Retirement Planning Essentials

The new retirement? No retirement. Northwestern Mutual's 2025 study says Americans need $1.26 million to retire comfortably. Yet LinkedIn data shows baby boomers are returning to work at rates not seen since before the pandemic. Last week, a friend who retired at 67 called me in a panic. His portfolio dropped 22% in 2022 while inflation ate into his purchasing power. "Andy, I'm going back to work," he said. "I can't shake the feeling I'll outlive my savings." Here's what many retirees miss. It's not just about having enough money. It's about managing it through market cycles. After 26 years as a financial advisor, I've learned the most successful retirees don't set their allocation and forget it. They stay tactical within guardrails. The 10% Rule That Changes Everything: Start with your strategic allocation—let's say 60% stocks, 40% bonds. But give yourself permission to adjust plus or minus 10% based on market conditions. Economy humming? Maybe you're 70/30. Recession clouds forming? Dial back to 50/50. You're always balanced. Always diversified. But you're not sitting still while markets shift around you. My friend? Instead of going back to full-time work, he's consulting. Working 10-15 hours a week doing something you enjoy? That's not failure. That's freedom. It lets your portfolio breathe while keeping you engaged. The new retirement reality... your best hedge against outliving your money isn't just saving more. It's staying flexible, both with your portfolio and your plans. What's your approach to managing risk in retirement? #RetirementPlanning #FinancialAdvisor #BabyBoomers #LITrendingTopics #Retirement

This govt policy change can make you richer than most mutual funds. The rules of NPS (National Pension Scheme) were updated recently. These 4 new features make it stronger, cheaper and more flexible for anyone building long term money. 1️⃣ Full equity option - You can now put 100% of your NPS money in equity. - Earlier it was capped at 75%. - This matters because someone in their 20s now gets decades of equity compounding along with tax benefits in both tax regimes. 2️⃣ Lock in finally reduced - The lock in is now 15 years instead of waiting till 60. - This gives people the freedom to use their money for real goals like a home, kids’ education or even a career break. - It makes NPS practical, not just a retirement box. 3️⃣ Multiple schemes in one account - Earlier you picked one scheme and were stuck with it. - Now you can hold multiple products inside the same NPS. - It works like building a small portfolio with aggressive, balanced or conservative choices. 4️⃣ Fees increased but still very low - Charges moved from 0.09% to 0.30%. - But mutual funds usually charge 1 to 2%, and even direct plans start around 0.5 to 1%. - Over 30 years, this gap can add up to lakhs because lower costs support compounding. 5️⃣ Proposed changes (not confirmed yet) - Annuity requirements may drop from 40% to 20%. - Investment age might extend from 75 to 85. Both of these can push long term compounding even higher. Which change feels most useful to you? #GovernmentScheme #WealthBuilding

Let’s be real: Most people have NO idea where their pension’s actually at. I’ve sat with smart, successful people who’ve: ➡️Got 3–5 old workplace pensions scattered about ➡️Not checked them since they left the job ➡️Have no clue how much is in any of them And look—I get it. Life’s busy. But this stuff matters. Because if you don’t sort it out, you could be leaving 💷💷💷's just floating around. Here’s what I’d do if I were you: 🔎Find ‘em all ➡️ Use the free pension tracing service at HMRC (just Google it). Takes 5 mins. ➡️ Some old pensions charge ridiculous amounts. You could be paying for admin costs that make zero sense. 📊Consolidate (if it makes sense) ➡️ One pot = less hassle. Easier to track, easier to grow. 🤯Actually log in now and then ➡️ This isn’t just a “future you” problem. It’s a today problem, too. Don’t let your future be messy just because your past jobs were. It's your money. Time to take it seriously.

Investors often overlook the power of time as a key asset, especially during turbulent market conditions. When volatility strikes, many choose to withdraw from the market, waiting for the perfect opportunity to invest. Remaining resilient and remembering the adage “it’s time in the markets, not timing the markets” tends to reward long-term investors. When it comes to long-term investing, planning for your retirement, is the longest time horizon you can invest for. Last week, Larry and I were in Ireland to celebrate 10 years of the Ireland Strategic Investment Fund (ISIF), a great example of the positive impact of long-term investing for Irish citizens. It is also amazing to see that with the changes to auto-enrolment coming in September, 800,000 workers between 23 and 60, earning more than €20,000, will benefit from being enrolled into their company pension plan. However, according to our Read on Retirement report published last month, four in five Irish workers are still not aware of the upcoming changes, and only 41% of Irish workers feel they are on track for a reasonable standard of living in retirement*. The introduction of auto-enrolment presents a once-in-a-generation opportunity to help bridge these gaps in retirement readiness. With auto-enrolment, most workers will have their own pension in addition to the State Pension upon retirement. And with contributions from both employers and the government, individuals will be able to gradually build their pension savings and ensure a better retirement income overall. By staying invested and making informed decisions about their retirement plans, workers can secure a better future and retire with dignity. *Source: Ireland Read on Retirement Survey, BlackRock, March 2025

