The concept of retirement is more challenging than you think

“Find a job that you love and you never have to work a day in your life.” ~ Confucius

Growing up, I lived by that ethos (especially upon graduation, when we were expected to “find a job”) and still do, even though I’m not an employee by the standard definition. But what is “work” anyway? Therefore, the wisdom of Confucius still resonates with me, as we have to refine the definition of work as we know it.

By the same logic, if we do something out of passion, it is not a job or work, which means the concept of retirement (as we generally understand it to be) is inapplicable. What does it mean to “retire”? At a recent dinner, a guest concluded that retirement is a workers’ mentality, which means one sees themselves as a worker, going by their job, as a contractual obligation in exchange for income, rather than an innovator, entrepreneur, craftsman, artist, or anything other than simply a worker. By that definition, the idea of retirement is a time and financial concept, where one works to the day they can afford to retire – meaning they have earned enough money over time to afford the luxury of not having to work anymore and get on with life without financial burdens.

On the other hand, if we do what we love and love what we do, it is no longer a job that we have to retire from. It’s just something that you keep doing because it’s what motivates and inspires you; a constant progress and desire to keep improving and keep going. There is no expiry date to pursue one’s passion. Besides, I believe we can only excel in a chosen field if we are passionate about it and with that, monetary rewards will naturally follow.

Of course, it would be idealistic to assume we can all just follow our hearts and not care about finances. As they say, “It’s the economy, stupid!” So, while fundamentally it’s important to do what we love, it must pay as well since bills don’t pay themselves.

Back to “retirement”: The question is not when, but rather how. If you believe “you’ll not have to work a day in your life if you find a job that you love”, then you will never need to retire and you should not either, for the best way to stay alert as we age is to ensure our minds are still engaged and stimulated. However, our economic years to accumulate resources decrease as we age, so whichever path we choose, be it to follow our hearts or be driven by circumstances, we need to ensure we remain financially independent even as we get older and have less energy and resources to earn a living. So, the question we should all ask ourselves is, can you afford to retire? Can you afford to do nothing and not worry about making ends meet?

To answer that question, one will need to ask, “How do you want to spend your days?” when you have all the time in the world to do whatever you want. It is not purely reserved for the elderly, for we have all heard of or know of the lucky few who could retire even before they turn half a century old.

The lifestyle that you seek to have will determine the number of resources required to retire. Often, we hear of grand plans of “moving to the countryside” or to places that have a lower cost of living than their current place of residence, presumably because their resources will stretch further, which is a key consideration given that one would have most likely stopped generating active income and relying on passive income instead. But I’ve asked myself that question too. Do I want to move to a completely different environment when I retire? If I had spent most of my life in a city because I love the pulsating energy that comes with urban living, what makes me think I’ll suddenly enjoy spending all my days up in the mountains or by the beach? In a developing country? On the contrary. If I could have it my way, I’ll still stay in the city, but spend longer holidays elsewhere so it’s the best of both worlds. That choice is a matter of affordability. So, it’s still back to economics. Retirement is essentially a matter of economics. Can you afford to retire your way?

Another key number in the sum of retirement is life span. As life expectancy increases with better healthcare and improved nutrition, we have more years to feed and that means we require more resources, which begets the question, when can you afford to retire? If the average lifespan is 80 years old, then someone in their 40s is only at the halfway mark. Will you be able to earn enough to see you through your twilight years without making huge compromises and sacrifices to your current lifestyle, as well as your desired retirement plan?

I remember having a conversation with a friend about succumbing to societal pressure and getting myself vaccinated because that’s going to be the passport to a normal life. I’m still worried about potential long-term effects, but who knows, I may not live to 80 anyway so let’s seize the day. If being a conformist with weak will power and strong FOMO is the only way I could still live each day to the fullest by having the freedom that comes from being certified vaccinated, then so be it. He replied, “Do you want to live to 80 anyway? I wouldn’t want to!” Well, I said, the question is not if we want to, but if we can afford to live to 80!