The notion of being retired after a hard life of work will be non-existent in the future. This was one of the premises put forward by Ric Edelman of Edelman Financial Services. He said that there is a strong possibility that life expectancy will be vastly extended. It means that most people will live up to 110 or even 120 years of age. It follows that there can be no financial plan which can last 60 years.
According to Edelman, the concept of retirement will cease to exist. He pointed out that retirement itself was an innovation of the 20th century. It was non-existent in the 19th century, and will not exist in the 21st century. Any able person will be able to work until he or she reaches 75 or 85 or even 105 years of age. There is nothing to worry though. It is not as bad as it currently sounds now.
Edelman said that a worker will want to work for a number of reasons. The first and primary reason is that people will be sufficiently healthy to work. He asserted that even a centurion can remain healthy as a 50-year-old. The person will be a viable economic participant and be a valued member of the community. The second reason is that it will be easier to make money than ever before. It will be made possible through the shared economy and the gig economy. Part time work will bring much-needed funds into the family coffers. All these monies will come by working only a few hours every day. A part time employee will even make $40,000 every year by simply working part-time. Making money will be a much easier affair. Retirement will thus be a temporary phase until the person wants to work again.
Sabbaticals are in
There is a name for such on and off kinds of work right now. They are known as sabbaticals. Everyone will go to school, and after completing education, get a job. After a few years at that job, then again back to school- to reemerge with a different career. This cyclical lifeline will be present for the entire life. The old linear lifeline will be gone. The cyclical lifeline will be engaged in learning, then employment and then leisure on repeating cycles as long as that person lives. Life, the author asserts, is going to be fun.