A remarkable retirement:
THE BIG THINK
A remarkable retirement:
Finding balance between enjoyment and security
By David Crosoer, PPS Investments Chief Investment Officer
Retirement marks the beginning of a new and exciting chapter – a time to explore passions, embrace freedom and live more fully. But like any great adventure, it requires balance. On one side is the desire to enjoy your hard-earned savings; on the other, the need to make those funds last. Walking this tightrope may seem daunting but you can confidently move forward with a well-structured financial plan acting as your steadying pole. With each step, you are not just securing your future – you are creating space for the remarkable experiences that make retirement truly rewarding.
Imagine a newly retired couple torn between pinching rands and cents and finally ticking off the adventures on their bucket list. Many retirees face this dilemma: spend too cautiously and miss out on life’ s joys or spend too freely and risk running out of money. It is a balancing act that stirs anxiety in many, especially when it is time to draw from those hard-earned savings. But these fears also point to something more hopeful: the desire to make retirement count.
THE RETIREE’ S DOUBLE-EDGED SWORD
It is no surprise that longevity is a double-edged sword in retirement. Living longer is a gift but it also means your money must stretch further. Longevity risk – the danger of outliving your savings – remains one of the top concerns for retirees. Yet some end up underspending despite having sufficient savings, driven by fear or a lack of understanding about safe withdrawal strategies. Others are lured by the joy of finally spending freely, only to worry later about their financial future.
Both outcomes are equally limiting. Either way, you miss the full potential of what retirement could be: a time to live more, not less. A time to be generous – with your time, your energy and your resources. The key lies in having a plan that removes uncertainty and enables both enjoyment and endurance.
After all, retirement should be remarkable, not restrained – a season where you explore, connect and contribute in meaningful ways.
INFLATION, VOLATILITY AND WITHDRAWAL RATES Retirees today navigate a minefield of financial challenges.
Inflation is a silent thief, eroding purchasing power slowly but surely. Even modest inflation can force retirees to withdraw more just to maintain the same standard of living. Market volatility adds another layer of concern, particularly when it strikes early in retirement. Such timing can drastically reduce the lifespan of your portfolio.
This is why identifying a prudent withdrawal rate is essential. It allows retirees to enjoy a comfortable life without depleting their funds too quickly. But more importantly, it supports a sustainable lifestyle that allows for consistency and peace of mind – so retirees can confidently pursue those oncedistant dreams.
And here is the truth: remarkable experiences often require thoughtful, intentional spending.
MIND OVER MONEY: BEHAVIOURAL BIASES AT PLAY
Even with a sound financial plan on paper, our own psychology can derail our intentions. Behavioural finance shows us that biases – like the planning fallacy or anchoring – can affect how we approach spending in retirement. The planning fallacy causes people to rely on overly optimistic assumptions, while anchoring might make retirees
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