AGE OF OPPORTUNITYWhat does an ageing society mean for your organisation?

James Cochrane

Age UK Norfolk

September 2014

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INTRODUCTION

• England’s population is seeing huge demographic shifts

• The population is growing - by over 7 million people to 60 million by 2033

• And ageing - 23% of the population will be over 65 by 2033

• Growth of the ‘oldest old’

• Increase in State Pension Age (SPA)

• Reducing birth rates

• A smaller number of working people

• A very different generation as the ‘baby boomers’ retire

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OUR CHANGING POPULATION

• A more diverse older population - the proportion of older people who come from a minority or ethnic background will more than double by 2033

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AGE OF OPPORTUNITYWHAT COULD THIS MEAN FOR YOUR ORG?

• Living through a period of extraordinary change

• Increased or changed demands for your service

More demanding service users

• Less availability of volunteers for your organisation

• An ageing workforce

Many over 65 are healthy and independent

• A need to find new and different sources of funding

• Fast moving digital revolution

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1. SERVICE DELIVERY

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SERVICE DELIVERY

• The sector is working in a very changing environment

• Grants have decreased & contracts have increased

over the last decade

• An increasing population of older people could

increase demands for health & social care services

• 57% of the voluntary sector workforce is now

employed in health & social care

Grants Contracts

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SERVICE DELIVERY – LOOKING 20 YEARS AHEAD

• State has shrunk - local & national government is redefined

• Voluntary sector now takes a lead in reaching the vulnerable and preventing disease

• Small charities are small and nimble - larger charities make use of economies of scale

• Increase in visibility and transparency

• Demand for services has risen

• Most service delivery now on line and users tech-savvy

• Technology allows more people to volunteer & in new ways

Scenario 1

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SERVICE DELIVERY – LOOKING 20 YEARS AHEAD

• As state rolled back, private sector rolled in

• Large gaps in provision by corporate state

• Competition is intense – leading to loss of transparency

• League tables of charity delivery standards

• Beneficiaries are much more proactive & want services that are different & delivered in different ways to what has been done

• ‘Oldest old’ and poor digitally excluded and increasing excluded from services

• ‘Charity’ model seen as old & outdated

• Sector struggling to find a role

Scenario 2

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SERVICE DELIVERY

• What does your organisation need to do now to mitigate/benefit from these scenarios?

• Should your organisation move the bulk of its services on line?

• How can your organisation share data in a collaborative manner?

How do you best encourage collaboration?

• Can you show the impact of your activities/services?

• Are you giving value for money?

Discussion Points

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2. VOLUNTEERING

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VOLUNTEERING

• 12.6 million people in England volunteer at least monthly.• The value of volunteers to the sector is around £23 billion

• Older people are some of the most regular volunteers

• Wealthier groups tend to volunteer more

• The increase in the State Pension Age could reduce the number of younger pensioners available to volunteer

• There are increasing moves towards portfolio careers

& semi-retirement

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VOLUNTEERING - LOOKING 20 YEARS AHEAD

• Volunteering rates remain high

• Professionalisation of volunteering

• Benefits to well-being & health of volunteering

• Use of skilled volunteering by corporates

• Increasing age of trustees

• Line between donor & beneficiary has become blurred

Scenario 1

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VOLUNTEERING – LOOKING 20 YEARS AHEAD

• Lack of interest in doing simple, routine volunteering tasks

• Rise in retirement age leads to lack of available older volunteers

• Difficulties in recruiting younger volunteers

• Skills and expertise not transferred between generations

• Continued shortage of trustees, failure of governance in some organisations

• Blurring of boundaries between personal and professional lives

Scenario 2

VOLUNTEERING

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Discussion Prompts

• Would could you organisation do to benefit from/mitigate these scenarios?

• How can your organisation make volunteering more attractive?

• How can your organisation attract the ‘oldest old’ through to young people to volunteer?

• How can the sector manage the blurring of user, donor and volunteer in the future?

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3. STAFFING THE SECTOR

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STAFFING THE SECTOR

• Most of the sector employees are women

• 40% work part time

• Nearly 16% of pensioners now work

Employees in registered charities

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STAFFING THE SECTOR – LOOKING 20 YEARS AHEAD

• Large supply of older female workers

• Sector is now the destination of choice for older workers

• Provision of training for older workers

• Life, work, caring balance in the sector

• Growth and support of younger workers via mentoring

• Teach Last merges with Teach First

• Effective age management in voluntary sector workplaces

Scenario 1

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STAFFING THE SECTOR – LOOKING 20 YEARS AHEAD

• Pension age increased to 70

• Chronic shortage of volunteers

• Charities failed to respond to flexible needs of older workers

• Loss of skills and experience to the sector & skills shortages

• Polarisation between generations as they compete for jobs

• Continued trend of underemployment

Scenario 2

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STAFFING THE SECTOR

• How can your organisation benefit from/mitigate these scenarios?

• How can your organisation best support, train and develop older workers?

• How can your organisation support cross-generational working and skills transfer?

• Do you have the flexibility to support and motivate part-time workers?

Discussion Prompts

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4. FUNDING

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• There has been an increase in contracts & decrease in grants over the last decade

• Sector income was nearly £40 billion in 2011

• 22% comes from individuals - £8.4 billion

• Half of all donations are from the over 60s

• £1.7 billion comes from legacies

• Only 16% of wills include a legacy to charity

FUNDING

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• Older people, especially women, continue to give more proportionately

• Those over 65 now one of the wealthiest groups in society

• Gift aid simplified

• Massive transfer of wealth between generations and growth of billionaires

• Increase in legacies

• Development of young donors

• Growth of payroll giving

• Corporate giving grows

FUNDING – LOOKING 20 YEARS AHEAD

Scenario 1

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• Austerity continued for much longer

• Voluntary donations have shrunk – many are asset-rich, cash poor

• Older people have supported family first, rather than giving

• Closure of National Lottery

• Mergers and take overs

• Corporates give time rather than money

• Changing definition of ‘charity’ & public distrust

FUNDING – LOOKING 20 YEARS AHEAD

Scenario 2

• What can your organisation do to benefit from/mitigate these scenarios?

• How can your organisation secure on-going support?

• What can you do to increase legacy income?

• How can your organisation demonstrate value for money and impact?

FUNDING

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Discussion Prompt

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‘Retirement offers the over 50ies the chance to rev up rather

than slow down, to start a new business or career, to invest

and seek adventure --- all with confidence, experience and

attitude’

Tom Saviger

The Future Laboratory

April 2014

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The Age of Opportunity

Are you ready ?

April 2014