Elder Life Planning for Banks

1. Elder Life Planning for Banks A Comprehensive Approach to Establishing Stronger Customer Relationships and Increasing Sales Of Senior Market Financial Products in 2012 www.bank-marketing.org

2. Elder Life Planning for Banks • Community banks and credit unions throughout the U.S. are facing a marketplace that is experiencing fundamental and long lasting changes. Consolidation, competition from other financial services providers, and federal and state banking laws are forcing banks to change the way they do business. • Consumers changing the way they look at their bank. As mergers and acquisitions abound and banks seek to both, reduce costs and increase profit, customers are feeling alienated and even abandoned. www.bank-marketing.org

3. Elder Life Planning for Banks • Coincident to these changes is the rapid aging of America. Every seven to ten seconds someone turns fifty in America. Over the next fifteenn years the over fifty market will more than double. • Meanwhile the number of Americans under fifty will increase by only 1%. www.bank-marketing.org

4. Senior Markets Are Growing Rapidly The 25 to 40 Age Group Will Decline Steadily • Over the next 12 years (2012-2024) the over fifty market will increase by approximately 50%. • Those under fifty will increase by only 1%. • The current 50+ population is 80 million strong, and will grow to More than 100 million in just 5 years. • Every day 6,000 Americans turn 65. www.bank-marketing.org

5. People are living longer • Fastest growing segment of our population -people over 85 • At age 65, people can now expect to live 16-19 years longer • Today there are 40 million seniors, by 2030 there will be 70 million www.bank-marketing.org

6. HOW IMPORTANT IS THE AGING OF AMERICA TO BANKS? • Maturing consumers (aging baby boomers and older consumers) are the wealthiest; best educated and most sophisticated purchasers ofany age group. • Those over age 50 now control more than 70% of the total net worth of American households. • The data shows that discretionary income rises and reaches its peak in the fifty-five to sixty-four-age bracket

7. The Senior Market is Critical to BanksThe aging of America requires fundamental and continuous changes in how financial institutions interact with their customers.Consumers are scrutinizing products and services more closely than before. They are changing the way they look at their bank. Consolidations have left many customers feeling alienated and even abandoned. www.bank-marketing.org

8. Maturing consumers are now the most significant market for bank products and services. • Changes in the overall marketplace and the age of current and future customers will require that community banks that intend to stay competitive must develop fresh, innovative approaches to marketing, sales, product development and service delivery. • Banks must develop business and service delivery system strategies to respond to the changing needs of maturing consumers. Bank marketers must position their bank to take advantage of the coming changes that favor community banks with a knowledgeable, strategic, systematic and integrated approach to securing, serving and retaining maturing consumers. www.bank-marketing.org

9. Community Bank as Information Resource Center for Older Depositors and Caregivers • Develop financial strategy for managing costs • Personnel with in-depth knowledge of the catastrophic costs of long-term care. • Bank personnel as an information resource on financial issues such as Medicare, Medicare, Medicaid & Veteran’s benefits www.bank-marketing.org

10. Banks can take an active role in educating their maturing depositors • Otherwise the staggering costs of long term care will result in a steady stream of deposits leaving the bank to pay for home care, nursing homes and other expensive forms of care. • With the proper advice and assistance; significant savings in the costs of care can be achieved. www.bank-marketing.org

11. 3 significant market segments in the overall “Mature Market”. • GROUP 1. The 65+ market contains many who are living longer and healthier than ever before. They are more active and more affluent, than any previous generation of “elders”. At age 65, healthy people can now expect to live 16-19 additional years.  www.bank-marketing.org

12. GROUP 2: Age 85 + Blessed with more longevity this group more likely to face severe disabilities. • Likely to require daily assistance to stay at home, move to a retirement community or, in some cases to a nursing home. • Because long term or “custodial” care is expensive and not covered by Medicare, these costs can result in a significant drain on savings www.bank-marketing.org

13. Group 3:The 45 to 65-age group • Most of these folks are still working, and a significant percentage will continue to work well past the age of 65. They are not, as a group, as concerned about their own health and disability issues. They are very worried, however, about those in the first 2 groups, their parents and grandparents. www.bank-marketing.org

14. WHY GROUP 3 is WORRIED ABOUT GROUPS 1 & 2 ? • Eighty-five percent of the American work force expects to have some form of elder care responsibilities within the next 15 years. • 40% expect to take on elder caregiving responsibilities within the next 5 years. • There are 25 million caregivers in the US. • Over 60% of these caregivers have been providing care for more than 5 years. • More than 80% of caregiving is done at home. • 47% of caregivers are employed. • . www.bank-marketing.org

15. Small to Mid Size Banks Can Become the Trusted Community Resource On Aging Issues • A well thought out marketing plan combined with effective customer service training in elder care issues, will generate significant new revenues from the sale of long term care insurance and other senior market financial products and provide the bank with a competitive advantage. www.bank-marketing.org

16. To Be Dominant in the Changing Senior Market, Banks must Develop a Seamless Senior Market Strategy • Bank personnel at all levels need access to a knowledgeable, strategic, systematic and integrated approach to securing, serving and retaining maturing consumers • With an integrated marketing strategy, banks can dominate Insurance, Employee Benefits, Reverse Equity Mortgages & Retirement Planning Markets www.bank-marketing.org

17. Eldercare as Employee/Depositor Benefit…continued • Working women between the ages of 40 and 59 years old, are currently providing the bulk of the care giving. Most are married women with families of their own. • An estimated 44% of care giving daughters and 55% of care giving sons are employed • The majority of caregivers have been providing care for 1-4 years • 80% of family caregivers provide unpaid assistance seven days a week • Primary caregivers report spending between four and six hours a day in care giving duties

18. Eldercare as Employee/Depositor Benefit…continued • Studies by National Council on Aging, Fortis Investors, Metropolitan Life, and National Family Caregivers Association all document the serious cost of care giving to employers on productivity. • Costs conservatively estimated to be in the range of $29 to $33 Billion. • Costs to employers expected to grow dramatically in the next five years as care giving responsibilities grow steadily and labor force shrinks.

