Monday, March 31, 2014

German Exports Grandmas and Grandpas Seek Homes Abroad

By: Medical Tourism Magazine
An elderly woman gingerly walks along a shopping mall in Berlin, looking to cross the street. Although the fall air has comfortably graced the autumn of her life, on this day she may soon find herself not reaching for the nearest curb, but rather beyond national borders to countries like Austria, Poland and Slovakia, among others in the European Union where some of Germany’s growing senior population are finding nursing care to be not only more affordable, but friendly as well.
Often too frail to live on their own, grandmothers and grandfathers across Germany are forsaking long-term care in their country of origin for the personal and round-the-clock attention that makes nursing facilities abroad feel more like home.
Long considered a pillar of the country’s welfare model, Germany’s extended care system is one of only a handful offered by nations worldwide – Japan, Korea and the Netherlands, the others – that provides financial protection to citizens who cannot live independently because of their age.
Cost and care are driving the early exodus from Germany. That there aren’t enough nurses to provide adequate treatment doesn’t help.

Nursing Shortage

The shortage is expected to increase. A study found that Germany will need to add capacity to accommodate 3.2 million patients entering nursing homes and in-patient facilities by 2030. The rapidly aging population will drive the demand for 371,000 in-patient beds, 157,000 more nurses and 331,000 additional health workers within the same period. The “2013 Nursing and Medical Home Report” by Accenture, Rheinisch- Westfalisches Institut fur Wirtschaftsforschung and the Institute for Healthcare Business, shows Germany will need to invest between 54-73 billion euros to manage the influx of new patients entering in-patient facilities by 2030.
Caregivers speak German, the elevator announcement is in German, residents dine on classic German cuisine and German soccer stars race back and forth on a large-screen television.
The World Health Organization calls Germany a “demographic time bomb.” Alarmingly so, almost a third of all Germans — by 2050 – will climb to 65 years or older. Many will be in need of nursing care, a situation made more troublesome because nursing care, experts agree, is looked upon as a less than- attractive profession.
“Working in the nursing sector needs to become more attractive to meet the shortage of trained nurses,” said Sebastian Krolop, M.D., managing director of Accenture’s health business and co-author of the study. “However, this means the compensation needs to rise and health systems need to increase operational productivity so nurses can focus more on patient care.”
Sonja Miskulin can’t remember the nine-hour trip she took to Poland from the German home she left behind forever. Dementia has gotten the best of the wheelchair bound 94-yearold, who was sent north by her daughter in the hope of a better life and less expensive care.

Global Dilemma

Exporting grandmas like Miskulin has global implications beyond Deutschland, where one in five seniors already consider traveling abroad to culminate their lives in a nursing home. All countries are aging. The United Nations estimates that the world’s population over 60 years of age will grow to 2 billion by 2050. By that time, Germany will have the oldest population in the world (Organization for Economic Cooperation and Development), second only to Japan. As life expectancies increase in industrialized nations like Germany, Japan and Italy, the cost of nursing care is becoming prohibitive for a global generation of baby boomers entering old age.
In Germany, where the price of senior care is softened by government assistance, spending on the elderly is expected to increase from 1.4 percent of gross domestic product to 3.3 percent of GDP by 2060, the European Commission reported. Long-term nursing insurance in Germany is predicated on the equal contribution between employees and employers — roughly 2 percent of an individual’s income. But, the model, designed by Chancellor Otto von Bismarck 120 years ago, has exposed limitations with its own age.
Leonard Tegls sits among a group of German and Polish residents at a nursing home in Szklarska, a mountain town in Poland. As he moves Scrabble pieces, Polish workers serenade him with hugs, smiles and encouragement. Tegls told NPR that his stepdaughter brought him to Poland, 500 miles from the German town of Moenchengladbach, after he could no longer fend for himself and she did not have room to take him. He is one of 10 German seniors at the Sun House, and that number is expected double soon.
“Our treatment isn’t different than what is offered in Germany,” Helena Grab, director at the Sun House, said to NPR. “But, what German relatives of the patients tell us is that it’s much more warm-hearted. We treat them in a friendly and hands-on manner. We knock on the door before we go into rooms. This approach appeals to our patients’ loved ones.”

