brightsky mind - thefsforum.co.uk€¦ · 10/07/2016 · technology, health and income tony crane....

Brightskyclearmind.com

BrightSkyMind

Later life lending

Technology, health and income

Tony Crane


BrightSkyMind

07/10/2016 2

Legacy

• Repaid before retirement

• C&I

• BAU

• Technology led

Pension

• Lifetime credit

• Fluid repayment strategy

• Advice driven

2015 Summit – My home is my…


BrightSkyMind

2010

• Max ages c70

• ER - 6.25%

• Trackers – 3% HSBC

• 2yr fix – 3.69% Abbey

• 5yr fix – 5.74% Leeds

• IO drives discussion

2016

• Max age removed

• ER – 3.6%

• Trackers – 1.4% TSB

• 2yr fix – 1.48% HSBC

• 5yr fix – 2.25% Leeds

• Mortality & technology

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2010 – 2016 – The story so farData: WorldBank, Partnership, Moneysavingexpert


BrightSkyMind

2010

• Retirement age:• 65 men & 60 women

• Avg Pension – £29,100

• Lifetime limit - £1.8m

• House price – £166,210

• Avg salary - £25,900

• Life expectancy – 77

2016

• Retirement age:• 65 men & 63 women

• Avg Pension - £87,220

• Lifetime limit - £1m

• House price – £200,251

• Avg salary - £27,600

• Life expectancy - 81

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Data: WorldBank, Partnership, Moneysavingexpert

2010 – 2016 – The story so far


BrightSkyMind

07/10/2016 5

Consumer


BrightSkyMind

07/10/2016 6

Regulator


BrightSkyMind

07/10/2016 7

Regulator


BrightSkyMind

07/10/2016 8

Technology

Health

Income

Where next?


BrightSkyMind

07/10/2016 9

Technology

Increased capability extends life but reduces

income


BrightSkyMind

07/10/2016 10

Health

Healthy Male 65 Healthy female 65

Unhealthy male 65

New risks emerging


BrightSkyMind

07/10/2016 11

Stag

e4

–St

ate

relia

nt

Stage 3 – Asset reliant

Stage 2 – Income reliant

Stage 1 – Parental reliance

4 stages of financial reliance

Income

Retirement


BrightSkyMind

07/10/2016 12

Stage 2 – Income reliant

Stage 3 – Asset reliant

Limits: Pension £1m & property

100%

?% ?%


BrightSkyMind

07/10/2016 13

Summary

• Solution isn’t Equity Release

• Vulnerability risk are new to our market but understood elsewhere

• Advice is key and needs to be shaped

• Technology is an enabler in all areas

• Regulator is supportive and the door is wide open

brightsky mind - thefsforum.co.uk€¦ · 10/07/2016 · technology, health and income tony crane....

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