[Lee Boram's Senior Trend] 3 Essential Elements for a Life Portfolio

In youth, old age feels like a distant matter. Retirement after one’s working years can seem abstract and unrelated. However, aging comes to everyone. In the era of living to 100, to lead a vibrant third act of life, one must start by building a life portfolio. Although the system is still insufficient and there are few pioneers opening various paths ahead, making it a challenging issue.

According to 2022 data from Statistics Korea, the median age of the population in our country is currently 45 years. The median age has rapidly changed from 32 years in 2000. Looking at the “elderly statistics,” the population aged 65 and over in 2022 accounted for 17.5% of the total population, and it is expected to continue increasing, entering a super-aged society at 20.6% by 2025. The period for transitioning from an aged society to a super-aged society is 53 years in Austria, 50 years in the UK, 15 years in the US, 10 years in Japan, but only 7 years in Korea. Because of this, the “new middle-aged generation” had little time to prepare for these changes.

Recently, I conducted a special lecture on “Designing a Happy Life, Work, and Leisure after Retirement” for those approaching retirement age. I spoke about what kind of preparations and mindset can lead to a positive outlook, including exploring “work to do, things to do, and play to enjoy.” The response was tremendous. Many had felt overwhelmed by retirement, worrying about how painful it would be if they became ill or lacked spare funds, but they were grateful to learn about various things worth trying. They also said they understood the importance of work but were less familiar with volunteering or leisure activities.

Language limits thought. The Korean word for retirement, 은퇴 (隱退), means “to hide, to withdraw.” The Korean dictionary defines it as “withdrawing from social activities and living leisurely.” In Japan, it is called intai (引退), which means “to withdraw.” Because of this, it is difficult to think about what comes next. In English, “retire” can be interpreted as “like changing tires, preparing for a new sprint.” Therefore, an English-speaking scholar said, “Preparing for retirement is like changing tires, preparing for a new sprint. Health, finances, work, and friends are the four key elements.”

Nevertheless, is it difficult even in English-speaking countries? The American Association of Retired Persons (AARP) distributed a video for the “Midlife Perception Improvement Project.” It asked teenagers, 20s, and 30s to portray “the image of older people,” then spent two minutes with people in their 50s, 60s, and 70s teaching each other something they are good at. The younger generation was amazed, saying their standards for aging had completely changed through this brief experience. The middle-aged and older generations said they still live with the mindset of people in their 20s, and as long as they continue to develop and learn, age does not matter. A male and female speaker in their 70s said they still have many things they want to do, and that people start aging the moment they stop moving forward.

Just as all living beings have a lifespan, products also have a lifespan. In 1965, in the Harvard Business Review, German economist Theodore Levitt introduced the Product Life Cycle (PLC) model, which divides a product’s life after development into introduction, growth, maturity, and decline stages. In business management, decisions and strategies are developed according to each stage, and efforts are made to manage the life cycle. How about before and after retirement? We must know ourselves, analyze our environment, plan our entire life, prepare and manage strategically, and make efforts accordingly.

Let us spend the “new middle age” period well, manage life so that frailty comes slowly, and welcome a peaceful old age. Good life plans and habits delay the time when care and support are needed. In other words, “work to do, things to do, and play to enjoy” interact with each other to extend healthy life expectancy. Life needs to be a process of creating a balanced portfolio.

Is there any discipline more difficult than life itself?

Lee Boram, CEO of Third Age