Not all on Board

Not all Germans are on board with their seniors packing up and leaving. A TNS Emnid poll found that more than 4 of every 5 Germans reject the idea of elderly citizens spending their final years in Poland or nearby Slovakia, another country to which seniors are moving. Munich’s leading newspaper Suedeutsche branded the trend as “gerontologic colonialism and featured a cartoon depicting Germans traveling eastward on walkers, in wheelchairs, and on hospital beds.
Klaus Pawletko, of the Berlin-based Friends of the Elderly, blames the German senior migration on inexpensive facilities abroad and relatives determined to protect their inheritance. He said sending elderly Germans to a foreign country makes them feel cast off.
As seniors exit, the German economy prods along. One in 10 Germans are unemployed. Jobs once considered life-long are expected to be gone before new ones emerge. The search for employment has broken families, meaning more women have to work and are unable to care or look after older parents like their mothers did. A new generation of retirees will have more problems than planned for.
While nursing home costs have escalated, to some $3,800 per month in Germany, pensions have relatively remained the same. Arthur Frank, founder of the Senior Palace in Slovakia, told the Christian Science Monitor that his five homes cost between $1,300 and $1,800 per month. Germans can either get their nursing home costs partially covered or receive a lump sum, of roughly $910, that can be used by relatives. A good number of relatives opt for the larger sum and forgo nursing home care.

Free Movement: EU Reality

European Union law forbids German insurance funds from establishing deals with nursing homes abroad, in part, because regulating quality of care then becomes difficult. But, free movement is a reality in the EU. Experts say the number of people traveling to other countries will be limited – about 5,000 per year – but is still a worrisome sign. Small steps to lift obstacles that keep the elderly from remaining independent could curb the exodus, but not all are on the same page.
Polish entrepreneurs and owners of resorts look at elderly Germans with money in the bank and see opportunity. Facilities that once saw better days, now welcome Germans with a little bit of Germany.
At the nursing home in Zabelkow, a Polish town once ruled by Austria’s Habsburg Empire and by Prussia, caregivers speak German, the elevator announcement is in German, residents dine on classic German cuisine and German soccer stars race back and forth on a large-screen television. Fabrice Gerdes, who managed the opening in March, told Bloomberg News that the home has filled its 34 beds and is finishing six more rooms that are already spoken for – in German, of course.
“We have significantly beaten the goals we set for ourselves,” said Gerdes.

Young, yet Restless

In the end, sending grandma and grandpa across the border may spring more problems than an early frost. Good care in the Czech Republic can mean a 10-year wait. How soon before the natives in Slovakia get restless is only a matter of time – in the Europe Union, in Japan, or – for that matter – anywhere in the world where elderly populations grow and sound, affordable care diminishes?
Dimitrios Kalantzis says his 82-year-old grandmother is unable to care for herself. She spent the majority of her adult life in Germany, where she moved to from Greece decades ago to work in a factory with her husband. Kalantzis says his grandfather died in 1994 and his grandmother traveled to the United States to live in Brooklyn with his mother.
There are about 10 million people in the United States taking care of elderly parents. Dimitrios Kalantzis said being a full-time caregiver can take a toll on someone who already has a full-time job. He knows. His mother does both.

Why Boomers Are More Likely To Succeed as Entrepreneurs

By: Alexandra Levit / business2community.com
A study by the Ewing Marion Kauffman Foundation reported that the highest rate of entrepreneurial activity over the last few years is not Gen-Y upstarts, but Baby Boomers in the 55-64 year age group. In fact, Boomers are actually driving a new entrepreneurship boom as they retire from their traditional corporate jobs and seek more meaningful sources of work.
According to the U.S. Bureau of Labor Statistics, 60 percent of the country’s workforce is currently made up of senior employees, but long-term employment has fallen dramatically for people ages 35-64. Since the first Internet-era recession, transaction costs and barriers to entry have fallen for entrepreneurs of every age. And with longer life expectancies and greater health in later life, older generations are starting new firms and mentoring young entrepreneurs in record numbers.
According to Jeff Mariola, the Boomer CEO of online marketing firm Digital Brandworks, Boomers are also more likely to succeed as entrepreneurs. When I asked Jeff why this was the case, he provided four compelling reasons.
Greater emotional intelligence
The rapid growth and constant change environment inherent in a start-up business requires steady and consistent leadership. Boomer CEOs have worked through countless change management initiatives over the years. They can provide their coworkers with the guidance, inspiration and motivation required to get everyone focused on the vision of the business while acknowledging that the road to get there will naturally be filled with anxiety, fear and exhilaration.
Savvy talent management
The long term success of a start-up relies heavily on the recruitment of the best talent. Boomer CEOs have learned through painful trial and error the artful process of finding the right people. Having made a few bad hires in their time, they understand who to bring on and who to pass on – and why. They have also learned how to get the best work out of existing talent.
Networking that’s finally paying off
Experienced CEOs have a better understanding of how to manage critical external relationships with banks, investors and board members. Credibility is key in these relationships, and the fact that Boomer CEOs have “been there and done that” is reassuring to outside stakeholders. Also, most Boomers simply have bigger networks and thousands of valuable dormant ties as a result of decades of networking.
Financial experience and extra capital
Most start-ups fail because they run out of cash. Boomer CEOs fully understand the significance of cash flow and how to manage and protect it. They have a more accurate picture of what things will cost and how long it will take to turn a profit. Also, most Boomers have more savings to safely invest as capital in their business to give it the best fighting chance. In general, this is how the rich get richer in business.
If you think about it, the qualities and seasoning that make Boomers great entrepreneurs make them great employees and intrapreneurs as well. I always jump at the chance to work with a Boomer because I know I will learn a ton. I have numerous Boomer mentors who I tap for advice periodically. I drink up their experience and perspective like a sweet cocktail, and my efforts are always better for it.
Boomers sometimes get a reputation for being stuck in their ways. But sometimes, it’s because those ways work. So the next time you are tempted to be ageist, recognize that the Boomers have advantages that you don’t and thus should be an essential component of every team.

