Innovating for the forgotten generation

Innovating for the forgotten generation

I was recently invited to speak at the TiECON Florida conference in Tampa Bay. I came back amazed and fascinated by the entrepreneurial activity and enthusiasm of the community in Southern Florida. Unbeknownst to me, University of South Florida (USF) is amongst the nation's Top 30 for research expenditures among public universities, according to the National Science Foundation. It has a vast amount of intellectual capital, ranking 19th out of 200 U.S. universities in research commercialization with 125 patents granted for 2017. It is also the home of USF Connect, a technology incubator that unite technology and talent with businesses. The program has supported more than 2800 graduate and doctoral students, and partnered with more than 350 companies on more than 1400 research projects. "Its investment of more than $65 million has contributed to more than $1 billion in quantifiable downstream impacts".

Against the backdrop of such intense passion for innovation, I chose the topic of innovating for the forgotten generation. Innovation and aging is not something that we would typically think of – together. And I thought this would be a provocative enough topic to push the thinking of the entrepreneurs in audience.

When you search for the word “Aging” in Google, the first images you see are those that show physical decline and wrinkles. But if you take a good look around us, the way we age is changing. A 50-year old today is likely not the same as a 50-year old twenty years ago. I would also challenge that, the 50-plus age group is much less homogeneous compared to previous generations. Across the spectrum, you will find people being the same “age” but at different stages of their lives. Take one of my good friends for example: Not only does he have two older college kids, he also has a 2-year old from a new marriage, and he is not planning to retire anytime soon. “Age is just a number” holds more truth today than before. So instead of using age as a determinant, we must think broader in terms of life stage and life events. Since the early 1900s, we have added 30 years of living. We are starting family later in life and we are retiring (and re-retiring) later. If all aspects of our lives are changing, then why not the way we plan and manage our finances?

In the next two days, twenty thousand people in the U.S. will turn 65. Visually, that is about the same number of people that Madison Square Garden or Oracle Arena can hold. By 2050, this population of 65-plus in the U.S. will double. As for Japan, the “ultra-aged” country in the world, more than 28% of its population will be 65-plus by 2030. Not only are there more people, we are also living longer, healthier, and more productive lives. While 80% of boomers plan to work full time or part time past the traditional retirement age of 65, the nature of work continues to change. According to Kauffman Foundation, more than 50% of new entrepreneurs in the U.S. last year were aged 45 and above. For every dollar spent in the U.S., 51 cents is spent by people over the age of 50. As indicated by The Longevity Economy Report published by AARP and Oxford Economics, the 50-plus demographic generate US $7.6 trillion in annual economic activity, which includes housing, transportation, food, healthcare, and entertainment.

Given all of the above, isn't there more we can do to innovate for the aging population? What if we change from focusing on technology for younger demographics, to focusing on solutions to meet the needs of all as we age? What if we move from designing products for people as they age, to designing products with people as they age?

Preparing for the new normal

According to Lynda Gratton and Andrew Scott, authors of the book “The 100-Year Life”, the majority of children born in rich countries today can expect to live to more than 100 years old. And the future of centenarians is female: 82.8% of people aged 100 and above in the U.S. are women.

By 2040, adults aged 65 and older will account for more than one in five Americans, up from 15% in 2015. Multi-generational families will become more common. By 2030, 70% of 8-year-old’s are projected to have living great-grandparents.

With more people living longer, caregiving is becoming a growing reality. 90% of older adults prefer to live independently at home. Overtime, 7 in 10 will need daily-living assistance. There are currently over 43 million unpaid family caregivers in the U.S, with nearly 25% of them between the ages of 18 and 34. By 2030, there will only be four potential family caregivers available for every person requiring care. That ratio will fall to 3:1 by middle of the century. AARP calls this the “Caregiving Cliff”.

According to Pew Research Center, 86% of 18- to 29-year-olds in the U.S. and 76% in Germany view it as their responsibility to financially help aging parents. Question is, will they be able to balance the challenges of student loan debt and changing nature of work with their family responsibilities?

On a macro level, the trend is indeed worrisome as many caregivers remain unprepared for the financial implications. 7 in 10 family caregivers provide financial support as part of care according to the recent Northwestern Mutual 2018 C.A.R.E. study, and 34% of them spend between 21 to 100% of their monthly budget on caregiving-related expenses. Meanwhile, almost half of future caregivers have not planned for the financial implications of taking care of their loved ones, and only 27% have planned for their own long-term care.

It is time for a new narrative.

The World of Artificial Intelligence, Robotics, and Internet of Things

Caregiving transcends physical work and financial support – it is also emotional and takes a toll on not just the caregivers, but also the broader circle of family members.

While technology cannot replace the human touch or some of the physical tasks that caregivers perform, there are ways that technology can help to ease the burden and provide the caregivers much-needed peace of mind, while helping their loved ones maintain independence and dignity. Here, we will examine some of the latest innovations.

