It is like a miracle to live beyond the century mark in the past but it is no longer a rarity in today’s world. Japan have the tradition of giving a small swallow bowl made of silver (silver sakazuki) to celebrate those who have reached this grand milestone. It is meant for a ceremonial sip of the sake. Soon after, there will even be a letter of commendation sent to them from the Prime Minister.
Given the numbers reaching beyond 100, the government is looking to downgrade the award. Currently, the centenarian population stands at 86,510 in 2020 as compared to 153 when the records started in 1963.Â
100 Year Life
Recently, we just completed reading the 100 Year Life by Lynda Gratton & Andrew Scott and have gained useful insights from their work. What is notable would be if you are in your 40s, there is a 50% probability you will live to 95 years of age. If you are in your 20s, there is a 50% probability you will live to 105 years of age.
What it signifies is that being a centenarian would be a norm rather than an outlier in the future. It brings us to a great paradox of what it entails to our life, society, economy and social structure.
The thesis of the authors of why life could prolong would be based on a 3 pronged approach:
- The evolution of Medical Research started on a more serious note from the 1900sÂ
- Gene editing technology that could help us revive our body system
- AI and Robotics advancement that could assist us with robotic body parts
3 stages of Life Cycle
The conventional 3 stages of the life cycle could also be drastically changed where Learn, Work and Retire could be a thing of the past. With a longer life cycle, we could prolong our Learning stage by experimenting with different experiences before we embark on a steady career.
The one employer till retirement notion would also be very unlikely where a typical individual could expect to have many different jobs and in different industries during their career work span. So the need to adapt, upgrade, reinvent and cross-train constantly would be expected in order to thrive in the new dynamic work environment. Of course, we are expected to work longer and even to 80 years of age if our mortality is 95 and beyond.
The norm in the future would be 4 generations in a family structure, and it is a structure that would need some getting used to. As the life cycle increases, the grandfather could be holding a similar job to the grandson and the 3 stage cycle would be not so straightforward (there will be cross over for the different stages)- the older generation could revisit the Learning cycle or take up a new entry-level job after their upskill efforts.
So is this a Curse?
It really depends on your perspective but the need to learn how to invest well would be critical if we are able to live to 100. I am sure not many would want to work till 80 and so through your investments, hopefully, it provides a constant cash flow that would assist you in your finances at the latter stage of your life.
A balanced portfolio using ETFs could be the way to start off, as you won’t face total annihilation through investing in meme theme stocks. It helps with an additional property fully paid, it could give inflation hedged returns to supplement our income during our retirement days.
If our forecast of a universal basic income does come into fruition, that will be another useful source of income.
In order to prevent burnout, the authors have suggested a 4 day work week which would be more sustainable given our working life will be much longer. Sabbaticals would also be more common. The excess time out could be used to go for courses to reskill and build up our market value so as not to be obsolete.Â
Our Take
Our take of living to 100 years old is we have to plan to live well (Having meaning to life and by adding value to society), be healthy (exercising, meditating and good diet), be happy (Learn to be zen and have a positive mindset) and have a good financial sense (Building up a sound investment plan- Balanced Portfolio and Adequate Insurance to cover the medical expenses); living to 100 years of age might be a great joy. Looking forward to it!
Disclaimer:
The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. The content is not directed to any investor or potential investor and may not be used to evaluate or make any investment. Do note that this is not financial advice. If you are in doubt as to the action you should take, please consult your stockbroker or financial advisor.
