Retirement has not changed, it has been turned on its head. The sad part is that Namo has not even mentioned ‘Retirement Time bomb’ even once in any of his speeches. We are really running out of time – we are pretending to sleep. No way somebody can wake up a person pretending to be sleeping. God save us.

Not long ago Social Security in USA sounded awesome. People retired at 65 and promptly died at 68. Now people are working for a shorter duration, and living real long.

Let me repeat this for the 1000th time. Retirement has changed, dramatically. IFA and their investors have to let the following SINK IN.

1. You and your investors will live longer than you think. Look around yourself, there are many 90 year old people!
2. On an average women will longer and SHOULD take an active part in their retirement planning.
3. None, repeat none of us can pretend that we need not understand Retirement planning. Start TODAY.
4. Many of us will live alone – and that will be expensive.
5. When we live alone we will outsource many things – so safety will become key.
6. As we get older MOST solutions will come from TECHNOLOGY. Learn technology. TODAY.

For younger people Retirement is one stage. As you get closer you will realize that retirement is T 20 match, and we will need different strategies – first 6 overs, next 5 overs, and then 9 overs of slogging.

1. Stage 1: till the age of 60-69:

this is when people reduce their commitments, do more consulting, and are a little confused about when to completely retire. So some of the challenges remain, but no, not really retired. People go back to their hobbies, travel, etc. and at this stage YOUR expenses INCREASE, not reduce. So please get the FACTs right.

2. Major, complex decisions to be made: – where will you live for the rest of your life, how will you ensure security, how will you pay for medical care (remember India does not have Long Term Care insurance). This will include decisions (and implementing) selling off your main house and buy a retirement house. Or decide to keep both. All this is very taxing, difficult, and will need professional or family help. Protecting your client from cheats and frauds is a very important job of the IFA. Check your own competencies for doing this. It is difficult and very tough.

3. Next stage: health deteriorates. You will need to withdraw for medical expenses, you will outsource many things which you were doing independently – cooking, washing, banking, paying utility bills, needing help to go for a walk, etc. Obviously the more able bodies spouse takes over the easier activity. You could also suffer losing a partner. If you have a kid/ niece/ younger sibling/ friend helping you, that is great, but it is not easy to find regular help for free.

The things for an IFA to remember:

Equity will have to be in your client’s portfolio till he/she reaches about 80 years of age ATLEAST.

Clients will need hand holding – with a far greater involvement.

IFA should employ OLDER people to deal with older clients.

Women will have a longer life, so they will have to be MORE involved, from TODAY.

Learn to use and teach technology. Rising human costs will FORCE us to do that.

Hey, we need to work hard. Starting today.