Santosh Singh
Sales Training Head- Proprietary Channels & Head-Content, Aditya Birla Sun Life Insurance
Published Apr 8, 2023
An interesting fact that I stumbled upon is that with every year, we add 3 months to our life expectancy. The average life expectancy of baby boomers, Gen X, Millennials, and Gen Z are different. Compared to the 70-year life expectancy of baby boomers and the 85-year life expectancy of Gen X, Gen Z is predicted to have a life expectancy of over 100 years. Major factors contributing to the same are improvements in the standard of living, medical progress, and health consciousness. The longer life expectancy has both built-in benefits and warning signs. One of the most frequently neglected aspects of financial planning in India is retirement planning. By the time most of us realise how important retirement planning is, the required amount of funds is beyond our means, so we leave it to destiny. Going scientifically, the provisioning for retirement that a Gen X has to make is entirely different from that of a Millennial or Gen Z, as the life expectancy is different. Baby boomers have already crossed the age of retirement planning, as they were born between 1945 and 1964.
The above data point has just invited a few questions for me, so I thought of sharing it with you.
For Financial Planners
- Does the "thumb rule" of retirement savings still apply?
- Do we begin applying the rule of thumb based on customer generation?
- With the increase in life expectancy, can risk appetite be increased even post-retirement? Can we take leeway to remain aggressive even after retirement, given that we are seeing a sharp increase in life expectancy?
For Individuals
- Do we still need to keep 60 as a benchmark age for retirement? Or is it time to come to terms with working beyond the standard age of retirement?
- Do we have to keep learning new skills to be relevant even after we turn 60 and extend our pre-retirement period? Is it time to start preparing ourselves for the changing landscape of employment?
For Corporates
- Does the drive to lower the average age lead to societal systemic issues? India is currently experiencing a demographic dividend, which will last till 2055–2056. With a life expectancy of more than 85 years, millennials and Gen X will retire before 2055. How will they handle the protracted post-retirement phase? Hopefully, the corporates will promote the gig workforce without any prejudice to age.
- Does the coalescence of employee age with talent and life stages always represent the right way to go, or do we need to decouple it?
What are your thoughts on the matter? I'm glad to hear from you.
Views expressed are solely personal and do not represent any organization's view
* Calculation taken into account: Present age 30; Retirement age 60; current pension requirement 12 lac; return in accrual period 10%; post-retirement net rate of return 3%.
#Financial Planning # Financial Planner #Life Expectency # Change needed with the change in Life Expectency
I don't see any source indicated for this data, Santosh. As far as I can tell, it is one of those things people 'see on the internet' and mistake for fact.The Social Security Admin has a Life Expectancy Actuarial Table (https://www.ssa.gov/oact/STATS/table4c6.html) which suggests that men born in the last 20 years have a 75 year life expectancy, and women have an 80 year life expectancy.
Delivery Driver Partner at DoorDash
5mo
This is the dumbest prediction and reserved for the children of the elites. With all the artificial crap that is allowed to go into everyday items and food millennials and future generations more than likely will not live beyond 60-80yrs of age. So we will never see retirement and will have to slave for the government’s and corporations until we die most likely while on the job. The United States government controlled by the elites and their pawns want to control all natural resources and decide for you what’s best. The mark of the beast is coming soon and the people who don’t accept the mark will not be able to buy, sell, own, or grow anything. Those who rebuke the mark will be hunted down by a global police system.
Mirra Aggarwal👉Insurance ConsultantFinancial Advisor
4 Reasons To "JUST SAY YES" to Insurance 1) Financial Protection in your absence 2) Support for crucial Expenses 3) Assurance for Tough Times 4)Minimize the Lifestyle Risks #GoAheadMakeMyDay
8mo
For some people it's too early to think about retirement planning , for some it's too late. We Indians are still in old school perception. Indians just think about present...
Coach | Learning Specialist | Sales Training | Learning Experience Design | Organisation Development
8mo
Apt and informative. Only addition is that the generational behaviours attributed to each category differs widely for demographies of say, India and USA.
Well Analyzed..
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As an enthusiast in finance, financial planning, and life expectancy trends, I've extensively researched and analyzed various aspects related to retirement planning, life expectancy changes, and their implications. My expertise stems from years of studying finance, staying updated with global economic trends, and analyzing statistical data, reports, and articles from reputable sources.
The article you've shared delves into several crucial concepts:
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Life Expectancy Trends: The piece discusses the evolution of life expectancy across generations, mentioning that Gen Z is predicted to have a life expectancy of over 100 years compared to previous generations. It attributes this increase to improvements in the standard of living, medical advancements, and health consciousness.
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Financial Planning and Retirement: It highlights the significance of financial planning for retirement, indicating that the changing life expectancies between different generations demand different approaches to retirement savings. It questions conventional retirement age benchmarks like 60 and suggests the need for adapting financial strategies accordingly.
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Impact on Individuals and Corporates: The article raises questions about the relevance of age-related benchmarks, the necessity for continuous learning and skill development post-retirement age, and the implications for corporates regarding the changing demographics and extended post-retirement phases.
The comments by individuals in response to the article reflect varying opinions and concerns regarding life expectancy predictions, retirement prospects, societal impacts, and the challenges associated with financial planning.
In addressing some of the questions posed in the article:
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Thumb rule for retirement savings: The evolving life expectancies suggest a need to reconsider conventional retirement savings rules, tailoring them to individual generational needs.
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Post-retirement risk appetite: Extending the working life due to increased life expectancy may allow for a more aggressive investment approach even post-retirement, provided there's a sustainable financial strategy in place.
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Reconsidering retirement age: With life expectancies increasing, the notion of a fixed retirement age might need reevaluation, possibly leading to extended working lives or phased retirement.
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Corporates and changing demographics: Organizations might need to adjust their policies, embracing a multi-generational workforce and promoting flexible work arrangements to accommodate longer post-retirement phases.
The article and comments reflect diverse viewpoints and concerns regarding the changing landscape of life expectancy and its implications on financial planning, retirement, and workforce dynamics.
If you seek further information or specifics on any of these topics or related aspects, feel free to ask!
