HomeRetirement PlanningHow to Achieve a Peaceful and Relaxed Retired Life

How to Achieve a Peaceful and Relaxed Retired Life

Retirement planning is a journey that begins long before you retire and continues well into your golden years. It involves several phases, each with its unique set of challenges and opportunities. The key to a peaceful and relaxed retired life lies in understanding these phases and taking deliberate, persistent steps to navigate them successfully. This comprehensive guide will walk you through the pre-retirement phase, the accumulation phase, planning, investment strategies, the preparation for retirement phase, the retirement phase, and finally, the post-retirement phase, which includes creating a will and estate planning.

Pre-Retirement Phase

The pre-retirement phase is the period when you start thinking about your retirement goals and laying the groundwork for your future. This phase typically begins in your late 30s or early 40s, though it’s never too early to start planning for retirement. The focus during this phase is on setting clear, realistic retirement goals and developing a roadmap to achieve them.

  1. Assessing Your Current Financial Situation: Begin by evaluating your current financial status. This includes understanding your income, expenses, debts, and savings. A clear picture of your finances will help you set realistic retirement goals.
  2. Setting Retirement Goals: Think about what you want your retirement to look like. Do you want to travel, pursue hobbies, or spend more time with family? Your goals will influence how much money you need to save and how you should invest.
  3. Creating a Financial Plan: Develop a comprehensive financial plan that outlines your income sources, savings targets, and investment strategies. This plan should be flexible enough to adapt to changes in your life and the economy.
  4. Building an Emergency Fund: Ensure you have an emergency fund that covers at least six months of living expenses. This fund will provide a financial cushion in case of unexpected expenses or changes in your income.

Accumulation Phase

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The accumulation phase is when you actively save and invest to build your retirement nest egg. This phase is critical because the amount you save and how you invest will significantly impact your retirement lifestyle.

  1. Maximizing Contributions to Retirement Accounts: Take full advantage of retirement accounts like EPF, PPF, and NPS in India. These accounts offer tax benefits and compound interest, which can significantly boost your savings.
  2. Investing in a Diversified Portfolio: A diversified investment portfolio reduces risk and increases the potential for returns. Consider a mix of stocks, bonds, mutual funds, and real estate based on your risk tolerance and time horizon.
  3. Automating Savings: Set up automatic transfers to your retirement accounts. Automating savings ensures consistency and takes advantage of dollar-cost averaging, where you buy more shares when prices are low and fewer when prices are high.
  4. Monitoring and Adjusting Investments: Regularly review your investment portfolio and make adjustments as needed. Rebalance your portfolio to maintain your desired asset allocation and adjust your investments based on changes in your goals or risk tolerance.
  5. Reducing Debt: Aim to pay off high-interest debts like credit cards and personal loans. Reducing debt frees up more money for savings and investments.


Effective planning is the cornerstone of a successful retirement strategy. This phase involves setting specific, measurable goals and developing a detailed plan to achieve them.

  1. Estimating Retirement Expenses: Calculate your expected expenses in retirement, including housing, healthcare, travel, and daily living costs. Factor in inflation and potential changes in your lifestyle.
  2. Determining Income Sources: Identify all potential sources of income during retirement, such as pensions, annuities, rental income, and investment returns. Ensure you have multiple income streams to reduce reliance on any single source.
  3. Creating a Retirement Budget: Develop a detailed retirement budget that outlines your expected income and expenses. A realistic budget helps you manage your finances and avoid overspending.
  4. Planning for Healthcare Costs: Healthcare can be a significant expense in retirement. Consider purchasing health insurance or a medical plan to cover potential medical expenses.
  5. Consulting with a Financial Advisor: Seek the advice of a certified financial planner who can help you create a personalized retirement plan. A professional can provide valuable insights and help you navigate complex financial decisions.

Investment: Persistent and Wise Decisions

Investment decisions play a crucial role in building and preserving your retirement savings. Persistence and wise decision-making are essential for successful investing.

