Nassau Re/Imagine hosted a forum, “Delivering Products of the Future for the Next Generation of Retirees, Reimagining Retirement”, where our CEO and Co-Founder, Scott Moody, and other industry thought leaders discussed the rapid advances in technology and the impact on those looking at retirement.
Our Virtual Discussion Forum
In a virtual forum on December 15, 2020, we discussed how we could rewrite the code for managing a successful retirement. We discussed a range of potential outcomes. This included radically redesigning annuities as we know them. It extended as far as thinking about life in retirement as a giant app connecting the retiree to a range of services where insurance is really just the battery keeping the system working. We will synthesize our discussion and provide a roadmap for future product developers to potentially follow in the coming years.
Context
The definition of retirement products may entirely change as we emerge from the pandemic. Structural changes in our economy may result in very slow growth. Interest rates may remain at record low levels over the next five years. As a result, traditional retirement savings products may not deliver the growth and income potential needed by consumers in later years. However, rapid advances in technology offer a new range of potential services that could change the math for a happy and secure life in retirement.
Current Industry Landscape
Prior to COVID-19, the traditional retirement industry invested significant resources attempting to encourage more people to save for retirement. In a recent study, entitled Report on the Economic Well-Being of U.S. Households in 2018, the Federal Reserve found that that 17% of those aged 45- 59 reported having no retirement savings.1 Of that same group, only 42% felt they were on track to save for retirement. Studies have continuously demonstrated that general savings rates among the U.S. population continues to remain at very low levels.
Redesign the UX of Retirement
“There’s no such thing as a visionary and a pragmatist. Everybody’s a pragmatist. They need technology and now they recognize it.” — Scott Moody, K4Connect
The future retirement product could be an app that connects all services required for a happy life beyond work. Scott Moody, Co- founder and CEO of K4Connect, offers an app for digital life in assisted living centers across the country, as well as to individuals. COVID-19 opened new doors to this possibility. “Everybody’s familiar with the idea of crossing the chasm, the technology adoption curve. Senior living, that chasm, was actually relatively wide, so people were asking, ‘Do I need technology now? Can I wait until next quarter?’ Well, that chasm slammed shut, that’s over. There’s no such thing as a visionary and a pragmatist. Everybody’s a pragmatist. They need technology and now they recognize it.” Will traditional retirement products just be buttons on the interface of the future app or the battery that powers the entire device?
About Re/Imagine
Nassau Re/Imagine serves as incubator for companies intending to build a presence in Hartford. We actively support individuals and team committed to building a vibrant insurtech ecosystem in the heart of our insurance community.