Customise Your Portfolio To Align It With Retirement Goals

Retirement planning is more than just saving—it’s about ensuring your money lasts throughout your life. During the webinar “The Art of Deploying Your Retirement Corpus,” part of the Retire Right series by Outlook Money and Aditya Birla Sun Life Mutual Fund, experts shared practical tips on how to manage your funds post-retirement. Moderated by Nidhi Sinha, Editor at Outlook Money, the session featured K.S. Rao, Head of Investor Education and Distribution Development at Aditya Birla Sun Life AMC; Suraj Kaely, Founder & Master Coach of the sales accelerator & retirement income course; and Suresh Sadagopan, SEBI-Registered Investment Adviser and Founder of Ladder 7 Financial Advisories. The series is a part of the investor education initiative of Aditya Birla Sun Life Mutual Fund and Outlook Money.

Managing the Distribution Phase

K.S. Rao kicked off by highlighting the importance of the distribution phase, where the focus shifts from saving to spending your retirement funds wisely. He introduced the concept of GOLD: Gainfully engaged, Optimally invested, Lifestyle management, and Discipline. He cautioned against the common mistake of spending too much too soon, such as splurging on big purchases right after retirement. His advice was simple: plan for a steady income stream so that you can maintain your lifestyle without compromising your financial security.

Balancing Risks and Inflation

Suraj Kaely warned about the damaging effects of inflation on retirement savings. “Inflation is like a slow poison,” he said, noting how it can drastically reduce your purchasing power over time. Kaely recommended maintaining a balanced portfolio with both fixed income and equity investments to counter inflation. He also suggested limiting drawdowns to 20% of your corpus and keeping withdrawals under 5% per year to ensure sustainable income.

Customising Your Portfolio

Suresh Sadagopan focused on tailoring retirement portfolios to individual needs. He emphasised that restructuring should begin in your 50s to align with post-retirement goals. While expenses may drop after retirement, keeping liquidity for unexpected events is key. Sadagopan also pointed out the psychological aspect—many retirees feel financially insecure despite having substantial assets, so maintaining liquidity is essential for peace of mind.

On the topic of annuities, Sadagopan explained that while they offer a steady income, they can be less flexible and often yield lower returns than other options like systematic withdrawal plans (SWPs).

Key Takeaways

The panel agreed on three major points: start retirement planning early, build an inflation-proof portfolio, and maintain liquidity for emergencies. Most importantly, as Rao said, “Retirement is not the end but a new beginning.” With the right financial approach, you can enjoy this phase of life without stress. For further insights, the full webinar is available on the Outlook Money website, offering valuable advice no matter your stage of retirement planning.