The end of retirement

September 14, 2017

I read a book. Not just any book. I read a business book. I buy business books every now and again, and read them less frequently. I have a small pile of unread business books going back several years. The truth is I don’t much enjoy reading business books. I find they rarely have much to say that justifies the time it takes to go through them, for a slow reader like me at least.

However, for a reason that defies any logic given what I’ve just said, I recently joined a reading group for career consultants and the first book we agreed to discuss was The 100-year life by Lynda Gratton and Andrew Scott.

I’m pleased about that because I found it full of interesting ideas, some of which I have been considering myself for a while, which meant I felt simultaneously flattered that my thoughts rank alongside those of the authors of a Financial Times business book of the year shortlist maker, and frustrated that I didn’t write the thing first. It would possibly have been the first business book that justified the time it took me to read.

100YearLife

I won’t offer a review because there are many available.  Instead I’ll pick up on the overall theme of the book, because it encapsulates much of my thinking about careers as we look to the future.

The essential premise is that as we live longer people will no longer conform to the Education – Work – Retirement pattern for a number of reasons, primarily economic.  Instead people will transition between periods of different uses of their time.  They will dip in and out of education throughout their life, they will spend chunks of time across their life in a range of different careers, they will spend periods of time travelling, or raising a family, or focusing on charitable activities. These are not mutually exclusive.  More and more people will work part-time while volunteering or engaging in other personal pursuits.

The challenge for society will be how it adapts to this model. Apart from the obvious question about how pensions will be funded – a problem we are already struggling with – we also need to consider when state pensions will be available to a person if they are potentially going to be economically active for blocks of time with an undefined end point?

It seems obvious that people will need to save more when they are working in order to fund the time when they are not working, and the big implication here is that people will be working for many more years, overall, than they do now. We will, perhaps, be working well into our eighties, and this suggests the most profound shift – that society will be forced to re-think its current narrative that people are no longer of value to the economy after a certain age.

Retirement at an early age is, as the authors point out, a fairly modern concept. It turns out that it is probably a historical blip and that most people will work for as long as they have capacity to do so. In the past the amount of time that elapsed between retirement and death was just a few years at best. In the future we will probably have the same number of years between our last stint in employment and death.

 

 

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