People are alive today that will live to 150 years of age!
What does that mean to you…your career…your financial resources?
Our aging process is expanding longevity thanks to better health care, modern medical advances, and better physical conditioning. As typical lifespans move toward age 100 and beyond, let’s consider the impact on the significant factors of how we live our lives.
In my dad’s era…you would educate yourself, get a job and work, retire around sixty-five…maybe even have a pension, then live another twenty-five to thirty years then pass. Current men and women at retirement age may face longer lifespans giving more time to work and save longer if they choose.
Careers may go through an encore phase will where workers may gradually reduce their hours and be more selective about the roles and projects best suited for them and their employers. With today’s shortage of skilled talent…this trend may be a win-win for both the worker and employers. Workers can phase into a life with more free time and still feel they are using their wisdom and talent to do something meaningful. Employers then may be able to be more selective and have more adequate time for the next generation of employees to be trained and gain experiences. Benefit packages can be modified to satisfy needs on both sides.
Financially an extended career can enable more funding for a financial future that may be more challenging given the reduction of pension benefits, increased health care expenses associated with increased longevity and extra resources to enjoy an expansion of free time and life experiences that are a nature progression of increased longevity.
From a financial planning perspective, you simply have to run the numbers, elongate the time frame to make sure your plan works with periodic adjustments along the way.
Please let us know how we may help!
Sources:
Homo Deus by Yuval Arari
The Longevity Economy by Joseph Coughlan
The New Retirementality by Mitch Anthony
The New Post-60 Career Paths, The Wall Street Journal, by Lisa Bannon 2-6, 2022