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
Two in five have no financial priorities
Majority feel uncomfortable managing their finances online
Three in four cant 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
Two in five have no financial priorities
A quarter put helping their family financially first
Figure 18: Financial priorities, May 2017
Over a quarter still feel the need to save
with a need to build emergency savings
Figure 19: Financial priorities, by household income, May 2017
Financial priorities fall once people reach 65
Figure 20: Financial priorities, by age, May 2017
COMFORT WITH MANAGING FINANCES ONLINE
Majority feel uncomfortable managing their finances online
Figure 21: Level of comfort managing and arranging finances online, May 2017
Comfort levels vary by demographic status
Figure 22: Level of comfort managing and arranging finances online, by socio-economic status, May 2017
55-64s are generally comfortable online
Figure 23: Level of comfort managing and arranging finances online, by age, May 2017
ENCOURAGING THE USE OF ONLINE METHODS
Three in four cant be convinced
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
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
Figure 26: Actions to increase comfort levels with online methods for managing financial products, by age, May 2017
RECEIVING FINANCIAL DOCUMENTS ONLINE
Financial services providers look to cut down on paper statements
Over half dont want to receive documents online
Figure 27: Receiving documents online, by internet usage, May 2017
Insurance renewals lead the way in online documentation
ABs significantly happier receiving online documentation
Figure 28: Receiving documents online, by internet usage, by socio-economic group, May 2017
ATTITUDES TOWARDS THE TREATMENT OF OLDER CUSTOMERS
One in five think finance marketing is patronising
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
Figure 30: Attitudes towards financial services providers and how they cater to older consumers, by age, May 2017
OVER-65S AND FAMILY FINANCES
Role in family finances changes after age 75
Gaining support for financial decisions
Figure 31: Attitudes towards finances and family, May 2017
Receiving advice with family present offers reassurance
55-74-year-olds relied upon for advice
Figure 32: Attitudes towards finances and family, by age, May 2017
APPENDIX DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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