Many people aspire to enjoy a comfortable and financially secure retirement. Legendary global investor and Berkshire Hathaway CEO Warren Buffett has shared insights on how to make the most of retirement. He advises changing the common perception that retirement is a time to stop working altogether, emphasizing instead that it should represent a new phase of life.

 

For many individuals, retirement often coincides with declining health, which can reduce quality of life and shorten lifespan. Buffett, however, defies this pattern. At 92 years old, he continues to lead his company with strong enthusiasm, despite his well-known preference for fast food such as cheeseburgers, ice cream, and soda.

 

Buffett also cautions retirees to safeguard their own financial security. While supporting family members is not discouraged, he stresses the importance of ensuring personal financial stability first. Excessive financial assistance to relatives, he warns, can create long-term financial difficulties, especially in the absence of a steady income during retirement.

 

Regarding how much money is needed for retirement, Buffett does not specify a precise figure. In his book Tap Dancing to Work: Warren Buffett on Practically Everything, 1966–2013, he suggests having enough wealth to do anything one wants, but not so much that it eliminates motivation altogether.

 

On investment strategy, Buffett advocates for simplicity, particularly through investing in low-cost S&P 500 index funds. He even recommends allocating up to 90% of an investment portfolio to such index funds, including after his death. According to him, this approach helps minimize unnecessary fees that can erode long-term investment returns.

 

Although some financial advisors argue that a 90% allocation is too aggressive for retirees, Buffett believes advisors often benefit from making investing appear complicated. He claims that if people understood how straightforward investing can be, most advisors would lose a significant portion of their income. In fact, Buffett once joked that he would rather bet on monkeys randomly throwing darts at stock listings than rely on financial advisors, once management fees are taken into account.