Financial plans for the 100-year-old are no longer distant.

We are in a transition phase. In the past era, globalization and technology It is the birthplace of changes in our lifestyle and work. But soon A longer life will be the cause of another change. The reason for this is Because on average We have a greater chance of living longer than our parents or grandparents.

According to the 2020 National Population Report, women are on average 80.4 years old, men are 73.2 years old. In 2040, the mean age for both women and men will increase to 83.2 and 76.8. As a result, women are numbered more than men due to a longer life. And you will see that our life expectancy will be significantly higher. Therefore, the chance that we will live to 100 years may not be a distant matter anymore.

However, no matter who we are, where, or how old we are. We must start thinking right now how we will choose to live each day. To make the most of a longer life.

If you imagine that If we must live up to 100 years of life. Planning and how will our financial planning change?

Past lifestyle Will be divided into 3 stages of life: school age, working-age, and retirement age. We will study until the age of about 23-25 ​​years, then go into work until the age of 60. And expect to live another 25 years after retirement happily. If it is the same way, we will have about 35 years to work to save money. To use the money after retirement that we have not worked for another 25 years. This can be seen that we have a longer time to save money than the time spent after retirement. And if there is good financial planning This goal is also a goal that can be achieved.

If we live up to 100 years and still want to retire at 60, our retirement period will increase to 40. Which is more than the working period to collect money. Therefore, comes that Living a traditional life may not be the answer anymore. Then what kind of life should we use next? The new lifestyles we should consider are as follows.

1. Healthy old age

Increased life expectancy will be our blessing only if we are in good health. If life expectancy increases but a period of good health does not increase accordingly. We would have been in a nightmare. Because we do not want to get old and must face many diseases Which, of course, must be followed by high medical costs as well. Therefore, taking care of yourself should be focused on prevention (Preventive Medicine). Do not smoke or consume alcohol, diet and weight control, get enough rest as well as taking care of physical health, and keep your mind healthy. Rather than focusing on treatment once the disease has occurred, That means the main factor that will lead to happy longevity is good health.

2. Work longer

As already mentioned If you have a life expectancy of 100 years and still want to retire at 60, you will have a period of 40 years after retirement. And how much do we need to have for retirement? Suppose you want to use the retirement money at 20,000 baht per month for a total of 480 months, which means that you need 9.6 million baht for retirement. This does not include the effect of inflation at all. If including the effect of inflation, we may have to prepare at least 20 million baht or more for retirement. And we will keep the money in time or not.

So, when we must live longer, we should have to work longer. Because if we do not work longer, we will have trouble because the savings are not enough to support themselves when retiring. For people who are not happy at work, This must be a nightmare. But it will be a starting point for us to take a closer look at the career options. Because people who are happy to work, they will have no problem slowing down to retire and work longer. Therefore, working for money only but not happy at work, it may not be an alternative to longevity. We should look for decent work. Can love work Along with the income that meets the needs at the same time.

3. Financial planning

The longer the life, the faster you plan your finances. To plan your finances properly. We must start by understanding our own potential. As well as answer yourself questions that How long do, I want to work? How much do I need to have enough to live? How well do I understand my financial situation? And I have a good understanding of finance. How good is an investment? When you can find the answer, Financial planning requires discipline. And continue to act. Which we will not be able to do continuously. If you don't know what it is for. Therefore, having clear goals and foresight will allow us to act on the money plan. In addition, balancing the need for money now and in the future. It is always important to consider as well.

4. Pay attention to things that cannot be valued as money

Assets are divided into two categories: physical assets such as cash, house, car, gold, real estate. And intangible assets such as the perfect life, having a loving family, harmonious, and happy working and have good physical and mental health. These are all intangible assets.

Intangible assets are very different from tangible assets like houses, cash or bank savings. Tangible assets are tangible. Easy to value money, ready to buy, understand, and easily follow. For example, we see savings in a bank account. Portfolio value in mutual funds and able to estimate the price of houses and land. While intangible assets such as friendship and family relationships, mental health, skills, knowledge, and abilities are It is not something that is tangible. But it is important that it is not even more slack at all.

In addition, we cannot separate intangible assets and tangible assets. In other words, both types of assets play a role in promoting each other. For example, if a lack of knowledge and ability probably not so easy to find a job to earn money. Or if we are in poor health or at home unhappy, stress will cause performance, and creativity in the workplace is noticeably reduced. Therefore, we must pay attention to both skills, knowledge, ability, feelings, and relationships with those around you, that is, the art of living itself.

In summary, for long and happy life, We need to focus more on intangible assets than in the past. Intangible assets are the key to a truly long and prosperous life. It is both the goal of life we ​​are pursuing and the reinforcement that increases our tangible assets. A healthy life relies on both assets that are balanced. And harmonize with each other I wish you all a long and happy life.


Nipapun Poonsateansup, CFP®, ACC

Independent Financial Planner Writer and speaker