The coming transformation of our world due to advances in technology will impact your financial life in many ways. Five big ones will be;
- How much you would need to “retire”
- The safety of your pensions
- Stock valuations and your investments
- Job / Business viability
- How you save for and fund medical expenses
1) Medical advances will push life expectancy to age 120+. A longer, active life span means you will need more income for longer. The idea that you may spend more for a few years of early retirement and then reduce your lifestyle expenses as you slow down due to age related restrictions has to be thrown out the window.
2) Pensions are already suffering under what one writer called “the perfect storm” namely longer life spans and poor investment returns. In particular the low interest rate environment really hurts the ability of pension plans to deliver the returns they need to pay out pensions. The situation will only worsen as the marriage of medicine and technology develops age-slowing and age-reversing therapies over the next 10-20 years. So don’t count on pensions to continue to deliver on their income promises. That is just not realistic.
3) The stock valuations of corporations reflect the company’s ability to make profits. However, no company will remain untouched by the creative and disruptive impacts of technology’s acceleration. New innovations like 3D printing, solar energy, artificial intelligent programs and genetic engineering will have far-reaching and likely surprising impacts on business viability. There will be big winners and losers even amongst previously bluechip stalwarts.
4) New industries will arise and many will fall by the wayside. Is your job or business going to be impacted? Count on it. Technology induced unemployment will accelerate along with the advances in robotics and artificial intelligence. (Think Siri on steroids) There is much debate about whether new jobs will be created to replace those lost. I predict big disruptions as most workers will not be prepared and will face many personal obstacles to retrain for the newly created opportunities whose number may be much less than the number lost.
5) Within the next 5-8 years I believe the advances being made in medical sciences to extend healthy life spans will create shockwaves in how we think about our lives. When it becomes apparent that the diseases of aging are about to become treatable and reversible, most of us will want to avail ourselves. This will initially cost out of pocket money as health plans will not be able to keep up. When we are confident this future is coming, the importance of staying healthy now, and making smart decisions now about funding future medical costs, increases dramatically.
Retirement Singularity, the name of my blog, focuses on the lifestyle and financial implications of the exponential advances in technology and how you can survive and even thrive in this incredible future. Check out my free report called, Retirement Singularity; The End of Retirement as We Know It” by clicking on this link Download Report.
Live long, live well and prosper!