  1. Understanding Risk Tolerance: Assess your risk tolerance and invest accordingly. Younger investors can typically afford to take more risks, while those closer to retirement should focus on preserving capital.
  2. Staying Informed: Keep abreast of market trends and economic news. Staying informed helps you make better investment decisions and adapt to changing market conditions.
  3. Avoiding Emotional Decisions: Investment markets can be volatile, and it’s easy to make emotional decisions during market swings. Stick to your investment strategy and avoid making impulsive moves.
  4. Rebalancing Your Portfolio: Regularly rebalance your investment portfolio to maintain your desired asset allocation. Rebalancing ensures that your investments align with your risk tolerance and financial goals.
  5. Diversifying Investments: Diversification spreads risk across different asset classes and reduces the impact of market volatility on your portfolio.

Preparing for Retirement Phase: Consolidation Phase

As you approach retirement, it’s essential to transition from an accumulation mindset to a consolidation strategy. This phase involves preserving your wealth and ensuring you have enough funds to support your retirement lifestyle.

  1. Reducing Risk: Shift your investment focus from high-growth assets to more conservative, income-generating investments. This helps protect your savings from market downturns.
  2. Consolidating Assets: Simplify your financial life by consolidating accounts and investments. Consolidation makes it easier to manage your finances and reduces administrative costs.
  3. Creating a Withdrawal Strategy: Develop a systematic withdrawal plan that ensures your savings last throughout your retirement. Consider factors like life expectancy, inflation, and investment returns when creating your plan.
  4. Reviewing Insurance Needs: Evaluate your insurance coverage and consider purchasing long-term care insurance to cover potential healthcare costs in retirement.
  5. Planning for Social Security and Pension Benefits: Understand the rules and benefits of social security and pensions. Plan the timing of your withdrawals to maximize your benefits.

Retirement Phase: Systematic Withdrawal Plan

The retirement phase is when you start enjoying the fruits of your labor. A systematic withdrawal plan ensures you have a steady income stream while preserving your savings.

  1. Implementing Your Withdrawal Strategy: Follow your withdrawal plan to ensure a steady income stream. Withdraw funds from your retirement accounts strategically to minimize taxes and maximize income.
  2. Adjusting Your Budget: Regularly review your retirement budget and adjust it based on your actual expenses. Be flexible and make changes as needed to stay on track.
  3. Managing Income Sources: Ensure you have multiple income streams, such as pensions, annuities, rental income, and investment returns. Diversifying income sources reduces reliance on any single source and provides financial stability.
  4. Monitoring Investments: Continue to monitor your investment portfolio and make adjustments as needed. Rebalance your portfolio to maintain your desired asset allocation and ensure your investments align with your financial goals.
  5. Staying Active and Engaged: Retirement is an excellent time to pursue hobbies, volunteer, or travel. Staying active and engaged enhances your quality of life and contributes to a fulfilling retirement.

Post-Retirement Phase: Preparing for Your Will and Estate Planning

The post-retirement phase involves ensuring your assets are distributed according to your wishes and that your loved ones are taken care of. Professional estate planning is crucial for this phase.

  1. Creating a Will: A will is a legal document that outlines how you want your assets distributed after your death. Work with an attorney to create a comprehensive will that reflects your wishes.
  2. Establishing a Trust: Consider setting up a trust to manage and distribute your assets. Trusts can provide tax benefits and help protect your assets from creditors.
  3. Naming Beneficiaries: Ensure all your financial accounts and insurance policies have designated beneficiaries. Regularly review and update beneficiary designations to reflect changes in your life.
  4. Planning for Estate Taxes: Understand the estate tax laws in your country and develop strategies to minimize taxes on your estate. Work with an estate planning professional to create a tax-efficient plan.
  5. Communicating Your Wishes: Discuss your estate plan with your family and loved ones. Clear communication ensures everyone understands your wishes and reduces the potential for disputes.
  6. Updating Legal Documents: Regularly review and update your will, trust, and other legal documents to reflect changes in your life or the law.

Also read: How SWP Can Unlock Retirement Riches: Wisdom from Taresh Bhatia, Financial Maestro


Retirement planning is a lifelong journey that requires persistence, wise decisions, and careful planning. By understanding and navigating the pre-retirement phase, accumulation phase, planning, investment strategies, preparation for retirement phase, retirement phase, and post-retirement phase, you can achieve a peaceful and relaxed retired life. Remember to seek the guidance of a certified financial planner, like Taresh Bhatia, to help you on your path to financial freedom. With perseverance and informed decisions, you can secure a happy, worry-free retirement and enjoy your golden years to the fullest.