4 product trends to know about in 2014

By: Nichole Morford / lifehealthpro.com
Which product or investment areas are you most interested in learning more about or adding to your product offerings? We asked more than 100 independent producers this question late last year as part of our 2014 Advisor Survey, and the answers we received tell a lot about the direction the industry is headed. This year, the focus is largely on boomers and the products they need to launch a successful retirement. From advanced uses of indexed life insurance to Med Supp sales strategies, these are the topics your peers placed at the top of their knowledge wish lists.

1. Social Security maximization strategies (50%)

For baby boomers approaching retirement, Social Security brings up a host of unanswered questions. How soon will I be eligible? When is the best time to begin taking withdrawals? What about for my spouse? Even for advisors who know the program well, these questions can be daunting because so much depends on the client’s individual situation. Mark Caner, president of W&S Financial Group Distributors, Inc., advises looking first at the immediate milestones your client is facing that may be impacted by Social Security. Looking at the smaller picture, rather than trying to answer each and every question your client may have over the course of 20 years, allows you to create a tailored plan that doesn’t overwhelm your client.
Caner writes, “For example, let’s say your client is coming up on common action stages of the retirement planning process. Perhaps they are approaching age 60. If that’s the case, 62 looms as a milestone:
  • 62 is the earliest a worker can receive a Social Security retirement benefit. The benefit will be 75% of the full retirement age benefit. For workers born 1955 and later, the early retirement benefit will be less than 75%. The minimum is 70%.
  • 62 also is the earliest a spouse can receive a Social Security spousal benefit based on worker’s earnings history. Benefit will typically be 35% of worker’s full retirement age benefit. For those born in 1955 and later, the spousal benefit will be less than 35%. The minimum is 32.5%.

2. Baby boomer demographics (38%)

By 2017, baby boomers will make up half of the U.S. population, a 2012 Nielsen study revealed, while simultaneously deeming them ‘the most valuable generation’ for marketers. What’s more, this generation needs financial advice, and lots of it. Having watched the 2008 market crash from the peak of their careers, many boomers saw their retirement portfolios take a substantial tumble. As a result, they’re gun-shy about investing and eager to learn about secure products like fixed annuities that can safeguard their lifestyle and offer guarantees as they move into a decumulation phase. They are also looking for a highly customized financial plan, one that takes into account where they fall within a generation that spans a whopping 20 years.

3. Advanced uses of indexed life insurance (38%)

From a $64.8 million market in 1998, indexed universal life (IUL) has grown to become a powerhouse that in 2012 brought in $1.3 billion in annual premiums. There’s a lot to like about this product. As Brian Andersonwrote for LifeHealthPro late last year, “Unlike traditional universal life, where interest is credited based on a declared rate determined by the insurance company, IUL interest is credited based on the performance of an index or indexes. And unlike variable universal life, IUL offers protection to the cash value. You’ve got upside crediting potential with protection against market downturns. This has proven to be a winning formula in a low interest rate environment.”
Everyone, it seems, agrees that this is a growing market. And so everyone wants to know more.
But the sales process is not a slam dunk, namely because IUL outprices many of its cousins in the life insurance world. Dick Weber, president of The Ethical Edge, Inc., offers this advice to agents who are struggling to close the sale: “Price is only an issue in the absence of value,” he notes. “Here's what I recommend to a broker struggling with ‘why would I recommend paying anything more than necessary for life insurance?' Add value — like riders — to get away from number-driven sales.” 

