Why Adaptability Triumphs Having A Plan
New year, fresh start, great expectation and ambitious goals. Every new year is like an unspoilt sheet that allows us to start afresh, bathed in optimism and accompanied by grand plans. While making a plan is laudable and helps to navigate life, something else is more important.
We have all heard the phrase: ‘It’s not the strongest or the most intelligent of the species that survives but the one that’s most adaptable’. And nowhere is adaptability more crucial than in retirement because this phase is our second chance which we cannot afford to get it wrong.
Adaptability in Retirement
In retirement, the interplay between adaptability and rigid planning takes on a unique significance. While a retirement plan is essential for financial security and peace of mind, adaptability is equally, if not more, vital to navigate the complexities and uncertainties of life in retirement.
1. Life Transition
Retirement is a major transition into untrodden path, no matter how well you are prepared. Medical issues, family dynamics, market fluctuations, unforeseen events…they can upend even the most meticulously crafted retirement plans.
For example, if you retired during the global pandemic, you walked right into a crisis with no precedent. A planned leisurely life of travel and relaxation was rendered impossible with travel restrictions and border closures. Family members affected by prolonged lock-downs and office closures might have needed your help to pull through financially. In such scenarios, adaptability becomes paramount. Re-evaluate priorities, make adjustments to plans and finances to maintain not only your well-being, but those you hold dear too.
A retired friend accepted part-time work after being approached by his ex-company to help with projects when several expatriate workmates returned to their home country during the Covid outbreak. He accepted since his travel plans were upended anyway and he could work from home without needing to show up in the office. His adaptability meant upping his retirement lifestyle a few notches, more exotic travels once he stops work in 3-4 years.
2. Re-imagining Retirement
Adaptability empowers you to reimagine your retirement vision. As life unfolds, goals, priorities and aspirations evolve. Rigidly sticking to a retirement plan limits your ability to seize new opportunities and address changing needs.
For instance, you may have retired with the intention of growing gracefully old in your surrounding where everything is familiar. However, preferences shift over time and you may end up wanting to explore a completely different lifestyle. An adaptable approach allows you to reassess your options, make informed decisions and reshape your retirement path.
My un-retired friend is now pondering retirement in Europe after favourable impressions and learning more about lifestyle from his European counterparts over the past 3 years. With several retirement and digital nomad visas, such as in Spain and Portugal, something that never crossed his mind before becomes enticing now.
3. Financial Resilience
Financial adaptability is especially critical in retirement. Markets fluctuate, unexpected expenses arise, and the cost of living may spike sharply. A rigid financial plan that doesn’t account for these variables can leave you vulnerable.
Imagine a retiree who adheres strictly to the 4% withdrawal rule. During high inflationary period like the past 2 years, this approach may lead to financial strain and anxiety. This is 1 of the reasons, amongst a slew of others, that renders the 4% rule obsolete. An adaptable retiree, however, can adjust his spending, explore alternative income sources and seek professional guidance for financial resilience.
4. Personal Changes
Life in retirement often involves navigating personal changes and losses. We may face health challenges, loss of dear ones or encounter shifts in social networks due to change in lifestyle or relocation. Adaptability helps to cope with these emotional and relational changes.
With someone who loses a spouse, a primary companion in retirement, adaptability means reaching out for support and engaging in activities to reshape social connections.
5. Embracing the Unplanned
Some of the most cherished moments in retirement come from embracing the unplanned. Spontaneous trips, impromptu gatherings with friends or unexpected encounters can bring immense joy and fulfilment. Rigid planning tends to hinder serendipity.
Someone who encounters a fellow enthusiast for a shared interest during a chance encounter and is adaptable to collaborate on opportunities or pursue a new friendship, will find enrichment in unanticipated ways. Following the roadmap strictly will cause you to lose out on hearing the birds and smelling the flowers, missing out on a whole spectrum of experiences. Embrace a mindset of ‘why not’ and ’why not now’, to live to the fullest.
6. Adapting to Health Changes
As time marches on, health becomes a preoccupation. Adaptability is crucial in responding to changing health conditions and making necessary adjustments to maintain quality of life.
Imagine someone who had always enjoyed an active lifestyle but is now facing physical limitations due to age-related health issues. An adaptable approach involves exploring new forms of physical activity, seeking medical advice or finding alternative ways to stay engaged and fulfilled, such as with the help of new technology like AI.
Generative AI will not only re-define retirement, it will affect ALL aspects of our lives. Emad Mostaque, founder and CEO of Stability AI, even go so far as to claim that ‘there will be no (human) programmers in 5 years’. Will that be the fate of nurses and healthcare workers too? A lot of what we do and how we do it now will change. We can choose learn about it, be prepared or get left behind.
7. Social Connections
Retirement often involves shifts in social connections: children moving away, friends or neighbours relocating. Adaptability is vital in building and nurturing new relationships and to maintain a sense of community and engagement.
Being adaptable means to actively seek out new social opportunities through clubs, community organisations or online communities, ensuring a vibrant and fulfilling social life in retirement.
Keeping A Balance
A well-structured retirement plan serves as a financial safety net, providing a sense of security and direction for the future. However, it should not constrain the ability to adapt and evolve. The key lies in recognising that life will bring surprises, both delightful and unpleasant. Your retirement plan should allow for flexibility and contingencies. Now that 100 is the new 80, make every year count, live to the fullest.
Remain open to changes and new experiences and be willing to adjust your retirement vision to evolving circumstances. Let adaptability help us craft a retirement that reflects our values, passions and aspirations while allowing us to respond to life’s ever-changing landscape.
Remember:
With adaptability but without a plan, you will survive.
With a plan and adaptability, you will thrive.
With a plan but without adaptability, you will strive.
Let’s flourish,
Savvy Maverick
(Main image: Marjan Blan, Unsplash)
Disclaimer: The views expressed are drawn from personal experiences and do not constitute financial advice in any way whatsoever. Nothing published here constitutes an investment recommendation, nor should any data or content be relied upon for investment activities. Please seek independent and thorough research before making any financial decisions, including consulting a qualified professional. Data and information cited from sources will not be updated after publication.
