Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 66

Making judgments based on age

Complexity is one of the challenges of our information society, and we typically respond by making simplifying assumptions. This helps us manage the complexity but increases the risk of focusing on the wrong things. Worse, our prejudices easily lead us to simple answers which are consistent with our views but are often biased and misleading.

The complexity of longevity

Increasing longevity is one of the most challenging and complex issues we face – as a community and as individuals. It’s easy to fall into the trap of making sweeping statements. Prejudice, often fuelled by personal fear of our own mortality or that of our parents, can lead to big errors of judgment.

Why, for example, is there a disproportionate number of professional ice hockey players in Canada born in the first months of the calendar year? Readers of Malcolm Gladwell’s Outliers know that the selection of young players for higher-level ice hockey coaching starts in year seven or eight. Children born early in a calendar year are more mature than their age peers born late in the same year. So they tend to be chosen for further coaching. Same ‘age’ but different capabilities.

We become increasingly individual and different as we mature. Our community largely avoids using age as a basis for judgment until around age 60 when quite suddenly ‘age’ again becomes an issue. It’s used as a decision point if we want to ‘retire’ or access our super or get a free transport pass. In its report ‘Access All Ages – Older Workers and Commonwealth Laws’ (March 2013) the Australian Law Reform Commission identified a plethora of areas in which age has become more obviously a basis for discrimination than it might have been at the time the original legislation appeared.

‘The end of the Age of Entitlement’ has now entered our vocabulary as a justification for a series of age-based changes to government support (along with many other changes).

Has the notion of a numerical age outlived its usefulness? We are already evolving more sophisticated ways of evaluating ourselves. Could we be heading for a new ‘Age of Enlightenment’ where we create more contemporary models to help us know and manage ourselves better with increasing longevity? If so, this should lead to more effective allocation of expensive resources. Benefits would accrue to both individuals and governments.

Personal capital or value

At My Longevity, we developed a simple model which a person can use to help with their ‘retirement’ decisions. It shows how our personal value (capital) can be seen as a simple combination of our capability and experience. These accrue and eventually decline at different rates over our working life. The model invites people to consider the impact of retiring on their personal value. Each of us is different so the individual model varies accordingly. It can help shift the retirement focus to one of personal value rather than just financial value, and introduces the notion of a personal time frame to underpin decisions. It also fosters the important notion of mastery over personal circumstances which in turn supports the quest for independence.


Source: My Longevity Pty Ltd

This illustration shows how personal capital can accrue over time with a potential bonus from deferral of retirement. Personal circumstances can vary a lot from this model. Although our capability might decline in later years, it can be compensated for by our experience.

There are many other ways of showing people the diversity of options that can open up with greater longevity awareness.

Older people are increasingly seeking information and services which help them manage their lives better. Many of them want to continue to contribute to society and do so.

When governments discriminate in delivering services using outdated metrics like age, they risk giving the message that they are behind the times and out of touch with reality. They attract criticism and waste opportunities to encourage informed independence.

Success in managing longevity requires an effective partnership between individuals and governments. Maximising personal capability requires an environment that is supportive and nurturing.

As Malcolm Gladwell suggests: “It’s true in sports and it’s true in the rest of our lives as well. We need to wake up to the fact that as a society we haven’t been doing our part.”

 

David Williams began longevity research in 1986 and was a Director with RetireInvest and CEO of Bridges. He chaired the Standards Australia Committee on Personal Financial Planning. David founded My Longevity Pty Limited in 2008.

 

RELATED ARTICLES

Let's ditch the idea of retirement

Rethinking super tax concessions for the future

Australia isn't ageing as quickly as the Government says

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Latest Updates

Investment strategies

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Planning

Super, death and taxes – time to rethink your estate plans?

The $3 million super tax has many rethinking their super strategies, especially issues of wealth transfer on death. This reviews the taxes on super benefits and offers investment alternatives.

Taxation

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Shares

The megatrend you simply cannot ignore

Markets are reassessing the impact of AI, with initial euphoria giving way to growing scepticism. This shift is evident in the performance of ASX-listed AI beneficiaries, creating potential opportunities.

Gold

Is this the real reason for gold's surge past $3,000?

Concerns over the US fiscal position seem to have overtaken geopolitics and interest rates as the biggest tailwind for gold prices. Even if a debt crisis doesn't seem likely, there could be more support on the way.

Exchange traded products

Is now the time to invest in small caps?

With further RBA rate cuts forecast this year, small caps may be key beneficiaries. There are quality small cap LICs and LITs trading at discounts to net assets, offering opportunities for astute investors.

Strategy

Welcome to the grey war

Forget speculation about a future US-China conflict - it's already happening. Through cyberwarfare and propaganda, China is waging a grey war designed to weaken democracies without firing a single shot.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.