Retirement Isn't The Endgame—The Real Test Of Your Finances Begins Here

Start aligning your portfolio 5 years ahead and adjust for risks and spending over time

- Atul Shinghal

For most savers, retirement is the reward for years of disciplined investing. But the real challenge often begins once paycheques stop. This phase, called decumulation, decides whether your savings last or fall short.

Besides, how you withdraw—the sequence, and protection against taxes and market shocks—can shape your financial future. A sound decumulation plan links your savings to a secure retirement. Without one, even a large corpus can drain fast. Poor planning leads to three key pitfalls: (i) withdrawals that drain your corpus too rapidly; (ii) excessive tax outflows that erode your savings; (iii) exposure to market volatility at vulnerable times.