How to “Enjoy” Your Golden Years: 9 (Step-by-Step) Retirement Rules

Introduction:

I often meet retirees who, despite having a solid financial base, continue to live as if they are still in their earning years — worried, cautious, hesitant to spend.

One recent afternoon, while walking in Lodhi Garden with a long-time client, he said, “Taresh, my children keep telling me to spend, but I feel guilty every time I buy something more than I need.”

It’s a mindset I’ve seen too many times.

Retirement should be your season of joy — a time when you can slow down and actually enjoy the fruits of decades of hard work. Yet, fear, social conditioning, and old money habits often hold people back.

Through my work as a CFP® and founder of The Richness Academy, I have guided hundreds of retirees on how to break free from the scarcity mindset, plan smartly, and truly live their golden years.

Here are my 9 step-by-step rules for doing just that.

Rule 1: Start With a Guilt-Free Mindset

Before we talk numbers, investments, or strategies, let’s start with your inner dialogue.

If you’ve always been the provider, the saver, the protector — spending freely on yourself may feel unnatural. Many of my retired clients hoard their savings for their children, often at the cost of their own health or dreams.

Anecdote:

I once advised a retired school principal who had saved ₹2 crore. She lived frugally, refusing even a new pair of spectacles because “beta, this money is for my son’s future.” The irony? Her son, an IT professional in Canada, was earning far more than she ever did. When she finally gave herself permission to take a solo Europe trip, she said it was the happiest month of her life.

Action Steps:

• Remind yourself: This is YOUR money, earned by YOUR hard work.

• Understand that using it for your comfort is not “wasting” it — it’s honoring your effort.

• Make a “Guilt-Free List” of things you always wanted but postponed.

Rule 2: Secure Your Core Income First

The foundation of a stress-free retirement is knowing your essentials are covered without dipping into your investments every month.

Anecdote:

A retired couple I advised in Gurugram were constantly anxious about market fluctuations. We ring-fenced ₹50,000 per month of essential expenses through a mix of SCSS, PMVVY, and laddered FDs. Once they saw that their basics were covered for 10 years regardless of markets, they finally booked a 15-day cruise.

Action Steps:

• Calculate your monthly essential expenses (housing, groceries, utilities, medical).

• Cover these via fixed income instruments — Senior Citizen Savings Scheme (SCSS), PM Vaya Vandana Yojana, RBI Floating Rate Bonds, and laddered Fixed Deposits.

• Keep at least 2 years’ expenses in liquid assets for emergencies.

Rule 3: Keep Pace With Inflation

If your investments only match your current expenses, you will feel poorer every year. Inflation silently eats into your purchasing power.

Anecdote:

A retired bank manager once told me he had “locked in” his money at 7% FD rates. He didn’t realize that his medical costs were rising at 12% annually. The gap was eating into his savings faster than expected.

Action Steps:

• Understand that inflation for retirees is higher due to medical and lifestyle costs.

• Allocate 20-30% of your portfolio to growth assets that beat inflation (equity mutual funds, hybrid funds, REITs).

• Review inflation impact yearly and adjust allocations.

Rule 4: Invest Smartly for Growth and Legacy

Money you intend to pass on can and should be invested in growth-oriented assets. This not only fights inflation but also gives your children a legacy that grows over time.

Anecdote:

One of my clients left ₹50 lakh in a balanced advantage fund for his grandchildren. In 12 years, without touching it, the corpus grew to over ₹1 crore — enough to fund their higher education in India or abroad.

Action Steps:

• Separate your legacy portfolio from your spending portfolio.

• Use equity, equity-oriented hybrids, and even global funds for the legacy portion.

• Automate SIPs even in retirement to keep wealth compounding.

Rule 5: Stop Being the “Over-Provider”

Many retirees keep giving too much financial support to adult children, sometimes jeopardizing their own needs.

Anecdote:

A Delhi-based retired officer used to give ₹50,000 per month to his married son, despite the son earning ₹1.2 lakh. When I showed him how this would drain his corpus in 8 years, he reduced it to occasional gifts and instead invested the saved amount in his health fund.

Action Steps:

• Discuss boundaries with your children openly.

• Offer emotional and advisory support, but don’t become the ATM.

• Remember: financial independence is a gift to both generations.

Rule 6: Set Aside a ‘Freedom Fund’

This is a pool of money just for fun, hobbies, and experiences. No guilt. No second-guessing.

Anecdote:

A retired Air Force officer set aside ₹15 lakh as his “travel fund.” He said, “Every time I see this account, I feel like booking tickets.” In 5 years, he visited 10 countries without worrying about expenses.

Action Steps:

• Decide the size of your Freedom Fund (5–10% of total assets).

• Keep it in a liquid or short-term debt fund for easy access.

• Use it only for joy — travel, hobbies, courses, celebrations.

Rule 7: Live the Life You Imagined — Now

You’ve worked decades for this phase. Use your money to create experiences, not just maintain existence.

Anecdote:

One of my clients in Jaipur always wanted to learn pottery. At 67, she finally joined a studio. “It’s the happiest part of my week,” she said. The cost? ₹3,000 per month — a tiny fraction of her retirement budget.

Action Steps:

• Make a retirement bucket list.

• Schedule at least one new experience every quarter.

• Spend on health, learning, and travel without hesitation.

Rule 8: Make Your (and Your Spouse’s) Desired Heartfelt WILL

A WILL is not about death — it’s about clarity, respect, and avoiding family disputes.

Anecdote:

A client passed away without a WILL, leaving behind multiple properties. His children spent 4 years in legal battles before they could even rent them out. A simple registered WILL could have avoided this.

Action Steps:

• Write and register a WILL clearly naming executors and beneficiaries.

• Update it every 3–5 years or after major life changes.

• Include your spouse’s wishes equally.

Rule 9: Consult a CERTIFIED FINANCIAL PLANNER®

Retirement is too important to be left to guesswork or hearsay from relatives.

Anecdote:

A retired businessman came to me after investing in 3 “high-return” schemes suggested by friends. All three collapsed. Today, with a proper plan, his portfolio is back on track — but it took years to recover.

Action Steps:

• Work with a CFP® professional who understands your goals, risk profile, and tax situation.

• Review your plan annually to adjust for market, health, or lifestyle changes.

• Avoid decisions based solely on “what others did.”

Conclusion:

Your golden years are not meant for financial anxiety. They’re meant for peace, joy, and fulfillment. Following these 9 rules can transform your retirement from a cautious survival plan into a confident, guilt-free lifestyle.

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