People are so wired in short-term thinking that it becomes difficult for them to plan for the long term.
Andrew J. Scott, author of the new book The Longevity Imperative: How to Build a Healther and More Productive Society to Support, says, “Don't think too far ahead and take steps now that will benefit you far into the future.'' I feel it is difficult.” our long life. ”
“But this doesn't mean sacrificing your early years in exchange for a healthier, more prosperous later life. Do you want to take a vacation and travel now? Or work another year afterwards? ”
Below is what Scott recently told Yahoo Finance about why people need to take seriously the possibility of living longer, edited for length and clarity.
Andrew, why did you write this book now?
This topic is still not well covered. That's a tendency we think is wrong. We focus too much on aging societies, but aging societies are always fraught with decline and problems. And I think we need to focus on the new reality. That means young middle-aged people are expected to grow older, and 50% of children born in the United States are expected to live into their late 80s to early 90s. Therefore, we must seize the opportunities presented by living longer. It's not just about living longer, it's about being healthier and more productive for longer.
What does the phrase “longevity essential” mean?
First, we are now likely to be quite elderly. Previously it was a minority outcome. Now that's the majority. The second thing is that we fear getting old. We worry about our health, finances, skills, relationships, and sense of purpose for longevity. Combining the two gives us the instruction. What are you going to do now to maximize your chances of aging? You can change the way you age when you're 80, but it's much slower when you're 50, 40, or 30. It gets easier.
What is the difference between an aging society and a longevity society?
An aging society is always a negative. The focus is on decline and the end of life. In our society of longevity, we are told that you still have plenty of time. What do you want to do with that time?
So how do you pay to live longer? And what does this mean for our careers and how we manage them?
We need to stay productive longer and work longer. And it's very difficult to sugar coat that pill. I have to think about how I can work for a long time. And of course it's about your health. It's a matter of your skill. The type of job you have is also important. Can you continue working in your current job? Will your company support you? And do you want to continue working longer? Should I consider a major career change now because I have to think about working for a long time? This is not just an abstract concept. It's a very real problem.
How do you combine them to achieve great aging?
In the 20th century, we created three stages of life: education, work, and retirement. And the jobs often had linear career paths. You probably won't go through these three stages of life right now. What we should start doing is spending more leisure time on this side of retirement.
So your last job may be part-time or you may take a break from your career. Maybe you'll start working later in life. Your career may have several stages.
In some cases, you may work hard just thinking about money. The rest of the time is spent caring for family, parents, and children. You will have a multi-stage life with different objectives. And I think that's where the confusion comes from. There may be times when you don't make as much money as you used to, and that's okay. Find a job that suits you more. You used to be in charge of things, but now you may not be. But it's okay. It's okay to make less money every now and then, as long as you continue to earn it over a longer life. The amount of money you earn over your lifetime is more important.
read more: Planning for Retirement: A Step-by-Step Guide
Should I retire? Should I retire?
I think retirement is long gone. The idea that everyone hits a hard stop at the same age is already gone. Some people work full time, some part time, some retire, and some never retire. People age in very different ways.
If we are going to live longer, what should people think about their financial behavior?
This is a really complex issue. I wish I had a simple answer. It's about taking control of your career and developing the skills to stay on the job. And I think that's the key. Because no matter what shocks happen – life is full of shocks. We are living longer lives, but there may be health shocks, divorce shocks, job shocks, etc. And once you have the human capital to go out and earn money again, a lot of your economic problems will be solved.
I thought the statistics on who actually benefits from the longevity bonus would be interesting. What's behind it?
We all want to slow down aging, but we've discovered a way to accelerate it: poverty. To me, it's the biggest indicator of how we age. It's important to recognize that life expectancy in America is highly dependent on exactly where you fall on a formidable spectrum of social status. The difference in life expectancy between the richest 1% and the poorest 1% is 15 years for men and 10 years for women.
What intangible assets should we consider in our economic life?
We have a lot of time in our long lives, and how we use it at different stages of life is important. Money is the means to achieve that. Many people feel anxious about financial planning because they are not familiar with numbers. But everyone takes time to plan every day. First of all, I need to explore what I want to do with my life. When do you want to work? What do you want to do in retirement? Living longer and just working longer will solve your financial problems. But it doesn't solve the real problem.
You need to think about whether you are investing in your productive assets – the human capital, skills and knowledge that will allow you to continue working as you wish. Next is vitality assets. And these are divided into two types. It's your health and friendship. Health here means physical and mental health. Finally, the ability to cope with change.
It all boils down to the idea that the key to a better, longer life is relationships and relationships. Could you tell me more about that feeling?
I'm an economist. We talk about health, science, and economics. Despite the technocratic side, why do we want to live a good life and what makes it a good life? We are social creatures. And learning this, I learned that if I really want to be happy and fulfilled, it's in relationships.
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