The Evolution of Retirement Age: From 65 to 70 and Beyond

The concept of retirement at the age of 65 has its roots in the 19th century, a time when Germany's Iron Chancellor Otto von Bismarck introduced a social security system to cater to the German working class. This age was strategically chosen not only to appease the working class but also to challenge the growing power of the Socialist Party in Germany during the late 1800s.

Historical Context and the Selection of 65

Bismarck's decision was rooted in the average life expectancy of adults in the 1930s, which was 65. At that time, the average expected life span in Western countries was also around 65. However, pensions were introduced in the 1880s, and these benefits were seen more as a gift for those who were still alive than a right. This thinking is reflected in the remarks of the eminent William Osler, a Canadian physician, who believed that a man’s best work was done before the age of 40, and by the age of 60, one should retire.

Life Expectancy and Changing Expectations

The life expectancy in many Western countries has soared in the past 80 years, increasing from less than 40 years in 1543 to around 80 in 2015. This significant increase in life expectancy means that the retirement years now often last nearly as long as the ‘standard’ working life. This shift has led to a mismatch in expectations between corporations and governments, who have historically paid for retirements that were expected to be shorter, and individuals who are expected to save and work longer to cover a potentially longer retirement period.

Evolving Career and Retirement Narratives

As life expectancy has increased, so have the challenges and expectations placed on individuals. The traditional view that one's best work is done before the age of 40 is evolving. Modern workers are now considered masters of their own careers, with the flexibility to choose how long they work. Corporations are also recognizing that the idea of employees being the only ones tied to a career is a 20th-century phenomenon. Retirement is now perceived more as a gift than a right.

Challenging Assumptions for a Sustainable Future

With these changing dynamics, it is imperative to challenge the basic assumptions about retirement and make new ones:

We may have 45 years of retirement rather than the previous 15, depending on the nature of our work. We can choose our working career paths and the extent to which we work. Retirement is a gift, not a right, and the focus should be on enjoying life and choosing fulfilling work. We should support local businesses by buying goods and services, ensuring our money goes to fund local communities. Marketing messages pushing unnecessary product upgrades should be critically evaluated, and spending should be personal and prudent.

Personal Reflections and Future Outlook

While the current system may seem unsustainable, it is clear that we need a more balanced approach to retirement. Not everyone can generate the savings from career choices, and those who serve disadvantaged communities should not end up disadvantaged themselves. Ensuring that all individuals have sufficient financial security in old age, when their bodies may be breaking down, is crucial.

On a personal note, I plan to continue working until my 80s, gradually slowing down after that. Even in retirement, I expect to have about 20 years to keep myself occupied and engaged.