Investment

Let me tell you about two of the people I worked with (names changed for privacy). Rajesh, 62, just launched his third startup after “retiring” from his corporate career. And Priya, 58, is meticulously planning her dream solo Euro-trip now that her children have settled abroad.

Five years ago, I would have called them outliers. Today, they represent the new reality of India’s seniors – healthier, wealthier, and seeking dramatically more out of life than any previous generation.

However, when I review the financial plans of people in their 50s and beyond, I see the same outdated frameworks we’ve been using for decades. I see them still using the ancient playbook of calculating a retirement corpus at 50, parking it in “safe” fixed deposits, and hoping the FDs would outlast them.

But, here’s the uncomfortable truth I’ve learned: Life expectancy in India has jumped from 54 years in 1990 to over 70 years today. Many of the people I worked with, who are already in their 50s, will live 30+ years after turning 60, and that’s longer than their entire careers.

This isn’t just outdated thinking. It’s financially flawed.

Why I Stopped Recommending “One-Time”

Retirement Planning

After working with hundreds of people across ages and different market cycles, I’ve seen the same pattern repeat: the people who struggle aren’t those who saved too little – they’re the ones who planned once and never adapted.

Traditional retirement planning was designed for work until age 60, receiving a pension, and living quietly for 10-15 years. Simple. Predictable. Over.

Today’s retirement is a different ballgame.

Here’s what I tell every client: “We prepare in phases for everything – your child’s education, your career progression, even buying a home. But retirement? We still treat it like a one-day event rather than a three-decade journey.”

The Four Flaws I See in Every Traditional Plan

In my 30+ years of experience, I’ve identified four critical mistakes that render most retirement plans obsolete:

Flaw #1: The “Retirement = Inactivity” Assumption

The biggest misconception I encounter is that retirement means withdrawal from life. 60-year-olds today have the health and ambition that 45-year-olds had a generation ago. They’re launching businesses, learning digital skills, and relocating to their dream cities.

Their parents retired to rest. They’re retiring to reset.

Flaw #2: Ignoring the New Retirement Aspirations

When I started my career, retirement planning meant calculating basic living expenses plus medical costs.

Now? People I know want budgets for:

● Extensive domestic and international travel

● Premium healthcare and wellness programs

● Lifelong learning and skill development

● Second careers and entrepreneurial ventures

These aren’t luxuries but the new baseline expectations.

Flaw #3: The “Save and Forget” Mentality

Here’s what I’ve learned from managing portfolios through multiple market cycles: The biggest risk isn’t market volatility, it’s outliving your money.

Most plans obsess over accumulating a corpus but completely ignore the challenge of making that money last and grow over 30+ years. With inflation consistently eroding purchasing power, a static approach guarantees declining living standards.

Flaw #4: One-Size-Fits-All Planning

This one particularly troubles me. Take women, for example. They live 2-3 years longer than men but typically have 20-30% lower lifetime earnings. Yet I see the same planning templates applied to everyone.

The result? I’ve counselled too many women who’ve outlived both their spouses and their money.

My Framework: The Dynamic Retirement Strategy

After years of seeing static plans fail, I’ve developed what I call the “Dynamic Retirement Strategy.” Here are the core principles I now advocate:

Principle #1: Plan for 100, Not 75

Medical advances are accelerating. The 60-year-old sitting in an office today may need their money to last 40 more years. This single mindset shift changes everything: how much to save, how to invest, how to structure withdrawals.

Principle #2: The 5-Year Review Rule

I now insist everyone I work with to review and revise their plans every 5-7 years. Life changes. Health evolves. The family needs shifts. Markets move.

Your financial plan must be a living document, not a museum piece.

There’s a gentleman who had initially planned for a quiet retirement in his hometown, but at 65, decided to relocate to Goa and start a restaurant. His original plan would have been disastrous. The revised plan? He’s happier than he was in his corporate role.

Principle #3: Growth Investing Doesn’t End at 60

Pure debt instruments, our industry’s default recommendation for retirees, simply won’t cut it for longer lifespans and the changing world order.

I now recommend balanced portfolios with equity exposure even for people who are in their late 60s. Yes, there’s volatility. But the alternative, guaranteed purchasing power erosion, is worse.

Principle #4: Plan for Lifestyle changes and Inflation, not Just Medical costs

Everyone plans for rising healthcare costs. Few plan for rising lifestyle expectations. The retirement budget that feels adequate at 60 often feels constraining at 70.

Today, people don’t want to downgrade their lives in retirement. They want to upgrade them. The financial plan must account for this reality.

Principle #5: Women Need a Different Strategy

Based on my experience, women need:

● More aggressive saving during working years

● Different asset allocation approaches

● Higher corpus targets to account for longevity

It’s not complicated. It’s just different.

Principle #6: Multiple Income Streams Are Essential

I do not recommend relying solely on fixed deposits and pensions. In my most successful cases, people have diversified income streams: rental properties, dividend stocks, part-time consulting, and even small business ventures.

One client generates more income from his post-retirement photography business than his previous corporate salary. Another earns steady rental income from properties she bought strategically during her working years.

The Industry Must Catch Up

The generation entering retirement today doesn’t want to rest; they want to redesign. Are we equipped to help them?

We need:

● Products designed for 30-year retirement journeys, not 10-year wind-downs

● Planning tools that adapt to changing circumstances

● Investment options that balance growth with stability over extended

periods

● Specialised approaches for different demographics and life situations

The transformation is already beginning. Progressive advisors are moving from “corpus calculations” to comprehensive “strategy frameworks.” But we need to move faster.

What You Should Do Right Now

If you’re reading this and approaching or already in retirement, here’s my advice:

Immediate Actions:

1. Audit your current plan: When was it last updated? Does it assume you’ll live to 85 or 95?

2. Stress-test your assumptions: What if inflation averages 6% instead of 4%? What if you need care for 10 years instead of 5?

3. Diversify beyond traditional options: Are you too dependent on fixed deposits?

Consider working with advisors who understand modern retirement realities. Look for those who talk about “retirement strategies” rather than just

“retirement corpus.”

The Bottom Line

After 30+ years in this industry, I can say with certainty: Your parents’ retirement strategy won’t work for your retirement reality.

The old playbook of “work, save, retire, rest” is obsolete. The new playbook, “work, save, retire, redesign, adapt, thrive”, requires dynamic thinking and flexible planning.

I’ve seen too many retirees struggle not because they didn’t save enough, but because they planned once and never adapted. Don’t let that be your story.

The demographic transformation is creating both unprecedented challenges and remarkable opportunities. The people I work with today are living longer, more active, more fulfilling lives than any previous generation.

But only if their financial plans keep up.

The shift from static corpus to dynamic strategy isn’t coming. It’s already here.

The question is whether you’ll adapt fast enough to make the most of these additional decades of life.

Because trust me, they can be the best decades yet.