I chose pre-tirement a year and a half ago, in my mid-40s. Yep, it’s a thing – the space between full-time work and retirement – a reduced workload in return for $ that meet my needs and some wants. Monika Halan’s recent column reminded me of the real question I grappled with: “Will I outlive my money or will my money outlive me?”
I agree with her take on the learn-earn-burn model and sketchy finfluencers, but I don’t think the classic career peak-in-your-50s idea will last. Here’s why.
1. Short-termism is now baked into most companies. Layoffs, shrinking business cycles, and the fast pace of disruption mean you’re constantly solving new problems with new tools. That’s largely fluid intelligence, which peaks around 40. Until now, we’ve extended careers beyond 40 largely with crystallised intelligence (experience, wisdom), but AI is catching up with both. Soon, someone younger, faster, and AI-enabled might do the same work cheaper.
2. That also means even a decade-long career may be a stretch. Once humans turn knowledge into rules, rules become algorithms, automation happens and jobs disappear. Damn AI learns!
3. This shift is especially brutal for Gen X and Millennials who weren’t prepared for it. Add subpar savings, unhealthy lifestyles, and rising stress, and mental and physical health issues are inevitable. And no, companies won’t support you.
Since I’m aged enough to offer unsolicited advice: if you’re in your 30s/40s, aim for pre-tirement by 50. Think of it as a Pascal’s wager. Better to have financial freedom so you can grow on your terms, and are not forced to make money-driven choices.
The path? Good old compounding – of intelligence, wealth, health, and relationships.
1. Stay curious. Keep learning. Solve new problems to keep your mind sharp.
2. Spend and invest consciously. Don’t finance today’s wants at the cost of tomorrow’s needs.
3. Stay healthy, not just fit – body and mind. Saves you meds money and lets you enjoy your freedom.
4. Find people in whose company you can be yourself. It aids the above three too.
In the near and mid-term, AI’s quick evolution will question not just work’s efficacy as an income provider, but also its ability to deliver a sense of purpose. On an existential scale, I think the second will cause more damage.
Tag: work
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Reflections on my OS – Part 2
Continued from here.
A couple of weeks ago, I wrote about how the book “Behave” gave me insights on the ‘why’ behind the mindsets I have in life. Since mindset isn’t something you can leave at home, there is some impact on the professional front too.
Work
As I had mentioned, my OS has a few known features (uncharitably, bugs) – the scarcity mindset, a low regard for familial bonds and (until recently) friendships, and a belief that in a crunch the only person one can depend on is self. This has led to some obvious implications and some not-so-obvious ones at work.
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That passion – profession debate, again
In many beer fueled conversations, I have heard the sentiment of “quitting my job and doing something I am passionate about.” While I see merit in that line of thought, these days I also end up playing party-pooper by asking if he/she has a business model in mind, especially since the ‘passion’ is more often than not from the usual suspects list – digital photography, cooking/baking, writing, travel and so on. To clarify, unlike funded startups this model doesn’t even have to scale, but in the medium-long term, the revenue has to be greater than expenditure. That’s a requisite for survival in the world, unless one has alternate sources of income.
I saw a meeting of worlds when I noticed yet another job listing that demanded the person to be “passionate about digital marketing“? As someone who has been working in the domain since 2004, I have seen a version of this phrase appear in many job descriptions. I could replace digital marketing with startups, consumer insights, programming and so on, the question remains the same. (more…)
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Work, Parenting & the Monoculture
Sunday morning gave me a fantastic read, via multiple shares on my timeline – “Why do we work so hard?“, in which Ryan Avent traces the evolution of work (hours) from the time after the second world war, and wonders why a trend was reversed and we started working more hours. She considers her own as well as her father’s experiences, and explores whether it is the treadmill effect, the satisfaction of work, or a combination of both. She sums up one of her answers thus –
It is a cognitive and emotional relief to immerse oneself in something all-consuming while other difficulties float by. The complexities of intellectual puzzles are nothing to those of emotional ones. Work is a wonderful refuge.
Something about it gave me a sense of deja vu. I realised that this has also been my hypothesis about parenting! Back to that in a bit. Meanwhile, she ends the article with
..precisely why what I’m doing appeals to me. They are asking about a job. I am thinking about identity, community, purpose – the things that provide meaning and motivation. I am talking about my life.
It reminded me of a short conversation with S recently, where we agreed about how (many) people follow up their introductory “Hi, I am XYZ” with their designation and/or place of work, irrespective of the meeting context. (more…)
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Re: Skill
In The Entrepreneur and the Professional, I brought up the challenges at work faced by my generation. The focus was on an approach to work and the changes that have been forced on it because of rapidly shifting business environments. In addition to the business’ external dynamics, another factor that has been changing the organisation is the entry of a different kind of workforce.
“How the Millennial Workforce is Changing Business” calls this a revolution, and writes further that they will prepare the organisation for the future by making them Digital, Clear, Fluid, Fast. PwC’s layered report on the same subject brings out this workforce’ motivations, acknowledges the generational tensions and suggests what the organisation would need to do to attract, develop and manage millennials. (more…)