The way we run companies today has remained largely the same since the Industrial Revolution. The first model was based on Ford’s production line, with multiple people repeating the same tasks, and as efficiently as possible. All Fords were black, not because it looked a certain way or it aligned with the brand’s vision, but simply because that colour of paint dried quickest on the assembly line.

The world has moved on, and companies need to keep up – not to mention how we plan for retirement. Is the recently introduced Two-Pot Retirement System going to be enough to help South Africans secure an income after employment? What will retirement look like for the next generation? What are the challenges and opportunities for work and life after work in the future?

Blessing Utete, Managing Executive at Old Mutual Corporate Consultants, discussed these burning questions in episode 2 of the latest season of our podcast, Big Business Insights. We were fortunate to be joined by Dr Bomikazi Zeka and Dion Chang as guests for this fascinating talk.

Dr Bomikazi Zeka is an Associate Professor in Finance and Financial Planning at the University of Canberra, where her research covers the economic outcomes of previously disadvantaged individuals. Dion Chang is a respected trend analyst and the founder and CEO of Flux Trends. Chang specialises in identifying unexpected business opportunities within shifting trends.

It’s not actually as simple as 1 + 1 = 2

There’s a level of financial sophistication needed when planning for retirement: how the fund works, how contributions are made, the investment structure, the tax implications, the fees. It’s not a once-off activity, so there’s a high level of active engagement that is necessary. From a behavioural point of view, the statistics reflect why retirement planning is put off when competing with life’s demands: “There’s no immediate reward for doing it, but there’s also no immediate penalty for not doing it,” said Dr Zeka.

Even if workers of today were more focused on saving, the employment landscape just doesn’t always match the old models. The convergence of climate change, AI, geopolitics and sociocultural changes is affecting jobs more than ever before. “If businesses keep a corporate structure that was designed for the 20th century instead of a digital era, then we see problems and conflict,” explained Chang. “This is going to have a huge impact on people’s savings, how they retire, and even if they can retire.”

Forging new career trajectories

Many older leaders are used to a very transactional way of time exchange: You’re the employee, I’m the employer, and you are my asset and I pay you for that time. But now employees are asking, “How do I fulfil my purpose? How do I nurture and grow? How can I look after my mental health?”

Career trajectories look so different across the age groups, says Chang. “For an older generation, it was very linear. You go to school, you go to university, and if you’re adventurous, maybe you change your job three times in your career. Then you retire.”

“Now you need to jump lanes between disciplines, to see how your skill can be applied to different sectors. You take a small sabbatical, go for further education, have a side hustle, study something else and you build this career portfolio around you,” said Chang. The path from here to retirement is anything but clear, and financial products aren’t always keeping up.

“Why are [so many] still doing things the way they’ve always been done, when they’re not aligning with the needs of the consumer?” asked Dr Zeka. Products are supposed to support the needs of, and financially empower, the employee. People are leaving their jobs, starting up that business they’ve always dreamt about, and re-imagining how they earn their income. “We’re seeing a gap in the market for this type of demographic,” says Dr Zeka. “People are looking for flexible work arrangements, more flexible saving structures, and the kinds of financial products that would service their needs.”

A new vision of retirement: life’s third age

Worldwide, populations are aging, living longer and healthier lives, more often into their 90s. “A gerontologist (a professional who studies aging and promotes wellbeing among older adults) called Ken Dychtwald wrote a book about what retirees really want in life’s third age. That phrase, ‘life’s third age’, really intrigued me,” explained Chang. What do you want to do for those last 30 years?

“I prefer to call it rewirement,” shared Chang. “People fear retirement more than they fear death.” The generation starting to retire now are the ones who put their entire lives and personas into their careers. “Once you take that away, they don’t really know what to do. But if you think of it as rewirement, the light bulb goes on.”

Listen to the podcast episode for the full stimulating conversation, which includes topics such as Africanising financial planning, the significance of the family unit, and more.

Financial planning reflects our attitudes and values as a society. While we may not know what the future holds, there are many opportunities to change things for the better.

Tune in on your favourite podcast platform like Spotify or Apple Podcasts to listen to this episode and subscribe to hear others in the series, or listen in on YouTube.