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Why People with Disposable Income Invest
Pensions and other forms of traditional saving are almost pointless when saving for retirement because of the increased lifespan or, more accurately, due to advancements in modern healthcare and healthy living.
If you are born in the developed world in the 21st century, you will live longer, be healthier, and have better prospects.
People are likely to live longer due to better healthcare, and the lack of wars and other events that traditionally killed people in previous centuries are no longer significant in deaths in the 21st century.
What this could mean is that people could live 25 years, if not more, after retirement in the late 60s; however, these estimates are expected to move to the 70s within this decade, which will mean that all retirement funds and savings will become useless and no longer the task of looking after people when they retire.
In previous generations, when men and women retired, they were not expected to live past a decade, but now, a child born in the 2000s is expected to reach their 100th birthday by the end of the century.
This means people need the funds for retirement of nearly 40 years if not more.
