Planning For An Engaging Retirement: Why It's Important To Get The Retirement Blend Right

By Suresh Sadagopan

Nagendran got a call from his friend Sridhar, a senior from school. They had been neighbours and had been in touch all through their adult lives, though they had been living in different cities throughout.

Sridhar is six months into retirement. He was always looking forward to a relaxed retirement, when he could go for long morning walks, relax, read papers, meet friends, visit the temple, watch some serials and movies etc. But he is already bored.

“Main pakh gaya hoon Nagu”, he was telling. Nagendran (Nagu) wanted to know why that is so. Sridhar told him that most of what he wants to do is finished by around 11 am itself. After that, it is just him and the TV. His friends are still busy at work or have their own engagements and schedules.

Planning The Second Innings

Retirement phase is a long one, stretching over 25-30 years or more. Hence, planning one’s finances for a comfortable retirement is essential. 

What is equally important is figuring out what one would like to do during retirement. This is about an understanding of what to do in the retirement phase. Most people fly blind into the retirement phase with a false sense of preparedness, only to find, like Sridhar, they do not know what to do with their time!

Finding Your Flow In Retirement

It is important to give some thought to this chunky phase, where one will have a lot of time to do what one may want.

One may want to pursue hobbies, learn new things, travel, etc. Some people want to continue working in their profession, part-time or full-time. This way, there is something to look forward to.

Some people actually thrive in the slower pace of life, where everything happens in a relaxed, ponderous manner, when the whole world is moving at a fast pace. 

So, retirement can mean and feel different for different people.

Finding Connections

Many in the retirement phase renew their bonds with friends and relatives, which brings richness and fulfilment into their lives. But, this alone cannot be a mainstay, as Sridhar experienced.

Family responsibilities also beckon some. They may want to spend time with their children’s family, and many times it is to take care of the grandchildren. The time they spend with their grandchildren, brings immense joy. This way they get to engage in something that is very helpful to their children, which at the same time is a delight to them. For many, this brings a richness and fulfilment in life that they find irresistible.

Giving One’s Time

There are so many areas where one can contribute or simply be engaged in, such as health, education, society, religion, politics, etc.

Many participate in some activity in these areas. This may not be from the point of earning money, though getting paid does add a sense of worth and validates their contributions. But it is not for money that most do it. Most people do it to feel wanted, for connections, to give back to society, and to preserve their mental acuity.  

Doing work in these areas also lends a sense of purpose and meaning to their life. It adds zest in this phase of life and contributes to one living a fulfilling life. Nagu suggested to Sridhar that he should consider teaching in college.

If one has not thought through this, retirement will become one very long, boring holiday when the days and months stretch in endless loops like in a Möbius strip! This is what Sridhar had experienced, as he was unable to figure out what he wanted to do in retirement.

Philanthropy

Apart from the various things mentioned, many in the retirement phase want to give back some of their wealth to society. Such people donate to causes and institutions they care for and support. 

Philanthropy is elevating! Giving is a sublime feeling which endows the giver with a blissful feeling that is difficult to get any other way! Philanthropy ennobles the giver and enriches the receiver,  a true win-win construct.

Some donate money and also get involved in ensuring that the money is put to good, intended use. This is also referred to as involved philanthropy. This is even better as the altruism brings delight, and involvement ensures achievement of the intended purpose. What better way to find meaning in retirement! 

Gifting And Succession Planning

Most do not think properly about succession planning. The thinking is that it will anyway go to the children after their lifetime.

Children require assistance when they start their lives. If the parents are in a position to spare money to help their children during their early phases, that gift would prove to be extremely valuable. When children get a legacy after their parents' lifetime, they are in their 50s or 60s. By that time, the children have gone through their struggles and have also built their own wealth, which makes the legacy much less impactful in their lives.

Therefore, planning what to do in retirement is just as crucial as arranging a financially secure retirement. Neglect the former, and one will plod through life. Forget the latter and one will live a worry-filled life. Getting both right is what will bring satisfaction and meaning.

The author is the MD & Principal Officer at Ladder7 Wealth Planners and the author of the book “If God Was Your Financial Planner”.

(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)