Longevity is, at its core, a medical and biological concept. People are living longer because medicine, nutrition and living conditions have improved. That’s a positive development.
What longevity means for your retirement planning
But longevity is also driving a broader societal shift. Anyone who retires at 65 and lives to 90 will spend 25 years in retirement. That is not a short wind-down phase – it is a second stage of adult life. With one central question in mind: What do I do with it?
For employees, this question is challenging enough. For business owners, there is an additional dimension: their lives have often been closely tied to their business. Identity, daily rhythm, social connections – much of it revolves around the company. When this changes or the business is handed over, something needs to take its place.
Three questions longevity raises for business owners
1. When do I step away – and what comes next?
For many business owners, the question of stepping away from their business arises later than expected. There is no natural endpoint. Succession is complex. And their identity is closely tied to the business.
Longevity makes this question more pressing. Someone who sells at 65 and lives to 90 still has a quarter of a century ahead of them. That requires a plan – and not just a financial one.
2. How do I finance the 25 years of my retirement?
This is the question PensExpert specialises in. But it’s not the first question we ask – it’s the consequence of the first: how do you want to live? What are your goals and needs? If you know how you want to live, you can plan what it will cost. And if you plan early, you have more options.
As self-employed individuals, without a mandatory pension fund, you need to take a more active role in shaping your retirement planning than employees do. This is a responsibility – but also an opportunity, because it gives you greater flexibility.
3. What happens to my business – and to my employees?
Longevity also changes how we think about succession. Anyone who knows that they may have another 25 active years after selling their business plan the transition differently. And those who pass on a business ask themselves: what can I offer my employees to support their own retirement planning?
Longevity is not a threat. It is an invitation to plan life more consciously — in every respect.
Joël Wetterwald
How PensExpert supports you
PensExpert has been supporting business owners and self-employed individuals for over 25 years. Not only with pension funds or pillar 3a, but with the broader question: what does a financially sustainable life in retirement look like - one that fits your goals, your needs and your situation?
We are independent. Our custody partners are banks that we select with care. The decision about who manages your retirement assets is yours – guided by our advice.
