Winter Newsletter 2025
Preparing for the longevity megatrend in an uncertain world
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As a new year dawns and we ponder
what the next 12 months may hold for us
as individuals and investors, one thing
is for certain – some familiar challenges
lie ahead.
The International Monetary Fund (IMF)1
unveiled its latest economic assessment
the week prior to the US election, proclaiming
a period of ‘stable but underwhelming’
global growth for the year
ahead. The update also predicted a return
to a more neutral monetary policy stance
as inflation in most economies steadily falls
towards target in 2025.
The report acknowledged ‘exceptional’
levels of uncertainty, which Donald
Trump’s subsequent return to the White
House has done little to ease. Quantifying
the impact of the Republican’s victory
is difficult at this stage, but a return to
US protectionism and the prospect of
trade wars certainly pose a threat to the
global economy.
A global phenomenon
The IMF forecast also highlighted some
structural challenges that are expected to
temper global growth, with an ageing population
amongst the most prominent. As
well as impacting the economy and presenting
an investment theme to capitalise
on, the unfolding longevity megatrend is
a global phenomenon, which presents a
financial challenge at a personal level too
as we live longer.
Life goals
Research2 suggests most of us are vague
when it comes to financing increased longevity
– less than a third of 55 to 64-yearolds,
for example, currently prioritise funding
retirement. Preparation and setting
life goals typically makes us feel more in
control of, and optimistic about, our futures
and is undoubtedly key to confronting the
realities and practicalities of living longer.
Such targets, though, do need to be
focused beyond current life stages.
Talk, support, plan, live Encouragingly, the research also found
that people who use an adviser tend to be
better prepared for later-life eventualities,
whether that be financing retirement or
providing support for loved ones. Considerations
extend to emotional and practical,
as well as financial. Another element
of longevity is successful communication.
Advice helps clients successfully navigate
the financial landscape as well as encouraging
them to engage family in financial
conversations; we can support you on all
counts – it’s all in the planning!