4. Medicare Supplement sales (38%)

Like Social Security, Medicare brings us back to the demographic that many advisors are looking to reach: the baby boomers. As more and more of this market turns 65 — 10,000 boomers each day, to be precise — their questions related to Medicare are mounting. Should I buy Medicare Advantage or Medicare Supplement? If I buy Med Supp (the stronger coverage, particularly now that doctors are seeing their reimbursements slashed for Medicare Advantage), which supplements best match my health concerns and my lifestyle? What coverage do I need if I expect frequent visits to my doctor’s office? If I may have an extended hospital stay? If I have expensive prescriptions? If I travel overseas? Knowing Med Supp from A-N is an excellent foot in the door to serve the boomer market in an area of great need.

La jubilación, tal y como la conocemos hoy, podría ser pronto cosa del pasado

Por: Recursos Humanos RRHH Press
El último estudio realizado por The Economist Intellegence Unit y Towers Watson a 480 altos ejecutivos de empresas en toda Europa, denominado ‘Is 75 the new 65? Rising to the challenge of an ageing workforce’, presenta un panorama laboral europeo envejecido, con un 71% de encuestados que piensan que la proporción de empleados mayores de 60 años se incrementará en 2020, incluyendo el 22% que esperan que lo haga de manera significativa
La tasa de natalidad ha disminuido desde la década de los 60 y, al mismo tiempo, la esperanza de vida ha aumentado ocho años. Esta combinación hace que la población activa europea esté envejeciendo.
En la actualidad, en Europa viven 1,6 personas por cada una en edad de trabajar, y para 2060 se estima que serán 2. El cambio en la proporción de personas dependientes mayores de 65 años frente a las empleadas es aún más notable. Así, en la Unión Europea esta proporción aumentó del 21% en 1992 al 27% en 2012, y se duplicará hasta el 52% en 2060, a menos que se incremente aún más la edad normal de jubilación.
Esta tendencia ineludible tendrá profundas implicaciones para los gobiernos, los ciudadanos y las empresas de toda Europa, que se sumarán además, a la fragilidad económica que están experimentando los países europeos. Por tanto, la manera en la que conocemos la jubilación a día de hoy, podría convertirse en una cosa del pasado.
Las pensiones públicas y la cobertura sanitaria que ofrece hoy el Estado se verán sometidas a una gran presión. Este estudio ha desvelado importantes conclusiones entre las que destaca que la mayoría de las empresas son conscientes que tienen que cambiar su actitud respecto a los empleados de más edad. Un 43% de los encuestados asumen que tendrán mayores costes al modificar sus prácticas laborales para abarcar a empleados de varias generaciones diferentes.
Pero, aunque el tema del envejecimiento es la premisa para empezar a adaptarse a la nueva situación laboral, el estudio refleja que todos los empleados se beneficiarán de los cambios que las empresas están acometiendo; ya que más de la mitad de los encuestados (56%) ofrecerán horarios más flexibles o la posibilidad del teletrabajo.
En España, el 84% de los directivos encuestados piensan que la mayor preocupación de sus empleados en la actualidad es la seguridad en su puesto de trabajo, en 2020 -anticipando una mejora en el entorno económico y en el mercado laboral- esto cambiará radicalmente, pasando a ser prioritario el ahorro para su jubilación, la conciliación entre vida personal y profesional (prioridad común a nivel europeo) y la flexibilidad en el trabajo.
Un 64% asume que se incrementará la demanda de beneficios sociales por parte de los empleados, principalmente pensiones y seguros médicos, y un 47% cree que tendrán que afrontar mayores costes en dichos beneficios sociales.
Un 55% de los encuestados españoles consideran que es el Estado el que debería, en mayor medida, financiar nuestra jubilación, mientras que ese porcentaje cae a un 24% cuando hablamos del resto de Europa. Al mismo tiempo, un 32% de los encuestados señala el déficit público en España como el principal reto que tiene que afrontar el país, seguido de los cambios demográficos (27%).
Gregorio Gil de Rozas, Head of Retirement Solutions de Towers Watson España, señala que “es sintomático que en España se considere al Estado como principal fuente de recursos para financiar la jubilación, y que, a la vez, identifiquemos que nuestro Estado no tendrá recursos suficientes para afrontarla. Las empresas, para con sus empleados, y los ciudadanos, de manera individual, tendrán que acostumbrarse a ahorrar más para la jubilación. Es el momento de incentivar definitivamente el ahorro a largo plazo y en previsión social en este país”.