The End of Retirement as We Know It – Executive Summary
By Michael Nuschke
The End of Retirement As We Know It
This Executive Summary gives you the key points of the full 40-page report of the same title. (see link at bottom) NOTE: this report is currently being updated. Check back soon for the download.
We face a Retirement Planning Conundrum;
Most of us have some interest in achieving financial independence – that is – having enough financial assets and sources of income to support our desired lifestyle so that work is optional. Yet we are faced with a challenging set of unknowns;
Current Unknown Resulting Question
| Gov’t Debt & Economic conditions creating much uncertainty re ability to pay pensions | How much can I count on government funded retirement income? |
| Gov’t support for health care in question given aging population, and Gov’t Debt loads | How much will I need to pay for health care costs? |
| Spiraling global Gov’t debt-loads creating chaos with investment safety and returns | With super-low interest rates and possible huge economic disruptions, how can I invest wisely? |
| Life spans are going up AND inflation may surge based on massive Gov’t money printing | How will I ever know that I have enough to retire with some level of security? |
The financial risks we face in retirement include; cost-of-living inflation that reduces our ability to afford a decent lifestyle, outliving our savings, incurring large medical bills, losing money on investments, and an inability to save enough while working. As a long-time retirement planning advisor, I have worked with hundreds of people to help them reduce these risks as much as possible and to plan for a financially secure retirement. However, there is something new on the horizon, that could be an even bigger threat, OR a life-saving opportunity.
Technological advances are quickly bringing a new set of forces to the fore. These forces significantly add to the retirement planning conundrum and are not yet even being discussed in my profession. Along with these new factors, this means that most – if not nearly all – retirement plans are bound to fail or are woefully full of hidden risks. It is time to wake up and adapt.
Retirement planning is about planning for your future. The future has always been hard to accurately forecast but nothing has prepared us for the dramatic changes of the next 30 years.
The accelerating speed and power of technology will have dramatic impacts on;
- Life spans – during the next 20 years, I believe medical advances, primarily in biotechnology and nanotechnology, will expand our healthy life spans to 120 years+
- Jobs and businesses – Advances in robotics and artificial intelligence will have dramatic impact on employment and on which businesses survive
- Investments – Economies, industries and our investments will be dramatically impacted.
- Pensions – Longer life spans and radical economic and market conditions will impact pensions dramatically Changes from governments and institutions will be too late
Essentially in every crucial area that retirement planning makes assumptions, dramatic changes are coming. I believe that how we think about and plan our retirement is about to be completely undone. This is “The End of Retirement As We Know It”. We need to start over with a new framework of how our world will unfold, and what that means to our life.
The same forces that create disruption also are creating the basis for remarkable new ways for society to emerge stronger. (Exam: Think of “3D Printing” and the impacts it will have on manufacturing, labor, and the cost of goods.)
“RetirementSingularity.com”, the name of this blog, focuses on emerging trends and practical strategies to help cope both personally and financially with this radically changing world.
The expanded 40-page report offers a “6 Step R.E.C.I.P.E.” as a guide to work with this new super-conundrum. The 6 Steps I believe will be crucial to employ in the future are;
1) Reframe “Retirement” – much of the conundrum is in our outdated assumptions
2) Elevate Health-Related Activities – live long enough to make the cut
3) Create Streams of Sustainable Income – keep adding to a diversified set of incomes
4) Invest in Your Human Capital – living longer and healthier means that YOU are your biggest asset
5) Plan Your Next Livelihood – take up the challenge to create your new livelihood and make it fun
6) Enlighten Yourself & Others – better to be clear about what is truly meaningful. The world needs our help!
The report ends with a list of action steps in four key areas; Health Planning, Life Planning, Investment Planning, and Retirement Planning. While this future may seem “out there”, the notion of just waiting to see what happens is not recommended. We must become aware and remain alert to be able to adapt and therefore survive and even thrive. Your financial future and the future of your life depends on taking steps now to prepare for the changes that are coming all too soon!
LINK to Report Download Here; The_End_of_Retirement_As_We_Know_It_v4.pdf
NOTE: this report is currently being updated. Check back soon for updated report.
Live long, live well and prosper.
Michael Nuschke