In her first Mansion House speech, Rt Hon Rachel Reeves announced the creation of Canadian- and Australian style- “megafunds” through the consolidation of the defined contribution market and Local Government Pension Schemes. It was nice to have some positive news for a change, so we helped pen and signed a letter with the Startup Coalition, BioIndustry Association (BIA), techUK, UK Business Angels Association, Founders Forum Group, Tech Nation and UK Day One Project One which broadly welcomed the announcement. It would be remiss if I didn’t share the paragraph from the press release that raises some slight concerns: “Local economies will be boosted by the changes as each Administering Authority will be required to specify a target for the pool’s investment in their local economy, working in partnership with Local and Mayoral Combined Authorities to identify the best opportunities to support local growth. If each Administering Authority were to set a 5% target, that would secure £20 billion of investment in local communities.” However, there is clearly wiggle room, and subsequent statements by Pensions Minister Emma Reynolds suggests the government isn’t looking to politicise investment: “She said the government will not tell pension fund managers they must invest more in private equity but due to the larger scale they will be able to invest in a ‘broader range of assets, and that’s what we see in Canada and Australia.’” But just in case, I would direct them to the case of the University of Rochester. In the early 1970s, it had the third largest endowment in the US, after Harvard and the University of Texas. However, the administrators decided to invest locally in companies such as Kodak and Xerox, which suffered in the 1970s and 1980s. As a result, the university had to dramatically downsize in the mid-1990s. We also welcome the Chancellor’s backing of PISCES, which has been a massively underreported innovation. It will offer new avenues for private companies and investors to trade shares. As Nick Graves, Partner at Burges Salmon LLP, wrote: “Participating on PISCES will support companies to scale up and grow, providing liquidity, helping shareholders, including employee shareholders, to realise their gains, and providing an opportunity to companies to rationalise their shareholder base. Investors will gain better access to exciting companies while also benefiting from greater transparency and efficiency than available in private markets.”

A 38-year-old, retired with ₹8 crore, now spends his days at a counselling centre. He worked relentlessly for 18 years, built a massive corpus, and decided to go “FIRE” because many of his US friends were doing the same. ₹8 crore is enough… right? Single, no kids, no major obligations, investments that can fund 30–40 years. Yet here he is…depressed and having suicidal thoughts. Because while he planned for FI (Financial Independence), he never planned for RE (Retire Early). And this is the mistake many 25- to 45-year-olds are making today. They assume financial independence = early, comfortable retirement. It’s not. These are two different concepts. Mixing them can ruin your mental health. Financial independence gives you the freedom to choose… work less, change careers, travel, start a business… without worrying about bills. But it doesn’t mean you can or must retire early. Retirement ends active work and structure. Without purpose, it can quickly become lonely, exhausting, and frustrating. Your friends will still be working. Your partner (if any) will have their own routine. Family will be busy. The “freedom” can soon feel like emptiness. Financial independence can fund your life. But it can’t give it meaning. So if you’re planning early retirement alongside financial independence, you must also plan how you’ll use your time and energy once you stop working… how you’ll keep your body, mind, and brain active. Whether it’s through hobbies, travel, consulting, side-hustles, volunteering, or learning… You must follow what gives you a routine, growth, and connection. Retirement without purpose is a recipe for depression and anxiety, which even ₹20 crore can’t compensate for. So, don’t blindly chase FIRE without planning for the life that follows.

I recently received a comment from a financial advisor on one of my posts asking how to encourage investors to spend with confidence during the decumulation phase, when retirees begin withdrawing from their savings. This will take some time, especially if they’ve just entered retirement. They need to shift their mindset from “save and don’t touch it,” to “it’s okay to spend to enjoy my retirement.” That mindset shift is definitely easier in certain markets, but when the market enters bear territory, investors may be especially worried about the sustainability of their retirement funds. There are a few things you can do. First, make sure your clients remain in their long-term, diversified portfolios. Next, present a historical perspective: the markets go up and they go down. Lastly, help customize a withdrawal strategy to match what’s happening in the markets. Adjusting spending by as little as 5% can dramatically increase an investor’s probability of success. While this may lead to a short-term decrease in spending ability, it allows an investor to navigate rough patches and ensures their accumulated assets continue to last throughout retirement–so they can spend with confidence! https://lnkd.in/eWiEtCq3

