The new Commissioners Standard Ordinary Mortality Tables
indicate that the life span has extended from 100 years up
to the age of 120 years. The Age Wave hypothesis, speaks of
a bright new career after retirement. To be among the confident
players, in this innovation age must mean that the financial
goal is savings enough to outlive the life cycle.
The new Mortality Tables now differentiate life spans among
smokers and non-smokers. Out of every 1,000 members of the
population aged 50 years, the Tables indicate that twice as
many smokers will die compared with non-smokers, in one year.
When segregated by gender, out of every 1,000 female, non-smokers,
aged 50 years, 2.81 will die, compared with 5.39 smokers,
who will die that year.
Among the males, out of every 1,000 non-smokers, 3.32 will
die, compared with 6.45 smokers, who will die in that year.
So the smokers are going down faster than non-smokers, and
the males are not as resilient as the females in the face
of disease, and other dynamics.
What we are staring at in the face is really a whole new
cosmetics industry, on the light side of the dilemma. But
on the serious side, it looks like a whole heap of very old
women decorating the earth.
In a society where many women, aged 60 years have been housewives
all their lives, dependant on a survivor benefit for monthly
income, that spells trouble! Its a good thing that some
wise women before our time, decided that women had to exit
the non-income labour market, and get into the income labour
Let me explain what I mean. Pension plans come with a guaranteed
amount of payments for the beneficiary, and payments for the
lifetime of the pensioner. When the pensioner dies, the beneficiary
will receive pension cheques for the guarantee period, and
then the cheques will stop.
The common guarantee period is ten years. If the pensioner
dies in the tenth year after receiving his initial pension
cheque, in a ten year guarantee scenario, the surviving spouse
has nothing to get. She had better have her own pension plan!
If women didnt work, they would not have pension plans,
and since they are living longer anyway, they would not be
able to afford food, much less cosmetics!
We need then to examine the concept of what is called non-labour
Non-labour income or what is also called non-wage income,
is income that is earned through investments, inheritances,
dividend payments, trusts, as well as welfare payments such
It is known that households headed by single women, are
more likely to fall into poverty than any other group in society,
and they tend to be more dependant on state welfare.
But its time for a paradigm shift, women are capable of
making just as much money as any other class of workers, and
ought to begin thinking of portfolio investments, their own
longevity, and life style adjustments, that pay real dividends
for the long term.
The family is still the basic unit of the society, and marriage
is a stronghold on morality, and for that reason, dual-income
families is a paradigm that has emerged. The shift has to
be towards independent investment portfolios, to spread the
risk, and joint and survivor benefits.
It has been said that wealth is what you leave for your
heirs, but what you take with you of your wealth, is what
you have used to add value to the lives of those around you,
and the stock you have distributed in charity.