The Path To Non-Retirement

The human lifespan is getting longer and longer. What does this mean for those who are putting money away for retirement? And can you imagine doing the same job for over 70 years?

- Deon Gouws

When I started a career with one of the Big Four accounting firms in the late 80s, my new employer arranged an induction programme in the first week. One of the presentations was from the head of the Personal Financial Planning division, who opened with the following line: “In 40 years’ time, 15% of you will be dead – and they are the lucky ones!”

What he was referring to, of course, was the very real risk of outliving one’s money – especially in the context of speaking to a bunch of newly qualified professionals with a relatively high propensity to consume.

Fast forward the better part of 30 years, and this financial health warning could not be any more apt today.

First, we are all likely to live even longer than previously anticipated. With healthier lifestyles in the West, combined with a multitude of advances in the medical field, studies show that life expectancy has increased by some three to five years over the last three decades alone (the exact number being influenced by a number of factors, including country of residence and gender).