The Longevity Effect

Anthea: from my perspective, the 20th century was built around accumulation. And the 21st century story may be more about allocation of capital, of care and of time, and we're entering an age where longevity isn't just a demographic fact, it's more of an economic force.

Ellen: What does that mean when the those that are 55 and older control an estimated $124 trillion in the US or 73% of total wealth is controlled just by those ages 55 and older?

Betsy: What we are looking at here is opportunities for asset managers and wealth managers to leverage their deep talents to address the needs of the population as longevity Unfolds

Lauren: The bottom line is at a time with so much uncertainty and one thing we are quite certain about as people are getting older and with that their real estate needs change. Whether that's housing—and you think about millennials needing more space boomers needing more services.

It's not just about Living longer. It's about staying mobile longer. It's about staying engaged longer.

Ensuring that we're engaged and productive for longer. But at the same time battling loneliness. Aging can get lonely.

Things that keep us connected and able to age in place for longer as well are things that the government can focus policies on. And so in that way, we can reshape what it means to live longer. From just “we’re living longer and that's going to be a greater burden on government debt via social welfare programs,” to instead, “we’re living longer, but we can also be productive for longer and we can retrain those sources into something else that helps us live those longer lives more fully.”

Senior housing is a very high conviction strategy for us. When you look. I mean, the first boomers turned 80 this year, so the silver tsunami is finally upon us and it is growing. So the 80 plus population growing at nearly 5% on the compound annual growth rate basis over the next five years, while the rest of the population dead flat. And so we see a real driver, a durable driver of demand beyond just the sheer number of potential target tenants for senior housing.

You essentially have a lot of people both with a lot of wealth and that means a lot of demand for senior housing and a high ability to pay.

When we look at bringing this down on the personal level, we used to live in more of a binary framework where you accumulated then you de-cumulated, right. And I think that what we're talking about here is beginning to blow up that kind of binary paradigm and really challenging people to think in chapters.

To think in phases and you know what we are, you know, need to be doing is modeling for clients things in more of a phased approach that's going to take different types of individuals that's going to take different types of conversations with Tools as you sort of think about modulating work and living in different evolutions.

Human beings are not averages. So the reality is, is, there's these trends. They're going in multiple directions. But when it comes down to an individual has their own history, has their own behaviors, has their own needs, and we're going to need to increasingly move away from generic insight into hyper personalized plans and scenario planning for individuals and families in an age where the possibilities have exploded and grandma and grandpa's playbook doesn't work anymore.