If medical scientists are right, people are going to live much longer and healthier lives. So what does this mean for your financial future? For one thing, you will need enough money to enjoy your life. On the bright side, you’ve got more time to figure out how to do it.
Ric Edelman, author of “The Truth About Your Future: The Money Guide You Need Now, Later, and Much Later,” says even if you’re in your 50s and 60s, you have plenty of time to change course. Retirement at 65 is a concept that belongs in the 20th century, he says.
“One reason people retire is because they become unable to do their job physically or it’s become too dangerous; for example, airline pilots and law enforcement have mandatory retirement ages,” he said.
But as medical advances improve health and longevity, Edelman says people can expect a more cyclical life trajectory.
“People will go back to school to retrain, take a break and then return to the workforce, and that cycle will repeat itself more than once,” he said.
There are four areas where this paradigm shift will have the most impact.
Career planning. The type of work and how long you will be in the workforce are two of the biggest changes people will face as they live longer, healthier lives, Edelman says.
“For a great many people, the career you’re currently in is not the one you’re going to stay in, because automation and robotics will eliminate half the current occupations in 10 to 15 years,” he told IBD. “Other jobs will be created, and that means you have to engage in lifelong learning to remain viable in the workplace.
“You’re going to have to continually retrain yourself,” Edelman said, “and that’s true for 20-year-olds and 50-year-olds.”
Financial goals. If you’re going to live longer, you’re going to need more money. The constant retraining comes at a cost.
“You will need to figure out how to maintain your lifestyle while you interrupt your earning to learn new skills,” Edelman said.
Fortunately, continuous learning…