Understanding the Importance of Early and Consistent Retirement Planning

To illustrate the impact of inflation and the importance of starting your retirement planning early, let’s consider a scenario:


  • Current Age: 40 years
  • Current Monthly Expense: ₹1,00,000
  • Inflation Rate: 7% annually
  • Retirement Age: 60 years
  • Projected Monthly Expense at Age 60: ₹3,65,000
  • Life Expectancy: 85 years (considering either you or your spouse)

To maintain your lifestyle post-retirement, considering the inflation rate, your monthly expenses will rise significantly by the time you reach 60. Let’s break down the numbers:

Projected Monthly Expense at Age 60

To calculate the future value of your current monthly expense accounting for inflation: Future Monthly Expense=Current Monthly Expense×(1+Inflation Rate)Years\text{Future Monthly Expense} = \text{Current Monthly Expense} \times (1 + \text{Inflation Rate})^{\text{Years}}Future Monthly Expense=Current Monthly Expense×(1+Inflation Rate)Years Future Monthly Expense=1,00,000×(1+0.07)20≈3,86,968\text{Future Monthly Expense} = 1,00,000 \times (1 + 0.07)^{20} \approx 3,86,968Future Monthly Expense=1,00,000×(1+0.07)20≈3,86,968

So, by the time you are 60, your monthly expense will be approximately ₹3,86,968.

Retirement Corpus Needed

Next, we calculate the total corpus required to sustain this lifestyle from age 60 to 85, assuming a consistent withdrawal adjusted for 7% inflation.


  • Annual Return Post-Retirement: 7% (matches the inflation rate)
  • Years in Retirement: 25 years

Given these conditions, the corpus required will need to support systematic withdrawals that increase with inflation. Using financial calculations or a retirement calculator, the required corpus can be approximated to ₹7.75 crores.

Monthly Investment Required

To accumulate this corpus, you need to invest consistently. Let’s calculate the monthly investment required:

Future Value=Investment Amount per Month×((1+r)n−1r)×(1+r)\text{Future Value} = \text{Investment Amount per Month} \times \left( \frac{(1 + r)^n – 1}{r} \right) \times (1 + r)Future Value=Investment Amount per Month×(r(1+r)n−1​)×(1+r)


  • rrr = monthly rate of return = 12%12=1%=0.01\frac{12\%}{12} = 1\% = 0.01 1212%​=1%=0.01
  • nnn = number of months = 20 years ×\times× 12 months = 240 months
  • Future Value = ₹7.75 crores

Rearranging to solve for the Investment Amount per Month:

7,75,00,000=Investment Amount per Month×((1+0.01)240−10.01)×(1+0.01)7,75,00,000 = \text{Investment Amount per Month} \times \left( \frac{(1 + 0.01)^{240} – 1}{0.01} \right) \times (1 + 0.01)7,75,00,000=Investment Amount per Month×(0.01(1+0.01)240−1​)×(1+0.01)

Using a financial calculator or an appropriate formula tool, the monthly investment amount needed is approximately ₹80,000.

Illustration Summary

  • Current Age: 40 years
  • Current Monthly Expense: ₹1,00,000
  • Inflation Rate: 7%
  • Projected Monthly Expense at Age 60: ₹3,86,968
  • Required Corpus: ₹7.75 crores
  • Monthly Investment: ₹80,000 in an equity mutual fund (assumed 12% annual return)

Call to Action

For more exact calculations tailored to your specific needs and financial situation, connect with Taresh Bhatia at taresh@taresh.in)  or your financial planner.

Special Ebook: As an illustration and more details, Download ebook here


Retirement planning is an ongoing process that requires early and consistent effort. By understanding the impact of inflation and the importance of regular investments, you can secure a comfortable and worry-free retirement. Reach out to a financial planner like Taresh Bhatia to get started on your path to financial freedom.

The author of this article, Taresh Bhatia, is a Certified Financial Planner and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com

He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This article serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose article only and not any advice whatsoever.

©️2024: All Rights Reserved. Taresh Bhatia.

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