Thriving in 2024 :
THE BIG THINK :
Thriving in 2024 :
Solution-building for a multi-stage life
By Shaun Ruiters , PPS Investments CEO
In today ’ s fast-paced world , the landscape of financial planning is being reshaped by the significant leaps in life expectancy we are witnessing . This evolution challenges the traditional model of education , work and retirement , which has been the cornerstone of financial strategies for generations .
As we delve deeper into this transformation , it becomes clear that individuals , particularly graduate professionals , face a new reality where a multi-stage life journey is becoming the norm . This shift underscores the necessity for a comprehensive re-evaluation of financial planning techniques to accommodate longer lifespans and the dynamic nature of career paths today .
THE NEW LONGEVITY
The concept that the first person who will live to 150 years may already have been born , as Professor David Sinclair of Harvard Medical School suggested , is not just a theoretical assertion but a wake-up call for the financial planning industry . This claim is bolstered by data from the World Health Organisation , which indicates a significant increase in global life expectancy from 66.8 years to 73.4 years between 2000 and 2019 . In South Africa , this trend is mirrored with life expectancy rising from 51.37 years in 1970 to 63.62 years in 2020 , according to Statista .
Furthermore , research from Princeton University highlights a compelling trend among Americans : those with a college degree live approximately eight and a half years longer than those without . While not yet specifically studied in South Africa , this correlation between higher education and increased lifespan suggests a global trend where access to better healthcare and resources plays a pivotal role in longevity .
RETIREMENT AND BEYOND
With advancements in healthcare contributing to longer lives , people ’ s approach to retirement is evolving . Lisa Berkman , director of Harvard ’ s Centre for Population and Development Studies , notes a division in retirement planning . Some individuals anticipate a longer retirement period , while others choose or are compelled to extend their working years due to financial necessity . This divergence in retirement planning reflects a broader challenge : the need for financial strategies that account for a multi-stage life journey , encompassing potential career shifts , educational pursuits and personal development phases throughout one ’ s life .
ADAPTING FINANCIAL PLANNING FOR A MULTI-STAGE LIFE
The concept of adapting financial planning for a multistage life addresses the need to rethink traditional financial strategies due to increasing life expectancies . Unlike in the past , where the primary financial goal was often saving for retirement , today ’ s longer lifespans require a more comprehensive approach . This approach considers the likelihood of various significant life events and transitions beyond just retirement .
As people live longer , they are more likely to experience multiple career changes throughout their lives . This could be due to personal choice , industry shifts or the necessity to adapt to new technologies . Therefore , financial planning must now include strategies for
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