The nature of financial planning advice will change dramatically as it becomes common for people to live to 100.
The idea of a three-stage life where we go to school for 20 years, work for 40, then retire for 20 and die will go away. It will be replaced by a non-linear, multi-stage life where people will cycle in and out of education, work, leisure, re-creation, sabbatical, gig economy, and encore careers.
How we define what an “asset” is will change and the ability to enhance your “intangible” assets will become critical to a happy life.
The advice we give on saving for retirement and working in retirement will change as we need to make our money last as we live to 100 or beyond. (See podcast with Phil Cunningham, CEO of Advicent on the future of financial planning.)
Life planning will emerge as the dominant construct for financial advisors as our life pattern becomes more complicated and investment management becomes more automated.
In today’s show, my guest is Professor Andrew Scott of London Business School. Professor Scott is the co-author of an important new book titled, The 100-Year Life: Living and Working in an Age of Longevity.
I firmly believe there’s a perfect storm brewing that will radically alter the nature of financial planning. Increasing longevity is one of the factors and today’s show is an excellent resource to arm you to succeed as people live to 100 and beyond.
The 100-Year Life book website
Harvard Business Review article by Andrew Scott and Lynda Gratton on 100-Year Life