When it comes to financial planning, a financial advisor typically focuses on arranging money to meet an individual’s financial needs. However, what often gets overlooked is planning for a happy life after retirement.
When the conversations with the client start with a discussion about what will make them happy during retirement, the advisor enables the client to envision their retirement and clarify their thought process on how to turn their dream into a reality. This discussion results in the identification of the financial and non-financial needs and planning for the same to achieve a better retirement life.
I have clients who are well on their way to financial independence but are not sure what it will take them to be happy post-retirement. There is a general understanding that during retirement, they would have more time to do the things they would love to do at their own pace. But in real life, retirement involves many complexities and requires serious thinking and planning.
A person coming from a corporate life may find it difficult to transition from a busy socially and mentally stimulating life to idle time through the day at a slow pace without any disturbance. Depending on their preference, if a person enjoys their current job, they may choose to transition from full-time to part-time employment. Some others would like to try their hobby while in a job and take it up as a full-time engagement post-retirement. For people, who are not financially sound, an income-generating hobby can come in handy as it will help them delay dipping into their retirement corpus.
Happiness comes from various sources. Good financial equity gives peace of mind as a person would have acquired sufficient money to support their expenses post-retirement. The importance of health equity cannot be underestimated. A healthy lifestyle including morning walks, jogging, exercising and a good diet not only keeps a person fit but also gives them a good feeling and enhances their self-confidence. It can reduce the major expense of medical costs during retirement. When it comes to living a fulfilling life, social equity (living in the company of people you enjoy) can provide satisfaction and happiness, leading to greater longevity.
It would be ideal to stay in the company of friends and family who care for you. Some people may prefer to live in a dedicated Senior Citizen community but living in a vibrant community with people of all ages can give energy and positivity to Life. So the discussion around how the client will leverage these equities for a happy Life after retirement should be an important discussion agenda for Financial Advisors.
A happy Retired Life is not just about arranging money for your financial goals but also about planning for retirement around your preferences and choices.
The writer is a SEBI Registered Adviser and Founder of FinMyn (https://finmyn.com). He provides Fee-Only Financial Planning and Investment Advisory services.
He has advised many clients in India, the US, Europe, the Middle East, South East Asia, and Australia.
To know more about him, click on https://finmyn.com/about/.
Wonderful thoughts Shashiji. Any ideas on how to start reducing our needs while we are working itself? Also, any thoughts on doing some volunteering activities with a goal of uplifting the life of poor which will certainly give us happiness.
Sorry, I am deviating the topic. Thanks for sharing your views.
Thank you, Gunaji.
The most important thing is the realization that life is important and it has a bigger purpose. The day we start getting happiness from giving rather than accumulating, taking care of others rather than ourselves that day life will change forever. There are opportunities all around. We just have to take one small step.