literacy.” It also touches on more qualitative aspects of retirement, such as helping people to stay active and find a sense of purpose in their later years. Some people, for instance, may want to continue working, albeit at a slower pace or in an entirely new field. “We talk about things like phased retirement,” Nazeri says. “With this concept, people don’t work five days a week for 30 years and then suddenly leave. People can phase out of work by working three or two days a week, so you still have that community—you still get an income. You can also do things like reverse mentoring, where you share your institutional knowledge, and you’re keeping your purpose going.” The World Economic Forum has been engaging people through webinars and social media, as well as reports on longevity literacy, Nazeri says. The forum also hopes to persuade policymakers who have a say in designing retirement and pension systems at the national level. The challenge is persuading people to embrace and act on the concept, Nazeri and Belelieu say. “Human beings tend to be very good at focusing on the short term and not as good at focusing on the longer term,” Belelieu says. “Even if you demonstrate that this is something you need to prepare for at a much earlier age, it’s still something that people struggle to balance.” That’s where reverse mortgage lenders and other financial professionals can play a role. “Financial products can help build financial resilience,” Belelieu says. But financial firms can and should take a broader advisory role when it comes to retirement. “More and more responsibility for retirement is falling to the individual. The more resources and help they can get from financial firms will, to some extent, decide which financial firms build those deep relationships with people over time.” Advisers, for example, can work with clients to build personalized life plans that address both financial and nonfinancial needs, Belelieu says. “In the past, you might have just sold an annuity or a financial product that would help set people up for retirement.” Now, he says, some financial companies are becoming just as interested in health and wellness products for their clients. Technology also can lend a hand in prompting people to save for and think about retirement. Some members of the World Economic Forum’s working group on longevity recently built an app called Halixia to help people plan for retirement around four pillars: health, wealth, learning and community. Halixia was initially made available in the United Kingdom, but its creators plan to expand into the U.S. “Research has shown that if you prompt people toward the right behaviors, or you nudge people in the right direction, the outcomes tend to be much better,” says Belelieu. Changing Needs No matter their grasp of longevity, many retirees are still likely to face financial distress, particularly as their needs evolve in the years ahead. Baby Boomers benefited not just from a stronger pension system. They also were more likely to be married and have children who could provide care later in life, says Genevieve Waterman, director of financial and economic security for the National Council on Aging. Younger generations are less likely to marry and start families. As they save for retirement, they need to be thinking about who will care for them. Their ability to save, meanwhile, may be hampered by debt. Home equity can be a solution for many. But financial advisers also can work with clients to help them understand and access the myriad assistance programs that help people stretch their savings, Waterman says. Older adults often come to the council’s community-based organizations with one problem, she says. But when staff members step back and look more broadly at a person’s situation, they find other needs, as well as new ways to address them. Assistance programs can help with things such as food, care, transportation, home modifications and other needs. “The holistic approach to dealing with someone’s situation is always ideal,” Waterman says. Understanding Longevity continued from page 31 Genevieve Waterman 32 REVERSE MORTGAGE / MAY–JUNE 2023
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