It’s crazy how our retirement age of 65 is laid down for us. An outdated concept which dictates to us when we should give up working and be put to pasture. Over the past century we have improved our life span dramatically making 65 a much younger age than it used to be.
The Queen of England celebrates her 90 birthday this year. Singer Vera Lynn the wartime sweet heart turns 99. Nelson Mandela lived to 95. Harriet Thompson became the oldest woman at 92 to finish a marathon.Think of how many more people you know and hear about that are 90 plus. They say that the first person to reach age 150 is already born!
All this points to the fact that we are living longer and need to take a reality check on our concept of retirement. Over the past decades technologies in the medical field and general awareness of health issues have boosted our longevity. Yet we still have the mentality of retiring at age 65. Why? Because your pension fund says so?
90% of South Africans at age 65 do not have enough savings to see them through retirement. The reality is that they will need to continue to work for as long as possible. This places huge importance on staying healthy to keep on earning an income and intern leaving your investment nest alone for longer.
Working longer has many benefits.
You have longer to save allowing your investments more time to compound their way to a much bigger amount. The amount needed will be that much less to see you through the rest of your life as you access your funds later in life.
Most importantly, you will have a sense of purpose and fulfilment. A reason to get out of bed in the morning. Work tends to define us, so you will have the opportunity to redefine yourself and do something that you really enjoy that’s generates an income.
So 65 as a retirement age is a fallacy. Don’t let an outdate concept rob you convince you that you are over the hill.
If you didn’t know when you were born, “ How old would you be?”