19. Extent of Elder Financial Abuse Today

20. Extent of Elder Financial Abuse 5 Years • Banks Should Be Leaders in the Elder Abuse Prevention Effort

21. Market for Eldercare as an Employee Benefit • See Following Slides

22. The Problem: millions of elderly and no place to put them • Preferred nursing homes waiting list -6 to 24 months • Millions of Americans live a great distance away from those needing care and are unfamiliar with regional resources • There is a severe shortage of adult, non-geriatric beds • Over the next 50 years, individuals available for employment as caregivers will decrease by nearly two-thirds

23. The Problem: there are many others who need care • Nearly 40% of those who require long-term care are 18-65 • Chronic conditions in non-elderly adults • MS/CP, Mental Illness and DD • early onset of Parkinson’s and Dementia • 9 million people, of all ages have disabilities so severe that they require personal assistants for care

24. The Problem: most people have no idea where to start • 70 % flunked a quiz about the facts of long term care • Nearly half of survey respondents have done little or no long term care planning • Service providers operate in a highly fragmented market • There is a complex web of laws, legal documents and tax regulations that govern the provision of care

25. Traditional most elder care is provided Response: by family members • There are 25 million caregivers in the US • Over 60% of these caregivers have been providing care for OVER 5 years • More than 80% of caregiving is done at home • 47% of caregivers are employed

26. Individual Impact: TIME • 61% of caregivers spend 40 hours or MORE each week providing care • 7 million people provide care to someone aged 55 or older living at least 1 hour away • Family caregivers are responsible for coordinating care including physician visits, transportation, monitoring medications, respite care workers etc.

27. Individual Impact: MONEY • -more Americans worry about paying for long term care than for retirement- • Neither Medicare, Medicare supplement or employers health insurance will pay for most long-term care • Yearly nursing home costs -$70,000 to 100,000 • Caregivers spend $24 billion annually of their own money • The cost of long term care could TRIPLE in the next 20 years

28. Individual Impact: STRESS • -caregivers say that their greatest needs are emotional support- • 58% of caregivers show symptoms of clinical depression • About 34% of caregivers say that they get no help from family or friends • Nearly 1 in 5 caregivers quit their jobs • Caregiving is extremely time intensive and often isolating

29. Employer Impact:LOST PRODUCTIVITY • The annual cost to employers for lost productivity resulting from elder care is estimated at more than $30 billion • Caregiving is emotionally and physically draining and often impacts the quality of an employees work • Eldercare can increase employee absenteeism and turnover • By 2005, over 35% of workers will be MORE concerned about caring for a parent than a child

30. Financial you need to be eitherOptions:very rich or very poor • Do nothing and hope for the best • Spend your savings down to the poverty level and then let the government pay your bills through welfare • Use your personal wealth and savings to pay all costs (self-insure) • Transfer the risk to an insurance company

31. Financial Solution:long term care insurance • -The number one reason we choose long term care insurance is to avoid becoming a burden to our spouse or children- • Preserve your dignity, independence, avoiding dependence on others • Protect your income and assets while preserving your financial security and retirement dreams • Assure access to the highest quality care in the setting of your choice

32. Personal confusion, stressOptions: and a very long wait • Hope someone else will assume responsibility for the problem • Devote countless hours to learning about available options and hope you make the right choices • Wait a long time for your preferred choices to become available and in the interim accept full responsibility for care • Accept options which were not your first or second choice

33. PersonalprofessionalSolution:case management • Comprehensive assessment of patient needs and care planning • Analysis of most appropriate service options available • On-going coordination of care provided and services received • Development of financial strategy for managing cost of care

34. The Solution:suitable and timely placement • Retirement housing • Home care • Assisted living • Adult day health care • A national network that will enable you to find services anywhere in the United States

35. The Solution: consulting and other services • Elder law assistance: updating wills, power of attorney, health care proxy, disability trusts • Money management and bill paying services by bonded accounting and book keeping specialists • Internet access for information and services • Reduce time filling out tax forms, bills and other paperwork

36. Typical What will it cost and howQuestions: can you help with placement • What are your fees? Fees paid are often less than the costs of lost time and travel • How can you help with placement? Our on-going professional relationship with the finest facilities can help • What happens after placement? We can continue to stay involved and help

37. Elder Life Planning:Peace of Mind • Professional case management including needs assessment and service options • On-going coordination of care and services • Suitable and timely placement • Special consulting services including elder law, account billing etc.

38. Elder Life Planning:Financial Protection • Develop financial strategy for managing costs • Applicability of third party sources • Suitability of financial alternatives including long term care insurance, reverse equity mortgages and life settlements • Money management and professional bill paying services

39. Elder Life Planning Creative Solutions for Working Caregivers Informed Eldercare Decisions, Inc. 1-800-375-0595 www.elderlifeplanning.com