The 100 Year Life by Lynda Gratton and Andrew Scott is about Living and Working in an Age of Longevity.
There are some interesting insights in the book, especially when considering financial planning for the long term.
Based upon a survey carried out in 2017 from the Human Mortality Database, the oldest age at which 50% of babies born in 2007 were predicted to be alive were:
- UK – 103
- US – 104
- Japan – 107
- Italy – 104
- Germany – 102
- France – 104
- Canada – 104
Compare this to 1914, when the probability that someone would live to be 100 was 1%.
In fact, looking back over the best data available since 1840 there has been an increase in life expectancy of three months for every year, equating to two to three years for every decade. When shown in graphical form, this increase takes the form of an upward straight line which shows no sign of tapering off.
So, based on this research, how long can you and your loved ones expect to live?
- A child born in 2007 has a 50% chance of reaching 104
- One born in 1997 has a 50% chance of reaching 101-102
- One in 1987 then the range is 98-100
- 1977 the range is 95-98
- 1967 the range is 92-96
- 1957, my birth year, the range is 89-94, meaning that I now have 27-32 years left!
What are the reasons behind this longevity?
The main impact comes from advances in medicine. I also think that a better understanding about our health wellbeing, such as the dangers of smoking and the importance of a good diet and regular exercise, has made a significant difference.
What impact does longevity have on our financial wellbeing? Well, we can be sure that we have to have a financial plan for a much longer period of time.
Traditionally there were three predictable stages through life:
- Education up to 16 , 18 or 21 (if you were in a small minority who went to university)
- Work from 16, 18 or 21 until 65 (once upon a time one job for life)
- 65 Put your feet up and retire (if you were lucky to reach this stage)
Today, there are still Three Ages, however the complexities in modern day life (that’s not to say it wasn’t complex in days gone by) we see mini stages particularly within 2 and 3.
People work for much longer, often at a number of different jobs. When children fly the nest, many rely on parents and grandparents to get on the property ladder. Towards the end of stage 2 and entering stage 3 people look for flexibility to carry on working but with time to try something new, travel a little, help out with looking after their grandchildren, realising and enjoying their dreams.
The services we offer are designed to bridge the range of life stages.
If you would like to build your own plan, we’d be delighted to help, simply give us a call on 01372 275098 or email us.