Longer Lifespans Are Making The Traditional Idea Of Retirement Antiquated

Advancing healthcare technologies are rapidly causing the average life expectancy to expand, causing the retirement model of the 20th century to become antiquated.  People in the past often lived linear lifelines, “they were born, went to school, got a job, retired and then died.”  When average lifespans were shorter, a person could retire at 65 and expect to live out the remainder of his or her years on social security and investments.

Future lifespans will be more cyclical than linear.  Going back to school multiple times to start new careers will become more commonplace.  Instead of retiring, people will take rest periods or sabbaticals before starting a new career path.  With advances in robotics expected to replace many of the jobs that exist today, people will need to be retrained for the jobs of the future.  Financial advisers will also need to adapt to these changes in life expectancy.  Instead of helping clients plan for retirement, they may need to act more like a high school guidance counselor advising clients on choosing new career paths. 

See Rick Edelman, Longevity: The New Paradigm In Retirement Planning, Financial Advisor, June 1, 2015.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.