How Long Do You Expect to Stay Financially Productive?

More than half of currently-in-work Americans say they don’t have enough saved for retirement, and those who are closest to traditional retirement age are those most likely to say they’re just not ready (financially speaking) to retire yet. There are a few reasons for this, including the phenomenon whereby people think they need more money than they actually do to retire in comfort.

There are however, other reasons, including the global cost-of-living crisis which has led to rising prices for almost everything, but especially certain non-negotiables, such as housing.

So what does this mean? Will people retire in poverty? Change their expectations (and lifestyles) as they head into retirement? Or will they simply remain financially productive much longer than we expect them to? And if so, what will that look like?

Remaining Financially Productive for Longer

There are people out there claiming they’ll never retire, and it’s most often presented as a bad thing. The idea of aiming for FIRE (Financial Independence, Retire Early) is still a popular one, and being forced to stay in the workforce past retirement age isn’t something that most of feel happy about.

The implication is that we’ll all be working ourselves into an early grave, but the reality, for most people, may be much more positive. Working longer, as we’ll discuss in a moment, might in fact mean the opposite of an early grave.

The first thing to consider is that staying financially productive doesn’t necessarily mean you’ll continue at your current job – or maintain your current rate of productivity – forever. The years traditionally associated with retirement can be, if we so choose, a time of fresh opportunities, creative endeavours, and reduced working hours.

Rocco Pendola talks a lot about this in his newsletter Never Retire: Living The Semi-Retired Life, and in his articles such as this one about how long-term semi-retirement can actually be a positive thing. As he puts it:

“…once you embrace the reality that you’ll Never Retire, a sense of freedom takes over, turning a seemingly negative idea into something overwhelmingly positive.”

The truth is that the gig economy has changed the concept of working in retirement. I now know many semi-retired people who are loving life, maintaining an income, and taking pride in being financially productive in their late sixties, seventies, and even eighties. They are writers, artists, consultants, and yoga teachers (yes, I know a yoga teacher in her seventies – she specialises in helping other older women stay healthy, mobile and vibrant well into old age).

For a while now, I’ve embraced the idea that I won’t be retiring in the traditional sense. I will eventually be scaling back, working less, and traveling more (with my fully location independent business model in place). But I won’t give up work. I don’t see it as a negative. I love the idea of remaining financially productive and having a purpose in life indefinitely. Which, as it turns out, might actually help me live longer.

The Hidden Benefits of Late-in-Life Productivity

I’ve recently read the book Blue Zones (and watched the Netflix documentary series of the same name). It addresses the fact that there are parts of the world where living long, healthy lives is the norm. Places where lively, active octogenarians and nonagenarians are the norm, and living past 100 (in relatively good health) is not unusual.

There are a few things that stand out about these “Blue Zones” but one is the idea that having a purpose in life supports living a longer life, in better health, than traditional retirement does.

In Japan this  concept is known as Ikigai. In Costa Rica it’s referred to as having a Plan de Vida. This literally means a plan for life, but is often translated as “why I wake up in the morning”, and is characterized by the idea that in later life you should continue to work but slow down (what Pendola refers to as the semi-retired life).

The concepts of Ikigai and a Plan de Vida are perhaps a little fuzzy to most Americans and many others in the Western world, but the idea is backed by statistics, and at its heart is quite simple. You are aiming to give yourself purpose, and for many of us some form of paid work is an excellent way to do that. If you’ve been crunching the numbers and realizing, perhaps with a sinking feeling of dread, that you’ll “never retire” perhaps it’s time to start looking at that a little differently.

Modern retirement plans can include a way to remain financially productive for longer, while embracing a sense of purpose. Next time you’re considering how to manage, and fund, your retirement, give yourself an opportunity to think about exactly what that might look like for you, and start planning for it.

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen