Early Retirement Maybe A Luxury That I Cannot Afford
I have blogged about early retirement in the past 2 years, but I really do not intend for this to be an annual series. Moreover, I do not intend to retire early and sit back and do nothing. Nevertheless, there are fresh insights on this topic and it is good to write them down for future reference.
In the past 1 year, I have read a few books such as "Capital in the 21st Century" and "Rise of the Robots: Technology and the Threat of a Jobless Future". I am concerned about automation and robots taking away jobs. By right, this should not be a concern for someone who has considered early retirement. However, there are additional complexity if I think about future generations. I do not have any children currently, but if I have, then any actions on my part now would have an impact on them in the future.
I do not think I will be replaced by automation and robots any time soon. However, the same cannot be said for the next generation. If the doomsday scenario of robots replacing workers on a wide scale were to materialise, it means that we are back to the very old days when how well we live does not depend on how hard we work, but who our parents are and/or whom we marry. In the case of my children (if any), that parent would be me. Thus, when seen from an inter-generational perspective, the window of human employment is closing soon and early retirement at a time when jobs are still available seems a luxury. Hence, instead of saving enough for my own retirement and retiring early, I should work for as long as possible to maximise the income from human capital and build up sufficient financial capital upon which my descendants could lead a decent life. Early retirement maybe a luxury that I could not afford in the face of automation and robots.
Of course, this is not a fool-proof plan. Whatever I save could be squandered away by future descendents. So, I do hope that the doomsday scenario of robots replacing workers will not happen. Or perhaps the prevailing governments of the day would understand the social implications and implement some basic income for citizens as suggested in the books mentioned above. If I have to pay more taxes for this to happen, I would grudgingly pay them. It is a small price to pay for social insurance for my future generations.
Of course, this is not a fool-proof plan. Whatever I save could be squandered away by future descendents. So, I do hope that the doomsday scenario of robots replacing workers will not happen. Or perhaps the prevailing governments of the day would understand the social implications and implement some basic income for citizens as suggested in the books mentioned above. If I have to pay more taxes for this to happen, I would grudgingly pay them. It is a small price to pay for social insurance for my future generations.
Having said the above, if I can have the option of not relying on some external parties to bail us out, that would be the best. Thus, I will have to use my own efforts and earn as much as possible. Sorry, folks, I have to go back to work tomorrow.
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