The kind of personal finance our retirement planning should and should not focus on
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Age isn’t only counting pennies
Retirement planning is overtly focussed on adequacy of income and wealth. When one’s immediate family lives too far away, and when one knows that the loving spouse will also depart one day, how does one prepare for life? How does one minimise the scope of activities to just a few? How does one allocate money for what matters— relationships, conversations. Or how does one allocate money for what must be done— bequest, charity. Personal finance offers answers to these six questions about old age. Consider them as points to ponder.
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Is there an end to money woes?
First, does there come a point where one stops bothering about income and spending? After retirement, the first 10 years may be spent on trying to still earn an income; the next 10 may be spent on ensuring expenses are in line. What after that? Wouldn’t there be a situation of lesser expense? Would one not feel old enough to spend and use the corpus?
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Will age help you become a minimalist?
Second, there is so much one can do without. At some point, one must stop acquiring things. Why does one keep buying and hoarding? Is it a psychological response to feeling lonely? If needs are limited, expenses are limited, and anxiety about money is also lesser. What does it take to say no to stuff, and to be content with what is already there?
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Why is the act of giving not given due importance?
Third, why postpone giving to the day when one is no more? What happens if one systematically gives away little things at first, and slowly progresses to bigger things? Keep say 30% of your wealth for yourself, and give away all else? Wouldn’t that be enough to see one through? Shouldn’t the act of simplifying one’s finances begin soon after retirement and get tighter as years roll?
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How do you create a joyful old life?
Fourth, how does one develop and nurture a network beyond the family? Like-minded friends undoubtedly add to the joys of life, especially old life. But one must not abandon connect with youth. For the sheer energy, freshness, fearlessness and unbounded joy that children and youth bring, they must be part of an elder’s life. Age bestows perspective and appreciation that enriches the lives of the young in no small measure.
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How do you cope with the lack of new experiences?
Fifth, how does one deal with limited mobility? Of a life without travel? Or even the joys of a long walk or trek? How does one reconcile with the same piece of sky each day? Money can’t buy the joys that our own aging frames cannot enjoy. Is being glued to passive television and social media the only solace? Will vicarious pleasure replace real experiences? Or is that longing also something to be frowned upon?
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Why spawn bitterness about life?
Sixth, is there a point when one looks within, becomes quieter from that introspection and exhibits gratitude rather than entitlement? How does this come about? Why is old age filled with noisy complaints, bitter accusations and resenting withdrawal when nothing else works? What does it take for truth about one’s mortality to prevail as a humbling presence? This attitude may not be about money, or is it?