Voice Technology

By now, we are all familiar with virtual assistants such as Alexa and Siri. The voice opportunity (pictured below, courtesy of Invoca) is predicted to be worth more than $18 billion by 2023 according to the Invoca Rise of Voice Report. 19.7% of the U.S. adults have access to smart speakers today, up from less than 1% of the population just two years ago. With consumers becoming more comfortable with the devices, nearly two-thirds of device owners now use them on a daily basis.

Aside from basic banking transactions, a few organizations have also been experimenting with various virtual assistants for caregiving purposes. For example, Alexa can be used to control lights and thermostats in the house, a great help for people with disability. AskMarvee, a startup founded by Heidi Culbertson, allows caregivers to be connected to their loved ones through Amazon Echo. Meanwhile, LifePod is an artificial intelligence (AI) powered solution that provides voice prompts (e.g. medication reminders) at predetermined intervals. In fact, applications that support medication adherence are particularly important to the older demographics due to the amount of medication they typically take; some of the startups innovating in this space include Medisafe and AdhereTech.

Robotics

Speaking of medication adherence, ElliQ is a new AI-driven companion robot that interacts with the older adults, tracks medication, and connects them with their families, friends, and doctors through video calls and social media. More interestingly, it can also suggest activities and learns from the user’s preferences. Faced with severe shortage of caregivers, Japan is embracing robotics to bridge the gap and provide companionship and assistance to the aging population. Panasonic is experimenting with a voice-activated self-driving fridge that responds to voice commands and navigates around the house on its own. Imagine how useful this technology could be for seniors with mobility issues. And what about people who forget to eat due to cognitive decline? What if this technology can be enhanced to self-navigate to the users at pre-determined time intervals?

Sensors

On the subject of independent living, sensors installed around the house, such as those from Alarm.com, can detect if the person is moving around or if the door is unlocked. And with algorithms that detect behavioral patterns, the caregivers will be alerted if activity level or habits have changed. Luna Lights, a startup from Chicago, provides an automated lighting system that gets activated when the pressure sensor detects a user getting out of bed. In addition to acting as a safety solution, there is also a software component that collects data regarding the frequency and duration that an adult is out of bed at night. An alert is sent to a caregiver if an older adult is out of bed for an extended period of time. The data collected also provides insights on trends in nighttime trips, which could be an indication of underlying health issues.

Similarly, wearable tech by MyNotifi and UnaliWear are designed to provide emergency assistance and alert designated family member or friend when fall is detected. We have come a long way from the days of big pendants – which signal frailty rather than independence. And none more profound than the promise of autonomous vehicles, that has the potential of changing the conversation from “taking the car keys away” to “letting the self-driving car take you to where you need to go”.

Financial Management

While much of the focus on AI in financial services sector is on wealth management, the conversations are typically around how to leverage robo investing for younger demographics. But what about the 50-plus that control over $30 trillion of investible assets? Those who don’t have their own financial advisors but are looking for the best strategy in drawing down their assets and making sure they do not run out of funds in later years?

Technology should be age-blind (such as Pefin's AI Financial Planning tool); the same solution that helps millennials figure out if they can afford to buy a home can be used to help sandwiched generations plan for finances between multiple households and generations. Similarly, algorithms and data analytics can also be used to help near-retirees understand how much longer they need to work or if they have sufficient funds to help with their grandchildren’s college tuition. Financial planning should be customized based on life events and aspirations, and dynamic and adaptive to changing societal and market conditions. Opportunities exist for financial advisors and wealth management firms to provide more personalized services for women, who tend to have accumulated less assets, contributed less to social security, and who have longer living years compared to their spouse.

Looking ahead

No matter who we are, where we live, and whether we like it or not, technology is changing every aspect of our lives. We have the power to leverage innovation to serve a greater purpose and for the well-being of the society. What limits us is not the technology itself, but rather, our will, our heart, and our imagination to do the right thing.

Let’s dare to dream for a better future, not just for ourselves, but for the generations after us.

Be part of the change.

Igbinosa sarah

Student at Göttingen Universität / Self taught UX/UI Designer

5y

Hi Theo, I attended the just concluded #SMWLagos and every session was focused on technology advancement for millennial, not one was for the Older people and it got me questioning this new millennial trend where inclusion of the older citizen is not put into consideration. Thank you for this article.

Anna Agnieszka Mika

SEO and Traffic Acquisition

5y

Hello Theo, thank you for sharing this really interesting article. You have done a thorough research for that too. In fact reading it I was reminded about seeing recently on the social media platform, the graph showing the changes in our life length and quality. You have given such a great insight into the mega important topic. Thanks a lot Theo. Best regards, Anna, Singapore.

Heidi Culbertson

Entrepreneur and advisor | Top Leader in Conversational AI, Product & Design | AgeTech | Keynote speaker |

5y

Theo, great post! And thank you for highlighting innovation happening in Florida, and the importance of innovation for aging, caregiving, senior and active living for a very large segment of our population. Innovation is so important for all. - and thanks for the AskMarvee mention too!

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