Twenty Good Summers

The true skill of a financial planner is to help clients understand that life is fleeting in relative terms, and having sufficient financial resources to live the life of your dreams is only part of the equation. It’s what you do with your time that’s most important.

We all have a finite time on this planet, and there is no guarantee that any of us will make the numbers in the Office for National Statistics (ONS) life expectancy tables. The 2020 to 2022 census showed a reduction from 83.01 to 82.57 years for women and from 79.29 to 78.57 years for men. Let’s be generous and call it 83 and 79 years, respectively. What we can’t know in advance is how many of these years will be healthy.

Even if you reach or exceed these milestones, none of us can guarantee that our health will allow us to do all the exciting and life-enriching things we’ve dreamt of doing. Such uncertainty should help focus our minds to not only plan the things we want to do and achieve, but to get on and actually do them, while we are, generally, as young and as fit as we’re ever going to be.

The book “Twenty Good Summers" by Martin Hawes is an excellent read for those in their late 40s or early 50s. The central idea of the book is that from around the age of 50, individuals might reasonably expect to have about twenty good, active years left in which they can enjoy life to its fullest. Hawes emphasizes the importance of planning and structuring life in a way that enables enjoyment of these years, balancing financial security with a lifestyle that brings satisfaction and happiness.

Many people mistakenly believe that money is the most precious resource. Hawes advocates for a shift in mindset, encouraging readers to value their time and life experiences just as much, if not more, than accumulating wealth. The idea is to enjoy life now, rather than continuously deferring gratification until an uncertain future.

We speak regularly to our clients about the ‘decumulation phase’, where instead of focusing on accumulating wealth, individuals begin to use their savings and investments to enhance their quality of life. This phase requires a different financial strategy, focusing on sustainability and spending in a controlled manner, rather than on further accumulation.

The book highlights the importance of finding the right balance between work, leisure, and personal interests, suggesting that while continuing some form of work can provide purpose and structure, it should not come at the expense of enjoying life. A view we subscribe to at Carbon is that people should be encouraged to pursue their passions, hobbies, and interests during these twenty good summers.

Hawes emphasizes the need for a clear financial plan that includes considerations like investment strategies, income streams, and expenditure management. He advocates for diversified investments and suggests strategies to ensure that one’s nest egg can support a comfortable lifestyle over the long term. No arguments from us there!

The biggest unknown is health. Not enjoying good health is likely to stop you doing many of the things on your bucket list, so investing in your health through regular exercise, a healthy diet, and preventative care, makes total sense as the foundation of a rich and fulfilling life.

The book also considers whether downsizing your home and making lifestyle adjustments could help you ensure your income matches your desired spending. In practice, it’s not always easy to adjust to the concept of selling a large family home and moving into somewhere much smaller or in a more affordable area.

"Twenty Good Summers" is an excellent call to action for anyone approaching retirement to rethink their priorities and plan their finances to make the most of their remaining active years. Martin Hawes advocates for a life that balances financial security with enjoyment and fulfilment. This is totally in keeping with Carbon’s philosophy of encouraging our clients to carefully consider what they value most in life and to make decisions that will allow them to spend their best years doing what they love.

If you would like help with planning your twenty good summers, please contact us on 0131 220 0000 or enquiries@carbonfinancial.co.uk.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action.

Tax and Estate Planning Services are not regulated by the Financial Conduct Authority.

The phrase ‘Twenty Good Summers’ has been used in the content of this blog title and article as a reference point and is taken from the book’ Twenty Good Summers: Work Less, Live More And Make the Most of Your Money’ by Martin Hawes. We do not own the rights.