Don't let your pension catch you out✋ I get daily Instagram DMs that read "'I've had so many jobs I have no idea if I have a pension, let alone how much is available" Over £19 billion is 'lost' in forgotten pensions in the UK leaving any substantially worse off in retirement. Pensions can be 'lost' when you move jobs as your membership of that workplace pension scheme ends. On average, you'll change jobs 6 times in your working life. That's 6 potential pension pots you're unaware of. A lack of understanding of how to manage pension savings results in many being substantially worse off in retirement. But not if you follow these simple steps: 💻 Access your old pensions using the Gov website to 'find pension contact details' 🔎 Search for any old companies and it will show each pension provider 💰Find out how much you have Now it's time to make some decisions💭 Do you want to leave your pensions separate or combine them using a single provider or tool? There's no rush to decide right away, but it's worth considering in the future what option works best for you. This is yet another example of why financial education is so vital. Being able to make informed financial decisions is invaluable, leaving individuals empowered in many aspects of their life. At Elent we're breaking barriers to financial education teaching the finance education we wish we had to schools and workplaces across the UK 🌎

When I talk to people about FIRE, I notice one common pattern. Many of us still look at our parents’ retirement and assume our life will follow the same template. It feels natural because we saw them manage with limited income, simple expenses and a very predictable lifestyle. But our reality is very different. Our generation will live longer. We will spend more. We will not have pensions to fall back on. We will have fewer children to depend on. And we will face medical costs that our parents never imagined. The world we are retiring into is not the same as the world they retired into. Let me share a simple scenario. Many of our parents managed their retirement comfortably with thirty to fifty thousand rupees a month. They had fewer bills, fewer lifestyle expenses and very basic expectations from life. Their cost of living was lower and their medical needs were not as frequent or as expensive. Now imagine you suddenly retiring today at the age of 60. Can you run your current lifestyle on fifty thousand rupees a month? Most people say no within five seconds. And that quick answer itself shows how different our lives are. This is why it is important to know how much you actually need to maintain your standard of living in the future. The only way to arrive at a realistic retirement number is to understand your expenses with honesty. We need to carefully look at two buckets. 👉 The expenses that will stop • Children’s education • Home loan EMIs • Daily commute expenses • Work-related costs • Certain lifestyle spends that reduce with age And… 👉 The expenses that will increase • Health insurance premiums • Regular medical tests • Doctor visits • Medicines • Support systems at home • Travel for seeing family • Cost of managing two people instead of a full family Once you understand these two buckets, your retirement number becomes clearer. And once the number is clear, your FIRE plan becomes practical instead of confusing. You know exactly what you need to work towards. FIRE is not about copying your parents’ story. It is about planning for your own life, your own lifestyle and your own future needs. The more honest you are about these expenses, the more confidently you can build your FIRE corpus. I write about #artificialintelligence | #technology | #startups | #mentoring | #leadership | #financialindependence   PS: All views are personal Vignesh Kumar

I discovered FIRE could cut 20+ years off my retirement timeline. Most people believe early retirement is only for the ultra-wealthy or tech professionals with foreign salaries. The data tells a different story. A 28-year-old earning ₹12 lakh annually can potentially achieve FIRE by 45 through disciplined mutual fund investing and stepping up their savings rate to 50%. I've spent the last 3 years researching how ordinary professionals are breaking free from the 9-5 grind decades before their peers. The secret isn't extraordinary income—it's strategic allocation and disciplined investing. I have witnessed an investor in my previous organization who started with just ₹10,000 monthly SIPs at 25. By 35, her portfolio had grown to ₹24 lakhs. By maintaining this discipline, she was on track for FIRE by 42. The mutual fund landscape in India has matured significantly. Average 10-year returns for equity funds have outpaced inflation by 6-8%, creating a viable path to financial freedom. 🔍 Here's the 5-step blueprint I've refined after coaching dozens through their FIRE journey: [1] Understand different FIRE approaches: Lean, Regular, Fat, Barista, or Coast—each has its own strategy (explanation shared in comments). Choose what fits your lifestyle best! [2] Choose between Lean FIRE (minimal lifestyle) or Fat FIRE (luxurious retirement) based on your values, not others' expectations. [3] Build a three-tiered mutual fund portfolio: equity funds for growth, hybrid funds for stability, and debt funds for safety. [4] Automate investments ruthlessly and review quarterly, not daily (psychological freedom matters). [5] Create multiple income streams during the accumulation phase to accelerate your timeline. The most powerful aspect of FIRE isn't the retirement—it's the freedom to make choices based on passion rather than necessity. Curious—what's your biggest obstacle to achieving financial independence? Is it income, discipline, or knowing where to start? Finance professionals and FIRE enthusiasts, what's one unconventional tip you'd add to this blueprint? #FinancialIndependence #MutualFundInvesting #FIREMovement #PersonalFinance