While it comes with challenges, growing older brings many exciting milestones and life events. However, new research shows that the assumptions we make about different stages of life and the ageing process could be inaccurate.
For example, we typically think of 18 as the beginning of adulthood, or 40 as middle age. We talk about ageing as a linear process too, with a simple progression from youth to old age, and the physical and mental challenges that brings.
But as we expand our understanding of the brain, ideas about development and ageing are changing. The findings could give a useful insight into the various life stages you will experience and how you can manage these transitions.
Read on to learn more.
Researchers identified distinct stages of life at age 9, 32, 66, and 83
A recent study sought to understand how the brain develops over time, and whether this corresponds to the various life stages we recognise, such as childhood, adolescence, and old age.
According to the Guardian, the study looked at brain scans from 4,000 people aged from less than one, up to 90, mapping the neural connections and seeing how they changed.
The findings showed four “turning points” where the brain undergoes a significant change, ushering in a new stage of life:
- 0 to 9 – Childhood
- 10 to 32 – Adolescence
- 33 to 66 – Adulthood
- 67 to 83 – Early ageing
- 84 onwards – Late ageing.
The brain grows differently in each of these stages, and this could give an insight into the kinds of development you might expect. What’s more, the stages correspond to your financial development too.
Childhood through adolescence is a time for growth
As you might expect, the first two phases of brain development focus heavily on growth. During childhood and adolescence, we undergo a constant progression where the brain is forming new synapses – connections between neurons that allow us to learn skills and store information.
The white and grey matter in the brain also expand, allowing us to form more complex connections.
If you have children, this is an important time for teaching valuable skills, as their brains are very malleable and effective at learning new information. As such, throughout childhood and adolescence, you might want to begin teaching them financial lessons about budgeting and saving.
They’ll continue to build on these early skills right through until they reach the adult phase around age 32, meaning they may be more able to manage their wealth effectively in later life.
As well as supporting their learning to capitalise on this period of rapid brain growth, you might contribute to their financial development too. If you begin saving for your child during these early stages of life, you will benefit from compound growth for longer, leaving them in a stronger position later.
The adult phase focuses on building stability
The adult phase, starting at 32, sees a slowing of the fast growth and change witnessed during childhood and adolescence.
The brain appears to stabilise with fewer increases in intelligence or variations in personality. This is also the longest phase, as the brain settles into a period of gradual change.
Your life and overall financial plan might follow a similar trajectory. Throughout adolescence and your 20s, you will likely be exploring the world and changing as a person while you discover new values and goals. Much of your focus will be on the novel experiences you can have.
But as you reach your 30s, your priorities might shift. While enjoying life is still very important, you may spend more time looking ahead, particularly if you start a family.
That’s why this phase of life is the perfect time to consider your retirement plan and long-term savings goals. While it may seem a long way off, if you start planning now, you will be able to build wealth steadily throughout your working life.
This means that, in the same way your brain uses this stage of life to consolidate and stabilise, you create financial security, so you are prepared for later life.
The ageing phases bring potential physical and cognitive challenges
From 66 onwards, you enter the early ageing and late ageing phases. These stages of life are characterised by cognitive decline and a shrinking of brain matter.
As such, it’s important to consider how you want to spend your later years. Even if you are more likely to experience physical and cognitive challenges, you can still enjoy a rich life during the early ageing stages.
You may want to consider whether you want to travel, what kind of social life you want, and other important goals such as supporting family members. You can then plan how you will draw from your retirement savings to fund this lifestyle.
Once you approach the late ageing stage, it’s vital to consider the possibility of a serious health issue that means you require long-term care. This can be a significant expense, so it could be useful to decide how you will pay for it ahead of time.
Planning for and adapting to the various life stages could mean you are better prepared for the changes you are likely to experience.
Get in touch
To discuss the important financial transitions throughout your life, please get in touch to find out how our team of VouchedFor Top Rated planners could help today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.