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.

 

  •   13 June 2014
  • 2
  •      
  •   

RELATED ARTICLES

Why a traditional retirement may be pushed back 25 years

Let's ditch the idea of retirement

Rethinking super tax concessions for the future

banner

Most viewed in recent weeks

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Two months into retirement

A retirement researcher's take on retirement and her focus on each of her six resource buckets to stay engaged during the transition and beyond.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

Latest Updates

Investing

Markets without a margin for error

From US fiscal pressure to China’s shifting growth model and Australia’s structural constraints, markets are yet to reflect a less forgiving global investment landscape.

Investment strategies

The investment mistake killing your returns

Retail investors face an increasingly complex product environment, but simplicity may be the most overlooked advantage in building a portfolio you can actually live with.

The ticking clock on oil reserves

A sustained disruption through the Strait of Hormuz is forcing a rapid drawdown of global inventories. Without a resolution, the arithmetic points to a supply shock by early August and a sharp surge in the oil price.

Infrastructure

Managing the impact of the Middle East conflict on listed infrastructure

The outbreak of conflict in the Middle East in February 2026 marks an historic shock for oil and gas markets, with major implications for inflation, interest rates and ultimately for listed infrastructure companies.

Economy

Rent inflation and the missing policy

The government plans to remove negative gearing to help renters buy homes. For those who remain renters, the wrong levers are being pulled to try and increase rental unit supply.

Investment strategies

The Risk-Wealth Paradox: Why more money means you should take less risk

As wealth grows, so does the assumption that risk should too. But in reality, the opposite may be true: once you understand how the value of money changes over time, the case for taking less risk becomes far more compelling.

SMSF strategies

SMSF estate planning: Eight things to consider

As super balances grow, SMSFs are becoming central to retirement outcomes. Without proper planning for “Armageddon” scenarios, even well-structured funds can unravel when it matters most.

Sponsors

Alliances

© 2026 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.