The two keys to your financially successful 100-year life

The two keys to your financially successful 100-year life

Anne Graham

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Have you thought about how long you’re likely to be on this planet?

No, really. Have you honestly considered the consequences of living a 100-year life and what that could mean for your health, wealth, career, well-being and relationships?

The 100-year life is not a new concept and much has been written about it, most recently by Lynda Gratton and Andrew Scott in their book The 100-Year Life: Living and Working in an Age of Longevity.

Over the past 200 years, life expectancy has expanded at a steady rate of more than two years every decade, and according to Australia’s Projected Life Expectancy Tables, of those born in 2015: men are expected to live to 91.5 years of age and women 93.6 years.

What does this mean for you?

The implication of a long life is that life, your life, will become multi-staged. The current dominant model is for a three-stage life: you go to school, you work, you retire. Imagine your life if you were to live 100-years? That middle “work” stage would have to become longer to make your money last, but that might not work for other things that matter. The stages will blur and transitions between the stages will change. Work as you know it, will change.

Let’s look at the impact on your wealth and the two keys to your financial success?

  1. Efficacy “I believe I am competent to perform this behaviour.”

When you think of efficacy and financial planning, think of answering the following questions:

  • How much do I need to live on?
  • How long do I want to work for?
  • What is my knowledge of my financial situation?
  • How financially literate am I?

Appropriate planning will depend on answering these questions realistically. When creating your financial plan, you can’t afford to kid yourself and self-knowledge in understanding aspects such as a general appetite for saving are vital for your success.

  1. Agency “I have the self-control and will to make this happen.”

Financial planning also depends on taking action and that is determined by agency – having the self-control to act on this knowledge and thereby balancing current needs with future needs. The question to ask yourself is: “would my 70 or 80 year-old self approve of the decisions I am taking today?”

Now that you have the secret of success – knowing all about your money and then taking action to act on that knowledge you can start planning your 100-year life.

And if you want some idea on how long you might be around go here and take the test. You might be surprised.

Anne Graham is a financial planner with over 30 years’ experience across financial services. She has received numerous awards and recognition from the profession based on the results achieved for her clients.

She specialises in helping clients prepare for retirement (whenever that may be) and thinking about “life after work” and what that looks like for them.

Drawing on her experience, technical expertise and genuine interest in people, she has the unique ability to de-mystify financial jargon and work with clients to achieve their goals.

The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice or its related entities. This information is general in nature and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. To view our full terms and conditions, click here.

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