My retirement is still multiple decades away but there is one thing I am pretty sure about. Social security will be completely different. You don’t have to be a scientist in order to see that amenities provided by the government have been decreasing over the past years and there are no signs that the will improve on the short or long term. I assume that they are to a large extend related to the levels of economic growth, and there are no signs of significant improvement there either. One could debate whether we will ever return to growth rates we know from the past (or recent years, if you have been living in China), but I may do that in another blog. For now, let us just assume it won’t change.
As a result, I think individuals should increase their level of control over their retirement. Making sure you save enough money for your old day is very important of course, but I would like to focus on how I would spent it, instead of where I saved it.
I believe that by the time I will retire, there will be no retirement homes anymore. Instead, parents will live with their children, with or without periodic reimbursements. I doubt whether I want to place such a load on my kids when I am old. Most likely, they will have their own careers, their own kids, friends, hobbies and whatsoever. I don’t want them to also have their own parents to look after. They will always be welcome, but I have no intention of raising a family for that purpose.
The Retirement Idea
So here’s the idea that has been on my mind for a few years now. Why don’t we get together with a bunch of people from the same age and buy ourselves a retirement home, including staff. I suggest a max group size of ten, in order to have a reasonable financial power without loosing span of control. Those people should be from the same era, will hopefully share some interests and there is a good chance they will have similar welfare levels. When all the individuals sell their own properties in order to put those funds into one single piece, that may provide sufficient funds for a proper new place to live together, including some funds to remodel the place to live there with multiple families. I did not do the math but it would be interesting to see if there would be funds available staff the place.
Again, my retirement is still decades away but the least I could do is give it a thought.