The Culture of Aging:
Financial Gerontology

Greig Woodring
Retired President & CEO
The Insurance Forum 2019
Tokyo, Japan
June 5, 2019

The World Is Getting Older2

Percentage of Population 60 Years of Age or OlderLess than 5%
5% to 9%10% to 14%
15% or greater

3The Distinct and Continuing Trend
The world is getting older

Percentage aged
60 years or older:
30% or more
10 to <30%<10%4

Population by Region
Percentage of population projected to be over age 6530252015105020102020
Sub-Saharan Africa

2030
Southern Asia

2040

2050

Latin AmericaEastern Asia

Source: Elizabeth Leahy Madsen. September 10, 2013. “For Fast Growing Countries, Should Aging be a Concern.
Planning for the Second Demographic Dividend”

2060
United States2070
Europe5% of Population Over 65 Years Old by Rank
Rank
123
4
56
7
8910

CountryJapan
Italy
Portugal
Germany
Finland
Bulgaria
GreeceSwedenLatviaCroatia% over 65 years old27
232221
21
2120
20
2020

Source: World Atlas April 25, 20176Select Median Ages by Country and Life Expectancies
Combined data for men and womenCountry

Median Age *Life Expectancy **Monaco (Oldest Median)

53.1

89.5

Japan

47.3

84.3

Hong Kong

44.4

84.1

European Union

42.9

79.6

Canada42.2

82.7

South Korea

41.8

82.6

United Kingdom

40.5

81

United States

38.1

79.7

China

37.4

76.6

•

*US Central Intelligence Agency 2017 Data•** World Population Review 2019 Data7

World Population Growth Rate Has Changed Dramatically

Many believe the projection
is overstated

There may never be more children
alive than are alive today8Ultimate global population will depend upon
the future course of fertility rates

Fertility rates have typically been grouped by economic level(least developed, lesser developed, more developed)

A stunning drop occurred during the past several decades,
for all economic classes

Many now believe the projections to be high9Birth Rate vs. Death Rate, 2016
Both the birth and death rate are given per 1,000 people of the country's population.
Countries which lie above the grey line have a greater birth than death rate, meaning the total population is increasing;those below the line have a declining population.

Whether births exceed deaths
determines if population isgrowing or shrinking

Fastest growth in Africa,
slowest in Europe

Source: World Bank

1010

Although Slow Moving,
Effects of Population Aging Are Forceful

Economic

SocialHealth andwellness

Population migration
causing political effects

11

Financial and Economic Considerations
A global retirement
income crisis

Deflation / economic stagnation

Generational conflict beginning to show signs of increase

Dependency ratios shifting dramatically

1970

10:1

2050

4:1

12

Health and Wellness Considerations
Not only are people living longer, they are living longer in good health

Nevertheless, strain will be placed upon caregiver sector:
robotics will need to take up much of the slack
Unfortunately little progress on treatment of Alzheimer’s

Multiple advances made by precision medicine techniques,
but will access be broad or narrow?

13

Further Implications of an Aging Society
Increasing need to educate elder populations in order that they continue
contributing socially and economically
Does society become resistant to change and slow to adapt?
Does innovation decrease? Do elderly withdraw from society, in part?

There will be clearly increasing needs for services and security

Population will become increasingly female

Families become chronologically attenuated14

Further Disruption: Life Extension“The first person who will live to be 150 years old is alive today”

Substantial research and money expended, are increasing

Goal: “age reversal”

Who will have access?

15

Life Insurance Implications of Aging Societies
Increased demand for service component to insurance offerings

Risks increase in last 25% of life, sometimes gradually, sometimes suddenly

May be increased emotional component to sales, ranging from fear
to pride in leaving financial legacy to the next generation

Expect more health and wellness benefits (living benefits)
and more female orientation

Life insurance industry should become more important and relevant16©2019 RGA. All rights reserved.
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