Wednesday, August 16, 2017

Research in the Lancet has good and bad news about life expectancy and the demand for care facilities

First the good news

Between 1991 and 2011, there were significant increases in years lived from age 65 years with low dependency (1·7 years for men and 2·4 years for women) and increases with for men and women with high dependency.

The majority of men's extra years of life were spent independent (36·3%) or with low dependency (36·3%) whereas for women the majority were spent with low dependency (58·0%), and only 4·8% were independent.

Now the bad news

Assuming that the ratio of people requiring a care homes remains constant then as a result of population ageing it means that an extra 70,000 care home places need to be available by 2025.

You can read the full report in the Lancet online. 

As I have explained on numerous occasions, the existing model of care provision is not working (a polite way of putting it). There is not the public funding available to pay for more care facilities and very soon the cross subsidisation coming from private payers will come to an end.

The Lancet figures show that there is going to be a huge demand for care facilities that older people with the necessary wealth with be able to afford. What happens to the others, the majority, I dare to think. Dick Stroud

Mark Ritson has a few words to say about brands

As marketers age they either disappear from view or become cynical or both.

In Mark Ritson's case he is very much in view and providing a good dose of reality therapy for the many marketers who inhabit Idealism Land.

This has nothing to do about older consumers but I expect most of them would agree with the sentiment.

Here is what he had to say in today's Marketing Week.

Brands aren’t loved by anyone either, other than the marketers who manage them. Most of these marketers live a virtual reality existence of brand love and corporate purpose. These marketers have forgotten that the fact they spend their lives working on a brand does not make up for the brief seconds of time it takes up in the consumer’s life.
Most brands are totally ignored.
A few have a tiny dollop of salience, which proves enough to win market share. Still fewer have genuine meaning for customers. But this vision of consumers establishing relationships and love for brands is over-wrought marketing horseshit – the wet dreams of marketers that never actually hang out in the supermarket aisle, or listen in to call centre staff, or stand in the rain while consumers trundle past their hot new visual merchandising in that shiny big window that no-one notices.

Great stuff. Dick Stroud

Tuesday, August 15, 2017

Age inequality is in the eye of the beholder

The ONS has recently issued data about household income in the UK,

The main point in the report states:

In 1977, only around one-fifth (21%) of retired households had an annual disposable income of over £10,000 (after accounting for inflation and household composition) but by financial year ending (FYE) 2016, this had increased to 96% of retired households.

Now let's put that into perspective - the salary of a primary school teacher in the UK is £30,000.

Surely it is to be welcomed that the country now has nearly a 100% of retired people with an income of at least a third of that of the first rung of school teachers?

No, no, no. The Guardian is outraged and reports

The average gross income for a pensioner household soared (don't you just love the choice of the word 'soared') to £29,000 in 2016 from £10,500 in 1977, after the figure was adjusted for inflation, according to the Office for National Statistics. 

What has happened in the UK is that the household income of retired people has increased from one of the lowest in Europe. Something to be celebrated but for some reason it annoys the hell out of many of my fellow citizens.  Dick Stroud