Retirement: Embrace holistic planning

Comprehensive planning would include managing anxiety, identity loss, and loneliness; creating a comprehensive health routine; tackling social and relationship issues

I recently spoke with Anand, a prospective client in his late fifties from Delhi, who manages a division at a Fortune 500 company. He approached me to discuss his upcoming retirement next year and to ascertain if his finances would allow him to purchase a luxury home in a hillside retirement community.

Anand could easily finance his dream home in the hills by selling some of his stock options. However, he hadn’t considered the non-financial aspects of retirement. When I prompted him to envision a typical day in retirement, he struggled, having only romantic notions of a leisurely life in the hills away from work.
 

Anand was interested in nonprofit work but lacked clarity on the specifics of such work, having only donated to causes previously. He was not sure about when he would be able to move into the dream retirement home. His children were abroad and his wife was years away from retiring.  He was not sure if adequate medical facilities would be available in the hills. It soon became clear: while Anand was financially ready for retirement, he was significantly unprepared for its non-financial aspects.
 

Anand is not alone in his lack of preparation for retirement. Most people assume retirement will simply sort itself out and only worry about their financial ability to retire. They overlook the crucial non-financial aspects.

In contrast to Anand, my friend Yogesh meticulously planned both the financial and lifestyle aspects of his retirement. He opted for a retirement community just outside the major metro where he worked, allowing easy visits between him and his children. The community members shared his socio-economic background. Additionally, Yogesh contributed both financially and with his expertise to a nearby school for underprivileged children.
 

However, when I met Yogesh a few months ago, he had returned to his city home. “Most people in the community were much older than me. I bonded with many and we shared numerous activities, but the conversations often centred on health issues. After two friends passed away in quick succession, I felt depressed due to the lack of emotional support, as everyone else there faced similar challenges. Now, back at my long-time home, I am surrounded by family and friends of various age groups, which keeps my imagination stimulated and my spirits high. They provide the emotional and social support I need. I can still support the school from here, which made the decision to move back easy,” said Yogesh.
 

Most people neglect retirement planning entirely. Of those who do consider it, most, like Anand, focus solely on financial aspects without preparing for their non-financial needs for a phase that can last 30 years or longer (almost the length of a person’s career). Although Yogesh’s well-thought-out plans were disrupted by unexpected challenges, his approach was still better than doing no planning at all.
 

Truth be told, planning for retirement is arguably as crucial as career planning, if not more so. Yet, most people who do plan for retirement focus primarily on its financial aspects, aided by the availability of abundant resources and expertise. Little expertise is available on how to plan comprehensively for retirement, especially its softer aspects. These include managing feelings of anxiety, loss of identity, and loneliness; establishing a holistic health and wellness routine that incorporates diet, exercise, sleep, and emotional health; addressing social and relationship challenges; and finding a meaningful vocation after retirement.
 

A well-planned retirement not only allows individuals to enjoy the fruits of their labour but also fosters richer social connections and a fulfilling vocation that adds value to their lives and that of others.

The writer heads Fee-Only Investment Advisors LLP, a Sebi-registered investment advisor; X (formerly Twitter): @harshroongta