1 and why corporate HR need to act now Trends 2060

2 We are living in a beautiful World!

3 Contents 1.Trends Impact of ageing for corporate HR 3.How companies can deal with ageing 4.How AEGON can help

4 In 2060 The World will look different to now 2011 we are living in a most exiting period of time There is need for action now !

5 Trends 2060

6 2011: ~ October 15 th 7 Billion people will live together on one World! Quelle: www.weltbevoelkerung.de

7 3 billion more till 2060! Since 2007 the 0 to 15 years old remain stable

8 Ageing populations rising globally… Average Life Expectancy (in years)

9 …and a sharp decrease of the working population Shifting Proportions: Under/Over 60 (PERCENT) < ~85% ~15% ~60% ~40% Japan, Korea, & China ~80% ~20% ~70% ~30% Europe & North America

10 …resulting in more pensioners and less people of working age

11 The World is shifting Europe`s weight had been 21.6% in 1950, in 2011 it shrunk to about 10.5%, and in 2060 about 5% of World`s population will remain living in Germany. (Germany: th biggest country – in 2010 down to 16! In 2060 India will be the largest country of the World, Asia will have 53% of World`s population (Europe ballpark 7%) In 1950 Africa had half of Europe`s population – in 2060 it will have 3 times as much as Europe will have.

12 Companies need to act Deliver goods that are needed in growing markets (Including water in drinking quality, nutrition (“staff of life”), energy, technology... Produce in growing markets (avoiding costs for transportation, CO² emission; offering jobs and income) Bring experts to the growing markets (rising mobility) with sustainable learning and training

13 Increasing unbalances will not be sustainable! Neither interregional Nor cross border Nor intercontinental Nor intergenerational Immigration from poorer countries will increase pressure on richer regions

14 Impact of ageing If too few Young have to pay the pensions for too many Older- the Young might leave.

15 Age-related expenditure will cost the EU27 4.7% more of GDP by 2060 Pressure on state pensions Governments need money for infrastructure – State deficits are too high to stabilize level of state pensions

16 Corporate pensions more important State pensions cut back Increase pension age Decrease of pension payments Increase pension contributions War on talent to attract and retain employees Education Children’s care Corporate pensions

17 The need for a balanced globe will more and more come to foreground! Enterprises with social responsibility across borders and intergenerational will distance oneself positively! CSR: Corporate Social Responsibility

18 How companies can deal with ageing

19 Challenge: In 2000, the number of people aged 60 and over was 650 million. By 2025 this number will grow to 1.2 billion, and by 2050 to 2 billion. At this time, roughly one-third of the global population will be in the category traditionally considered "elderly," and for the first time in history, this group will outnumber children.

20 Design and implement a pension strategy for the future DB plans – promises and risk If DC is the future, you need to strengthen it De-risk where you can Develop “Opt-Out” models

21 How AEGON can help

22 How we can help you Our clients are faced with ageing and longevity issues Mortality and longevity are natural offsets… to an extent As co-founder of the Global Coalition on Aging, AEGON approaches ageing in a more positive way As a provider, we offer a suite of de-risking solutions

23 Retirement for all employees locals expats

24 Executive Summary: What will be the need for corporate?  Demographic change, governments deficits, lack of skilled, talented workforce and individuals’ lack of knowledge will change the role of corporate for pensions.  Starting with a new remuneration package now (at least for new entries and new expats) to build up additional pensions for tomorrow!  Develop “Opt – Out” models, wherever possible  Changing or adding information and communication tools  Use “CSR” as an advantage

25 Thank you This presentation contains general information only and does not constitute a solicitation or offer. No rights can be derived from this presentation. Please be advised that any fees, performance and/or cost indications in this presentation are for information purposes only. AEGON Global Pensions, its members and any of their affiliates or employees do not guarantee, warrant or represent the accuracy or completeness of the information contained in this presentation.