The Economist recently published a column by Bartleby entitled “Why you should never retire.” “When this guest Bartleby entered the job market, she assumed that when the day comes, she too would be a pensioner. A quarter of a century on, your 48-year-old columnist hopes to be writing for The Economist decades from now, even if she trundles to her interviews supported by a Zimmer frame (a mobility walker).”
Bartleby generally argues against retiring. She notes that one in three Americans say they cannot afford to give up a full-time job, especially because of inflation and limited savings. But even for those who can afford it, the alternatives, she claims, need to be more fulfilling. “Can anything truly replace the framework and buzz of being part of the action? Hobbies are all good for many. But for the extremely driven, they can feel pointless and even slightly embarrassing.”
The column cites a sampling of the driven professionals which includes Georgio Armani at 89 as chief of his fashion house, Charlie Munger of Berkshire Hathaway who worked until he passed close to 100, and Warren Buffet who is still active at 93.
Bartleby adds, “to step down means to leave center stage—leisure gives you all the time in the world but tends to marginalize you as you are no longer in the game…There is depth for being useful. And excitement, even in significantly lower doses, can act as an anti-aging serum.”
The author may have made a convincing case for trying to remain active, but the regular person out there can never be an Armani, a Munger or a Buffet. Even her aim to continue writing noted the eventual need for a walking aid which will ultimately constrain her mobility and productivity. Legally, for example, salarymen in the private sector may be asked to retire at 60, and in government at 65. For the vast majority, retirement is a given.
The choice available in real terms is whether one will wait until reaching the mandatory retirement age, or even retire earlier. The realistic question is when. On a positive note, one can list down the many advantages for a retired state.
My close friend in Don Bosco, Steve Capacillo Jr., is my poster boy for the early retirement path. He related how his former boss retired at 60 and passed on at 63. With his so-called “unhealthy lifestyle” (he loves eating and the good life), he was afraid he might not live to 60. So, at 46, he availed of an early retirement program at Nestle Philippines, where he worked in Finance as a Certified Public Accountant “to have a head start at enjoying the rest of my life, without a boss, with no stress.”
Today, Steve is nearing 69. He invested part of his retirement package in his son’s business which did well and is a happy Lolo to several grandkids. Interestingly, his wife Yolly followed suit two years later and retired, also at 46 from PNOC. The couple has no regrets about this bold decision and looks content. He says that in hindsight and given the same opportunity, both would retire at 45.
Let me list several of the proposed arguments for choosing an early retirement path. One, retirement allows individuals to rest and recover from the physical and mental strain of work, potentially leading to improved health and well-being. By reducing stress and burnout, the retiree can provide for self-care, exercise, and pursue hobbies that promote a healthy lifestyle.
Two, freedom and flexibility are achieved. The retiree can pursue his/her passions, hobbies, and interests that were set aside due to work commitments. With the flexibility to travel, more time can be spent with family and friends with a less structured daily routine.
Three, retirement can provide the opportunity to learn new skills, volunteer, or engage in community activities, enriching one’s life with new experiences. It may open chances for part-time work, consulting or entrepreneurship without the pressure of a full-time career.
Four, for individuals who have planned well financially, retirement provides the chance to enjoy life without the worry of earning an income. It allows access to retirement savings, pension plans and social security benefits.
Finally, retirement can enhance one’s quality of life by allowing for a slower, more relaxed pace, which can be particularly beneficial in the later stages of life. With less stress, one can live a fulfilled life longer.
Retirement is a significant and deeply personal decision that involves both practical and emotional considerations. The decision to retire or continue working can be influenced by factors like health, financial security, personal fulfillment, and societal expectations.
For some, retirement offers a much-needed break and an opportunity to explore new horizons, while for others, continuing to work provides purpose, engagement, and a sense of fulfillment. Both paths can lead to a rewarding life, provided they align with the individual’s goals, health, and financial situation.
(Benel Dela Paz Lagua was previously EVP and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs. The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.)