Retirement as a broad viable concept only started making its way known in the developed countries of the western world near turn of the last century. In 1883, Chancellor Otto Von Bismarck of Germany announced that he would pay a pension to any nonworking Germans over the age of 65. That was the good news, the bad news was, that at the time hardly anyone lived to the age of 65!
A lot has changed in the world since the 1880’s, the country with the highest life expectancy is Japan at 83,7 years. Most developed countries have an average life expectancy of above 80, this means that over half the population live longer than the average. In a strange phenomenon and in order to create jobs for the up and coming youth, the early retirement age has dropped to 60 in many countries.
Let us assume that a person starts productive work at 25 after they have studied and had a gap year or two. They then acquire their first home and other assets, not to mention starting a family, and at or around about 35 they seriously start having some decent disposable income to become saving for retirement, and have the lofty ideal of retiring at 65. Should these folk be of fairly healthy disposition and are lucky enough to stay healthy, they have every chance of living to 90 plus. Barring the very few fortunate and successful entrepreneurs that hit the big time, it is impossible to save a portion of your income for 30 years in order to fund a retirement span of 25 plus years! Inflation, together with increased medical costs and mobility in one’s old age make retirement at 60 or 65 years of age a fanciful dream for most people.
Yet, the financial planning industry and many advisors have not taken these changing demographic trends into account and still stick to somewhat archaic principals that should by now be extinct. This does not mean that one should not save at all or not have a financial plan or strategy, in fact it is even more important to ensure that any savings are productively invested. Tony Barrett believes in a whole new paradigm of financial and retirement planning that takes all factors into account and develops and plan and strategy for each individual’s unique needs and personal circumstances.
Make contact with Tony to ensure your plan is relevant and appropriate.