[Special announcement: Given the high level of interest expressed by visitors to the site and given that I am personally concerned with retirement issues, I have created a completely separate site with more specific comments on this topic. If retirement is an issue of concern to you, you may find it useful to visit Retirement Wave.]

Here's a very old definition of retirement that still makes sense. Retirement is the period in life immediately preceding death.

Does that sound depressing? It shouldn't. Let's take a look at it. Until well into the 20th century, it was reality. Most people couldn't afford to stop being productive and just consume for a couple decades before they died. Most of those who did were forced to stop working due to frailty or illness; it wasn't a matter of choice. That's still the case for much of the world. However, the odds are very good that this is not the case for you. Someone with a connection to the Internet is likely to be someone who can consider retirement long before they die. What many of us do not yet understand, but the next generation will, is that we are setting ourselves up for a personal disaster. We are living in today's world, but too many of us are planning for yesterday's retirement. If you're between 35 and 75, you are guinea pigs without knowing it. Let me explain.

I'm 59 years old. When I was growing up as a teenager, it was common for men to die in their late 60's and women in their early 70's. Anyone who made it to 80 was considered exceptional, 90 was awe-inspiring. That was then, this is now.

Here's just one of many statistics I could mention. Right now, the US Census Bureau reports that 26% of the people who are 65 today can expect to live to 90. A similar situation is true of other "wealthy" nations; in some the percentage is already higher. That's a warning in itself, but there's a problem with it. It assumes that there will be no major medical breakthroughs in coming years that increase longevity. These essays have to be short, but here are just a few thoughts to consider before you decide to retire "early".

1) Medical science is not standing still, it's moving faster than ever. And it will affect you directly. In the US alone, there is a huge "baby boom"; people born following the end of World War 2 through 1964. The oldest turns 59 in 2005. Folks, it's a simple matter of economics. As this generation ages, private enterprise will focus more and more on aging. That's where tomorrow's big profits will be. Count on it. The real medical breakthroughs are coming in the next few years and onwards.

2) If you're 65 today, it will take you 25 years to get to 90. If you're 45, it will take you another 45 years and so forth. Forget statistics for the total population. The average adult reading this essay who has medical insurance, access to medical facilities, and at least a secondary school education must already assume that they will live to their mid-80's. Given the first point above, in ten years, not 25 or 45, they will likely expect to live to their mid-90's. In twenty years...you get the idea.

3) Our retirement plans are reflections of those of our parents or grandparents, depending on our age, but our chances of living a long life are not. We're living in the 21st century and planning a 20th century retirement. What is likely to happen if we don't change our approach?

Here's one scenario, certainly not the worst. You retire at 65. You leave the regular work world and focus on your own enjoyment: travel, visiting your children and grandchildren, hobbies, and so forth. You assume you've saved enough to pay for your retirement. You also assume, consciously or sub-consciously, that you will die in your 80's, certainly by 90.

Ten years later, you're 75. The health sciences and the health industry have been hard at work. You now are told that you can expect to live to 95, very likely to 100. You panic. You never expected that your savings would have to stretch that far. You want income. Sorry. Your former professional field has advanced and left you behind. You discover you're out-of-date. You've been playing the role of "retiree" for so long, you look and act "old", hardly good references for a worthwhile job. Panic is replaced by fear, then anger, then depression. Multiply this by millions of retirees. I'll leave it at that for this essay.

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