You might be glad, or shocked, to hear that old age is now not thought to start until 74. The Telegraph cites a report that considers the impact of an ageing population. The report from the International Institute for Applied Systems Analysis (IIASA) in Vienna claims that middle age extends a full nine-years longer. Rather than a 65-year-old expecting to live a further 15 years, the average is now 24 years. If you think 60 feels an excellent time to retire, then you will need to plan how you will live until you are 90.
There are lots of consequences of these additional nine years of middle age. The first is that you might feel you can work long into your life. It is certainly likely that the government will continue to stretch the pension age closer to 70 and beyond. Therefore, if you are in a job that requires physical exertion, such as PE teaching, you may need to come up with a plan B when you hit 60 plus. How could your career or professional life evolve to take account of your mind and body’s need for something less vigorous?
If you choose to retire, you also need to consider the financial limitations you may face when attempting to live the meaningful life you aspire toward. Are you confident that your income post-retirement will do more than just pay the bills? You are likely to want to travel or to take up new past-times in this period of life with no work but still enough vigour to experience more.
The straightforward takeaway
This gap between 60 and 90 is one that will require some thought. Feeling younger for longer offers tremendous opportunities, but it could also pose a threat. You have the chance to live this meaningful life away from the grind for a good 15 years beyond 60. However, could you afford it?
Then, you are still expected to live a further 15 years into old age and extreme old age. Do you have the funds to deal with the additional care you will need? This need to consider our long-term future may be challenging, and it is undoubtedly a conversation you might want to have with your financial advisor.
The content in this article was correct on 22nd August 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.