A top financial adviser says the notion of retirement is gone - here's what he thinks people will do instead
Ric Edelman is the founder and executive chairman of Edelman Financial Services, one of the nation's leading financial advising firms, and author of the new book "The Truth About Your Future: The Money Guide You Need Now, Later, and Much Later." Ric says the notion of retirement is gone. Following is a transcript of the video.
The notion that you're born, go to school, get a job, retire, die. That's gone. You're not going to do that anymore.
Life expectancy is most likely going to be extended dramatically, meaning you may very well live to 110 or 120. The notion of retiring at 65 and living 120 there's no way you're going to be able to afford a life of leisure for 50 or 60 years.
The notion of retirement is gone. This was the 20th century innovation. It didn't exist in the 19th century and it's not going to exist in the 21st century. You're going to work until you're 75, 85, 95, 105. And don't worry about it. It's not as horrific as it sounds. Because you're going to want to do that.
You're going to want to work for two reasons. Number one: you're going to be healthy enough to do it. You're going to be as healthy at age 100 as you are at age 40 or 50, and that means you're going to want to remain viable and a participant in the economy and in the community to be a valued member of the community.
Second, it's going to be easier than ever to make money thanks to the shared economy, the gig economy, the notion of part-time work, working through the internet. It's going to be easier than ever to earn a living. You're not going to have to work 40 or 50 hours a week, and you're not going to have to make 100 or 200 grand a year to do it. You'll be able to supplement your income, 20, $30,000, $40,000 a year working on a part-time basis doing whatever you feel like doing. It's going to be easy to make money, and that means instead of waiting until you're old to retire you're going to be able to retire early and often.
We call them sabbaticals right now. So you'll go to school, you'll get a job, and then you'll take a couple of years off, go back to school, and emerge with a totally new career.
And you'll do this cyclical lifeline frankly for your entire life. So the notion of a linear lifeline is gone. Instead it will be a cyclical lifeline where you will engage in learning, employment, and leisure on a repeating cycle for as long as you live.
It's going to be fun and it's going to be enjoyable and it's going to be beneficial for the community as well. What's not to love?