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8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 2 2
Based within MIT’s School of Engineering
Systems Division
Challenges and opportunities of longevity
Consumer behavior and decision-making
Trends in demographics, technology, and
lifestyles
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
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“We have a longevity paradox. Now that we have achieved what humankind has tried to achieve since it has walked—living longer—we really don’t have a good idea of what to do with all that additional time.” —Dr. Joe Coughlin, Director of the MIT AgeLab
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 4
The Evolving Value of Advisors
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
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Agenda
8,000 Days
Four Phases of Retirement
Opportunity for Advisors
5 © 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 6
Life in 8,000 Day Segments
Source: 8,000 Days, MIT AgeLab, 2017
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 7
Jeanne Calment 122
Gertrude Baines 115 Kathrine Switzer 70
8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 8
A Good Shot of Living to 95 Chance one or both partners in an upper-middle-class couple age 65 survive to at least age 95
Source: You May Live Longer Than You Think. Here’s How to Afford It, Money, 2/17/17
8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 9
8,000 Days
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
The Traditional Retirement Story The New Retirement Story
10 10
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 11
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 12
Four Phases of Retirement
2. The Big
Decision Phase
1. The
Honeymoon Phase
3. Navigating Longevity
Phase 4.
The Solo Journey Phase
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 13
1. The Honeymoon Phase Managing ambiguity
The role of work
Income
Family dynamics
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
1. The Honeymoon Phase
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Source: Retirees are working in more hipster fields thanks to the gig economy, MarketWatch, 11/29/16
The Gig Economy % working gig jobs
Workers 55-74 Workers 25-54 Workers 16-24
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
1. The Honeymoon Phase
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Source: EBRI 2014 Retirement Confidence Survey, Pg. 29. Most recent data available used.
Reasons for Working in Retirement, Among Retirees Who Worked in Retirement
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
1. The Honeymoon Phase
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Family Dynamics More Financial Help from Parents to Adult Children than from Children to Aging Parents
28% of adult children provided financial help to
their aging parents (age 65 or older)
61% of parents provided financial help to their adult children (age 18
or older)
Source: Family Support in Graying Societies, Pew Research Center, 5/21/15. Most recent data available used.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
1. The Honeymoon Phase
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Pension Expectation vs. Pension Reality
Source: The 2017 Retirement Confidence Survey, Employee Benefit Research Institute, 3/21/17
54% of workers expect expect to receive benefits from a DB plan in retirement
39% of workers report that they and/or their spouse currently have such a benefit
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 18
2. The Big Decision Phase Where will you live?
Finding your purpose
Maintaining access to the things you enjoy
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
2. The Big Decision Phase
19
2. The Big Decision Phase
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
2. The Big Decision Phase
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Stay in my home Move in with family member
Upsize or downsize
50+ community Assisted living Continuing Care Retirement Community
(CCRC)
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
2. The Big Decision Phase
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Who will change my light bulbs?
How will I get an ice
cream cone?
Who will I have
lunch with?
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 22
3. Navigating Longevity Phase Managing health
Administrivia
Caregiving
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
3. Navigating Longevity Phase
23
What concerns people most about retirement? (by age)
Most recent available data used.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
3. Navigating Longevity Phase
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Administrivia
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
3. Navigating Longevity Phase
25
Arrange the medical appointments and transportation to the doctor or clinic
Order and pick up medications at the drugstore
Discuss the care plan and needs with the doctors and care managers
Handle a crisis or medical emergency
Fill the designated “on-call” position for the family member
Source: Caregiving Roles and Responsibilities, Science Care, 3/15. Most recent available data used.
Caregiver Responsibilities
Help to shop and buy groceries
Prepare meals, clean house or do laundry
Aid with transferring the recipient in and out of bed
Help with activities of daily living such as dressing, bathing, administering medications
Assist with physical therapy, injections, feeding tubes or other medical processes
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 26
4. The Solo Journey Living alone
Revisiting the first three phases
Maintain social network
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
4. The Solo Journey
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Over 65 and living alone1:
1Source: Current Population Survey, Annual Social and Economic Supplement, US Census Bureau, 2015. Most recent available data used. 2Source: U.S. Census Bureau, 2010. Most recent available data used. 3Source: Led By Baby Boomers, Divorce Rate Climbs for America’s 50+ Population, Pew Research Center, 3/17
36% of Women 20% men
Divorce rate of 50+ has doubled3 The average age of widowhood is 59 years old2
Living alone
Living with a spouse
Other
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 28
Revisiting the First Three Phases
Source: 8,000 Days, MIT AgeLab, 2017
4. The Solo Journey
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Four Phases of Retirement
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
4. The Solo Journey
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A one-point difference in social activity corresponded to a five-year difference in motor function
(including walking in a straight line, standing one-legged and on tiptoes, turning full circle without falling, and placing pegs on a board)
Source: In Old Age, Friends Can Keep You Young. Really. Time, 6/24/09. Most Recent data available.
Once a year or less
Several times a year
Several times a month
Several times a week
Almost every day
Social Activity Can Protect Against Age Related Decline Rush University Medical Center study of 906 seniors, average age 80
Those surveyed were asked how often they participated in social activities
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 30
https://getpocke
t.com/a/read/166
4280934
The Age You Peak at Everything
Source: Here are the ages you peak at everything throughout life, Business Insider, 3/16/17
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Opportunity for Advisors
31 © 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Opportunity for Advisors
32 32
How Much Will Retirement Cost?
What Will I Do in Retirement?
Vs.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Opportunity for Advisors
33
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Opportunity for Advisors
34
Retirement Mentorship Program
hartfordfunds.com/mentor
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
Opportunity for Advisors
35
8,000 Days client workbook MAI086
hartfordfunds.com/days
The Apps, Sites & Devices Changing the Way
We Age client workbook MAI063
hartfordfunds.com/tech
Quality of Life client worksheet MF944
hartfordfunds.com/quality
Resources
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
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8,000 Days A life stage waiting to be invented
Four Phases of Retirement A new framework
Opportunity for Advisors Retirement navigator
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
37
The Bottom Line
“The four retirements enable a clear vision to plan and to anticipate what is likely to come. Effective preparation can thereby reduce the stress of uncertainty and boost prolonged independence and control in the life so many wish to lead tomorrow.”
—Dr. Joe Coughlin, Coughlin Partners Director of the MIT AgeLab
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
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Next Steps
1. Get the 8,000 Days client white paper and workbook at hartfordfunds.com/days
2. See all MIT AgeLab resources at hartfordfunds.com/agelab
3. Checkout the Human-centric investing podcast on iTunes or Google Play Music
4. Contact your Hartford Funds advisor consultant about an 8,000 Day client event
8,000 Days client presentation
Client Resources
8,000 Days client workbook
8,000 Days client white paper
© 2017 by Hartford Funds. FOR FINANCIAL ADVISOR/INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION.
All investments are subject to risk, including the possible loss of principal.
Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus (if available), which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing. The information in this presentation is provided for informational purposes only. Hartford Mutual Funds may or may not be invested in the companies referenced herein; however, no endorsement of any product or service is being made. Hartford Funds is not associated with the entities referenced in this presentation.
Materials provided by Hartford Funds Distributors, LLC, Member FINRA.
The MIT AgeLab and Coughlin Partners are not affiliate s or subsidiaries of Hartford Funds.
All information and representations herein are as of 4/17, unless otherwise noted.
REP_8000 0817 202904
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.
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