By Bhuvanaa Shreeram

Mr. Nair retired in May this year. He came visiting the planner referred to him by a friend, along with his wife. They were both excited and anxious about their retirement and one question that is in every retiree’s mind came up even before they were served tea and coffee.

Mr. Nair: I am retired now, and I have received my PF, gratuity and all settlement amounts. I want to check if I have enough?

Planner: Sure, let’s check. Can you help me understand this better - When you ask ‘Do I have enough what exactly do you mean? Enough for what?

Mr. Nair: I’m worried if what I have will be enough to maintain my lifestyle and manage any unexpected expenses, especially medical ones.

Financial concerns often mask deeper values and priorities. The planner had to delve deeper and guide the conversation beyond surface-level financial concerns to the core of Mr. Nair’s aspirations and fears.Balancing Wants And Needs: Teaching Your Kids How to Become Financially Savvy

Planner: Ok, I understand. Apart from covering your daily expenses and unexpected medical costs, what else is important to you in your retirement?

Mr. Nair: I've always valued being independent. I don’t want to be a financial burden on my children. Also, I hope to continue supporting community services that I've been involved with.

Planner: Independence is important to you, I understand. Supporting community services is such a selfless & noble intention. I am noting that down. Is there anything else you wish to pursue once you retire?

Mrs. Nair: Well, we have always wanted to travel more, especially to historical sites across India, which we couldn’t do during his working years.

Planner: Travel sounds like fun. It’s great to have aspirations that would keep you active and engaged. Where do you see yourself living? What kind of opportunities for meeting people and having a social support group do you foresee?

Mr. Nair: That is quite important. I’ve been a social person. Once I retire I will definitely miss hanging out with my colleagues and friends from work. I would like to keep a vibrant social life.

They continue this conversation for a little more time and the planner understands that Mr. Nair’s financial plan needs to support not just his basic sustenance, medical needs and lifestyle but also his independence, community contributions, travel dreams, and active social engagements.

Planner: Wow - not just a life of comfort but also travel, community contributions and active social engagements is what would mean a fulfilling retirement to you. And it is critical that your finances support these aspirations without you having to worry about running out of money. Your independence is just as important. Did I get what you are seeking right?

Mr. Nair: That sound’s just about right. Our needs and aspirations may change with time though.

Planner: Of course! Your money should help you live the best life possible. So your investment plan should be aligned to your life plans. And as your life needs evolve so should your financial plan. It cannot be something cast in stone. I understand.

The meeting ends with both the planner and Mr. Nair feeling more attuned to the true length and breadth of their financial needs and the personal values driving them.

The planner reassures them that their next steps will involve putting all relevant data about their current assets, liabilities, income sources if any, expenses etc. A detailed financial modelling, forecasting and scenario building tailored to their unique situation and aspirations will be used to finalise the next course of action.

Will you make the most ‘meaning’ with your ‘means’?

This deep-dive conversation highlights the importance of a comprehensive approach to retirement planning. It’s not just about having enough money to live on but having enough resources to live well and according to one’s values. By fully understanding what ‘enough’ means your planner / adviser will be able to craft a financial plan that genuinely aligns with your desires and concerns, ensuring your retirement is as rich in meaning as it is in financial security.

The author is a certified financial planner, co-founder and head of financial planning at House of Alpha Investment Advisers Pvt. Ltd.