Sherlock Holmes and the retirement puzzle

22 May is #SherlockHolmesDay. Who knew? The great man himself would have deduced this day being ideal as it’s the birthday of his creator, Sir Arthur Conan Doyle. And if your interest is now piqued, Holmes appears in 56 short stories and four novels, such as the classic Hound of the Baskervilles.

His many adventures, numerous fights, the use of guns and a riding crop as well as his various addictions obviously took their toll. The fictional Holmes retired aged 49 to become a beekeeper on his small farm in the Sussex Downs. Nothing else is known of his life, although one version suggests he married aged 67 and lived to the age of 103.

That’s a lot of years in #retirement so Sherlock must have been astute with his #pensions planning. He often worked for expenses only and would claim rewards, but when he did get paid it was a handsome amount. In ‘The Adventure of the Priory School’, Holmes earns a ￡6,000 fee (around ￡700,000 today). And in ‘The Final Problem’, Holmes mentions that having worked with the government of France and the royal house of Scandinavia, he had enough money to retire comfortably.

But it was probably 221b Baker Street that provided Sherlock with his biggest asset in retirement. The address didn’t exist in 1887 but, if it had, Sherlock might have sold it in today’s market for around ￡1.7 million. For that money he would have been able to buy his farm for cash, never pay rent again and have all his savings available to fund his beekeeping and a long, leisurely 54-year retirement with time to properly learn the violin.

According to the government's?2020-21 English Housing Survey, the number of over-65s in privately rented housing has increased from 276,000 a decade ago to 382,000. As interest rates, mortgages and rents continue to climb so will the number of pensioners either renting or paying down debt. This adds substantially to the figures published by the [PLSA] for those planning for retirement, as these don’t include housing costs.

So, if we want to solve the retirement puzzle like Sherlock, it’s not all about saving for the future. It’s also about making sure we resolve the problem of debt and housing. If we’re still paying a mortgage or rent we’ll need so much more built up in savings to give up the benefits of a monthly paycheck.

Elementary for Sherlock. Not an easy case to crack for the rest of us!

Words from Pete McInulty, one of our Senior Employee Engagement Consultants.