The Price of Business Digital Network has a new series of outstanding commentaries from thought leaders. This is one in that series.
Jonathan Grimm, M.A.
Financial Advisor
Founder, Tend Financial
For much of the history of the world, there was nothing similar to what we broadly think of as retirement.
That’s startling to most people who hear me speak or read my book, but it’s true. Our current dream of everybody sailing into a golden age at 65 is a relatively new idea. I explain the origin story of this dream in my new book, The Future Poor, but to summarize it quickly: For most of history, such a dream did not make sense, because people died way too young. In the 1890s there was an effort to unclog an entire workforce to make way for younger adults by pushing older workers out of their jobs. Then, our current myth of a rosy retirement really blossomed after WWII.
The dream seemed to be working—for a time.
The early adopters left their jobs—and the system worked because those retirees did not live nearly as long as we live today. In fact, this history is fairly somber: It is new. Its origin began as an idea in the 1890s to unclog the workforce. The idea grew to what we now think of as “retirement” after WW2
It worked, for a time.
Millions of us still dream of this mythic land of retirement. In fact, a huge number of Americans still think of it as a kind of promise. But we are now at the point where the entire system is falling apart for a series of reasons that I explain in less than 200 pages in my book, but in this short column you’ll have to trust me: Our increasing life expectancy, changes in company policies, government policies, inflation and underlying flaws in the financial system are soon going to produce what I call The Future Poor.
Because I feel it’s my professional duty as a financial advisor, to be honest about this looming crisis, I am now using all of my available platforms to turn things around—because I do believe that we can together change this picture of widespread financial disappointment.
And, again in the catch short-hand that I hope sticks with my readers and listeners, I’m calling it “not retiring.”
Before you throw up your hands and start thinking of a critical comment to add, let me explain at least “5 Reasons Why Retirement Is a Bad Idea.” In my book and in talks about The Future Poor, I have a whole lot more than 5 reasons to share, but these five should make you think and may move you to take a proactive step to learn more—now.
- Retirement is expensive. The old math of the 1980s was to have 6x or 8x your salary saved. If you are under the age of 50 and planning for traditional retirement at 65, you will need at least 25x of your income to scrape by and probably 50x to be safe. For most people that goal is financially impossible.
- Retirement is long. Back in the mid-20th century, retirement was relatively short. Now, it is 20, 25, or 30 years—which raises crucial questions folks did not have to worry about in that earlier era. What do you do for all that time? How do you ensure you don’t run out of money? Who is going to care for you when you are super old?
- Retirement is unhealthy. It’s true. There’s a lot of research piling up that suddenly changing your life by leaving your workplace, cutting daily ties to colleagues, and reducing the pace of your life leads to unhealthy outcomes.
- Retirement is lonely. I know: I’m piling on the somber news, but it’s a truth emerging from lots of studies of aging in America. Public health researchers tell us that loneliness and isolation are the No. 1 reason for a decline in health, well-being, and longevity. You even have a higher chance of developing cognitive challenges and mental health issues if you “retire” in the old-fashioned way.
- And, even better, “Not Retiring” is fun! This may be a truth you’re not ready to accept and I understand that skepticism. However, the data are overwhelming, including the high job satisfaction among men and women who continue working after 65.
I could go on. I could list 10 reasons—but the most important thing you can do right now is to think about the jolt I’ve provided in this column. I’m busting a number of myths here in a handful of words.
Think of this as an introduction to the “Not Retiring” movement—millions of Americans who are loving their ongoing activity and connections with neighbors, co-workers, family, and friends.
My name is Jonathan Grimm, and I am the only Investment Advisor helping you Not Retire. You can connect with me and learn more by visiting thefuturepoor.com and listening to my podcast What’s up with Money?!
Upcoming book publication: https://www.thefuturepoor.com
What’s Up With Money?! on Instagram
What’s Up With Money?! on Apple Podcasts
What’s Up With Money?! on Spotify
Watch this: The Future Poor Short on YouTube
For more great lifestyle content see here.
LISTEN TO THE INTERVIEW IN ITS ENTIRETY HERE:
