Embracing Retirement, Embracing the Run: Insights from a Former Banker

o when I decided to 'Re-attire' from being an Investment Banker to a more open-collar culture of a start-up, the question I was asked a zillion times was, why retire? Are you prepared for it? etc. So here I am writing about my adaptation of lessons from being a long-distance runner into financial planning for the re-attired phase of life.

Retirement is a phase of life that should be cherished, and so should running a marathon; the community it builds, the endorphins it creates, and the overall purpose it fulfills are immense. We, at GetSetUp, believe it's a time filled with possibilities and opportunities. 

Disciplined training of the body and mind can get you to run a distance, so a disciplined strategy in your financial planning can allow you to truly enjoy this phase. We offer classes that help guide older adults through retirement planning in India, focusing on inflation protection and wealth preservation. The classes aim to provide you with practical insights and tips that will help you feel confident and prepared for this exciting chapter in your life. And we also have training modules to help you run your first 5 km as confidently as a marathoner and enjoy the joys of physical activity.

Embracing Inflation Protection and Dealing with Muscle Injuries as You Age:

Inflation poses a challenge for retirees. To secure a brighter future, consider inflation when setting retirement savings goals. It's the biggest headwind you will face. It’s not just the headline inflation number, but certain segments of expenses are highly inflationary, e.g., healthcare. Adjust your financial plans accordingly. Most of us do not take health insurance until way past the corporate cover drops. Ensure your investment funds are sufficient to maintain your standard of living and cover inflationary expenses. It's similar to a routine of strength training and adequate nutrition for muscle strengthening to ensure avoiding injury while running.

Diversifying Retirement Investments vs. Adding Multi-discipline Physical Activity:

Diversify your investments effectively to safeguard against inflation. Avoid relying solely on low-yield fixed-income options. Instead, create a well-diversified portfolio with equities, bonds, and other assets that can help provide inflation protection. Add yoga and cross-training to your physical routine. Yoga will improve flexibility, and breathing techniques can improve lung capacity, allowing you to run longer.

Discovering Retirement Investment Options and Finding the Best Running Distance:

India offers various retirement investment options. Explore choices such as the Public Provident Fund (PPF), especially after the Employee Provident Fund (EPF) option drops off post salary income stopping, the National Pension System (NPS), Mutual Funds - a balanced mix of debt and equity, and the Senior Citizen Savings Scheme (SCSS) are among the few available options. Just like each individual has their own limit and thresholds to run, to some, a 10km is excruciating, and to others, it’s just the right amount of weekly dose of endorphins. Running requires a coach and a guide to follow; it can be another amateur runner or a pro to bounce off thoughts if you are doing it right; the same goes for retirement planning; it can be a trusted friend or a professional financial planner; suit yourself.

Prudent Spending for a Fulfilling Retirement is Like Running a Long Distance with Steady Steps:

Exercise prudence and caution when spending in the early years of retirement. Develop a realistic retirement spending plan that accounts for essential expenses, healthcare costs, and unforeseen circumstances. Run the first few kilometers slow and steady until the rhythm sets in before pacing up and knowing your strengths.

By incorporating inflation protection, diversifying investments, exploring various options, and practicing prudent spending, you can enhance your confidence and preparedness for your retirement journey. Similarly, running long distances doesn't have to be overwhelming. By taking small, consistent steps, maintaining discipline in strength and nutrition, and adapting your own running style to suit your body, you can experience the joy of a fulfilling run. At GetSetUp, we are here to provide you with practical insights and guidance, empowering you to achieve your goals and embrace this new phase of life to its fullest potential.

A retired banker who has served in the financial services sector spanning more than 28 years, Ashwini is also a fitness enthusiast who actively participates in marathons and has a particular interest in team building through sports, particularly treks, hikes, running and cycling. His last assignment was with Barclays Bank, where he served for 21 years, as the Head of Financial Institutions Group (FIG) & Public Sector Undertaking (PSU), India.

Interested in partnering with GetSetUp? Drop me an email at ashwini@getsetup.io. Our interactive learning and socializing ecosystem empowers partners to engage their current members with a digital-first platform. We partner with organizations that want to promote financial and tech literacy, and offer opportunities to improve the health and wellness of older adults.