Retirement is becoming very different.
Are You Adapting?
In the past, people would work until they were perhaps 65, then retire and live off a combination of savings and welfare payments from the government. That worked well in the mid 20th century when lifespans were shorter, and you might only need to be supported by savings and welfare for perhaps 10 years.
Medical science has however extended lifespans; and while this is in many respects a wonderful thing; it has meant that the financial cost of supporting people throughout their old age, has increased dramatically.
Can we realistically expect governments to pay us welfare at the same annual rate for 30 years; that they used to pay for only 10 years?
If not , there are five possible ways that you might be able to survive:
1. Keep Working to a much older age
2. Have enough investments in place while you are young, to give you a strong income when you are old.
3. Be more Self Sufficient, so you simply don't need as much money to survive.
4. Be supported by your children or community.
5. Develop a career that lends itself to earning an income through business or freelance work as an older person
Any or all of these may work, but for them to work well, they are options that you need to lay the groundwork for, while you are still young enough to do so.
Consider the Career You Develop while you are Young
Some jobs lead to a dead end when you retire; while others have far more potential to offer you ongoing income for many years after retirement.
- If you own and run a business, you may gradually reduce the hours you work, through your old age, delegating work to a new generation; but still retaining an income as long as you live.
- If you work in a discipline where freelance work is common, and skills are valued, you may be able to scale down your work, but retain some income through long term, valued clients, for as long as those clients are still operating (eg. bookkeeping, writing, editing, gardening, and consulting, are just some of the jobs that may fit this situation).
When you choose what to study; and what to work at today; you will certainly be having an impact upon your future opportunities throughout you working life. You may however also be having an impact upon your future in your old age as well.
