Retirement: When & Why

Though it may not seem so, retirement is quite a recent concept. A new phenomenon really. We now have bought into the concept of FRIE- financially independent and retire early, and have totally forgotten that retirement wasn’t even an idea before. 

Retirement as we know today began for the first time in the late 19th century. Previously, people used to work as long as they were physically able to. This essentially means there was hardly a life of not doing. Was this good or the new society is more privileged to have the opportunity to retire? 

• Ancient Rome: Roman soldiers were given pensions or lands after completing their service. But, civilians worked as long as they were able to.

• Germany: Chancellor Otta von Bismarck introduced the world’s first state sponsored retirement system offering pension to workers at age 70, later reduced to 65.

• UK & US: These countries started introducing pensions in the late 19th and early 20th centuries.

Why should employees retire?

During the Great Depression of the 1930s, mass unemployment led to the idea that the older workforce should make room for the younger workforce. Hence, the US established a government pension system for workers aged 65 and older. 

Other countries followed the model.

What is retirement for self-employed or unemployed people? 

Nothing really. It is the day the people decide to cut down their workload and live off of their savings and investments. 

Challenges of retirement:

Previously when people retired close to 70, they were very close to the end of their lives or the golden passage, as some say. However, that is not the case anymore, thanks to the advancement of technology. Now, we have successfully delayed our golden passage creating both an opportunity and a challenge. The challenge is whether we have enough money, health and community, to make it to the last goodbye. But the opportunity is to re-invent life and define your own new phase of life. 

Retirement trends now include phased retirement, gig work and learning something new right in the comfort of your own home. I often find the seniors far wiser and secure in themselves than I ever was. Why not offer a helping hand without prejudice. Why not learn from the new and make it better with the your worth of experience. 

Shouldn’t a real retirement statement be, I am retiring to ‘___________’. Be bold to fill your own ‘___________’ and I promise, you will find more choices than you ever knew!