FOR FINANCIAL ADVISOR USE ONLY/NOT FOR USE WITH THE PUBLIC

Transcription

1 The Quality of Life

2 Based within MIT s School of Engineering s Engineering Systems Division Challenges and opportunities of longevity Consumer behavior and decision-making Trends in demographics, technology, and lifestyles 2

3 Where do you begin? 3

4 Agenda Consumer preference 3 Questions Different planning process 4

5 Consumer preference 5

6 Consumer preference Current processes Data-heavy Unemotional Analytical models Focused on investments 6

7 Results Educating the Consumer Effectiveness Empathy Expertise Expertise 20% Empathy Personalization Retail Experience 18% Personalization 18% Trust 16% Educating the Consumer 10% Retail Experience 10% Trust Effectiveness 7% Source: MIT AgeLab, In Their Own Words February 2015

8 8

9 Who will change my light bulbs? How will I get an ice cream cone? Who will I have lunch with? 9

10 Who will change my light bulbs? 10

11 Largest Expense: Housing Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 11

12 Aging in home Home maintenance Home services Village movement Continuing Care Retirement Community 12

13 Top 10 Design Trends for Aging in Place 1. Level entry way 2. Live on one floor 3. Kitchen and bath improvements 4. Storage within easy reach 5. Appliances at comfortable heights 6. More drawers 7. Doors that go away 8. Lavatory designs invite an open knee space 9. Comfort- or right-height toilet seats 10. No-threshold showers Source: aginginplace.com, Top 10 Design Trends 13

14 Be the agenda-setter Cost Connector 14

15 How will I get an ice cream cone? 15

16 Largest Expense: Housing Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 16

17 Food Expense Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 17

18 Entertainment Expense Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 18

19 Cash Contribution Expense Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 19

20 20

21 Second Largest Expense: Transportation Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 21

22 Who will I have lunch with? 22

23 Fewer Caregivers Average Age Distribution Projections for 2010 by Five-Year Age Segment 65% 55% 45% 35% 25% 15% 5% -5% -15% % Growth in by Age Cohort Source: MIT AgeLab 23

24 Maintaining Your Social Network Women Quickly rebuild social networks Focus on friends & family Live longer Men Social network largely centered on work or activity-based Network will naturally dissipate sooner due to mortality Self-focused 24

25 Creating a Strong Social Network Visit a social center & participate in activities Join a group focused on physical activity or a hobby you enjoy Enroll in a course Join a gym Remain physically active Integrate younger people Volunteer 25

26 Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 26

27 Health Care Expense Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 27

28 Other Expenses Consumer Expenditures 65 Years and older Avg. Income: $45,100 Avg. Age: 74.2 Household size: 1.8 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2014 Most recent data available used. 28

29 Different Planning Process 29

30 Different Planning Process Investments then investors Investor then investments 30

31 Different Planning Process Quantity Quality Stocks Bonds Cash 31

32 Summary Consumer preference Personal agenda 3 Questions Engaging Different planning process Quantitative and Qualitative 32

33 Main Idea Effective planning must be about more than financial security. The new face of retirement planning must go beyond money, and adopt an integrated and holistic approach to helping people prepare to live longer and well. Dr. Joe Coughlin, MIT AgeLab 33

34 Next Steps Whitepaper hartfordfunds.com/3questions Worksheets Client and advisor worksheets at hartfordfunds.com/3questions Client event Ask your Hartford Funds Advisor Consultant about a Quality of Life client 34

35 At Hartford Funds, your investment satisfaction is our measure of success. That s why we use an approach we call human-centric investing that considers not only how the economy and stock market impact your investments, but also how societal influences, generational differences, and your stage of life shape you as an investor. Instead of cookie-cutter recommendations and generic goals, we think you deserve personalized advice from a financial advisor who understands your financial situation and can build a financial plan tailored to your needs. Delivering strong performance is always our top priority. But the numbers on the page are only half the story. The true test is whether or not an investment is performing to your expectations. All investments are subject to risk, including the loss of principal. Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling (retail) or (institutional). Investors should read them carefully before they invest. Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC. The MIT AgeLab is not an affiliate or subsidiary of Hartford Funds. All information and representations herein are as of 9/16, unless otherwise noted. REP_QOL_