Sanlam Limited · JSE:SLM
Sanlam — Sanlam Institutional Insights (2014)
25 slides from Sanlam's conference presentation, 2014
Slide 1: Challenges Trends Opportunities: Institutional Insights
Challenges Trends Opportunities Institutiona Insights © Saniam
Slide 2: #longevity trending globally
#longevity trending globally
Slide 3: Life expectancy
life expectancy + 20 years 2014 + 1.2 years per decade 1950 public medical nutrition health tech #longevity trending globally 3
Slide 4: Life expectancy
life expectancy 1.1Bn spending muscle social capital voting power 2014 2064 +6 #longevity trending globally 4
Slide 5: Grey tsunami
grey tsunami social fiscal economic demographic shift growing burden of the young growing vulnerability of the old #longevity trending globally 5
Slide 6: Assumptions
assumptions • understand changes • structure planning • respond in time retire? industry #longevity trending globally 6
Slide 7: Managing ageing
managing ageing • not intended to fail with age • ageing and health not hard-coded • hadn’t evolved for long term use • health / longevity are modifiable ageing random highly regulated development uncontrolled ability to manipulate #longevity trending globally 7
Slide 8: Managing ageing
managing ageing medical better technology pharmaceuticals $2.5Bn researching ageing per annum medical healthier practices lifestyles #longevity trending globally 8
Slide 9: Science fiction? FACT!
science fiction? FACT! #longevity trending globally 9
Slide 10: World Stem Cell Discovery Could Lead To Treatments
Worl Stem Cell Discovery Could Lead To Treatments From For Various Blood And Immune Disorders
Slide 11: Stem cells
stem cells Alzheimer’s cancer diabetes spinal chord injury osteoarthritis $2.8Bn researching investment per annum stroke rheumatoid burns arthritis cardiac heart disease repair USA CVD death every 34 seconds #longevity trending globally 11
Slide 12: Retirement?
medical nanotechnology ‘chromallocyte’ correct genetic medical extract chromosomes damage that nanorobot from diseased cell leads to ageing retirement? people living longer than we can insert first clinical reliably predict perform surgery on individual cells fresh cells treatment as early as 2020 #
Slide 13: ZA impact?
ZA impact? • bifurcated society • longevity not affected all • longevity boom? historical assumptions no longer apply living longer, healthier than predecessors without re-think … will run out of money #longevity trending globally 13
Slide 14: Longevity BOOM!
longevity BOOM! • currently life expectancy +/- 50 … would be 70 if not for HIV/Aids • ARVs started early … can prolong life to within 86% of HIV negative person • NHI impact #longevity trending globally 14
Slide 15: History lesson
history lesson Chancellor Otto von Bismarck 19th 20th 21st century century century increasingly 1881 obsolete? introduction of world’s 1st pension scheme retirement age 65 life expectancy 45 #longevity trending globally 15
Slide 16: Delay retirement
delay retirement longer working life mitigates longevity start retire retire saving another increases saving successfully earlier day … tax advantages longer reduce time in retirement #longevity trending globally 16
Slide 17: Maths: delay 6 years doubles nest egg
maths salary R300 000 contribution 13% retire retirement nest egg delay 6 years DOUBLES return 8% another day fund at 60 R1m salary inflation 7% #longevity trending globally 17
Slide 18: Maths: delay 10 years triples nest egg
maths salary R300 000 contribution 13% retire retirement nest egg 8% delay 10 years TRIPLES return another day fund at 60 R1m salary inflation 7% #longevity trending globally 18
Slide 19: Government intervention
government intervention encourage post continue in interest effect of early retirement bearing tax efficient retirement? alternative income savings vehicle age and conditions eliminate compulsion youth to withdraw unemployment? retirement savings #longevity trending globally 19
Slide 20: Government intervention
government intervention strategy to mitigate consider restructuring poverty in old age state pensions target 80-years ‘longevity backstop’ and above … greater benefits at older ages #longevity trending globally 20
Slide 21: Solutions needed
solutions needed deeper understanding of risks ? combination guaranteed income market exposure unit linked flexibility influencing decision makers #longevity trending globally 21
Slide 22: Further actions
further actions can be addressed on reconsider lengthen review defaults guaranteed investment investment structural and annuities horizon strategy professional levels #longevity trending globally 22
Slide 23: Shift happens
shift happens goalposts have shifted … still shifting … pressure to provide relevant solutions and structures … at the lowest sustainable cost fiduciary responsibility to influence real change #longevity trending globally 23
Slide 24: www.sanlambenchmark.co.za
www.sanlambenchmark.co.za
Slide 25: Wealthsmiths
© Sanlam Wealthsmiths”