Reaching the Summit: A Comparison of Saving for Retirement and Climbing Mount Kilimanjaro

Feel free to reach out to PSG Wealth adviser Lawrie Higham directly.

In the article, I explore the similarities between mountain climbing and saving for retirement.

In the many long hours on the expedition over 8 days, I pondered the similarities of the climb to the process to save for retirement. Retirement savings and mountain climbing may seem like vastly different concepts at first glance. However, upon closer examination, we can draw intriguing parallels between these two challenging journeys. Both endeavours require careful planning, a long-term perspective, commitment to the plan, overcoming challenges, adapting to changing circumstances and pure dogged determination to reach the objective. In this article, we will explore the similarities between retirement savings and climbing a mountain, highlighting the key steps, challenges, and rewards associated with each.

Section 1: Setting the Goal

Both retirement savings and a mountaineering expedition begin with setting a clear goal. For retirement, it involves envisioning the lifestyle you desire and determining the financial resources needed to support it. Similarly, mountaineering requires a goal of reaching the summit, understanding the physical and mental preparation required, and assessing the resources and logistics needed to undertake the expedition.

Section 2: Planning and Preparation

Retirement savings and climbing Mount Kilimanjaro require meticulous planning and preparation. In retirement savings, this involves creating a comprehensive financial plan, including budgeting, understanding investment options, and determining the desired retirement age. On the other hand, preparing for climbing Mount Kilimanjaro involves physical training, acquiring the necessary gear, and understanding the logistics of the climb, such as permits, guides, and accommodation.

Section 3: Steady Progress and Persistence

Both retirement savings and climbing Mount Kilimanjaro demand consistent effort and persistence. In retirement savings, regular contributions to retirement accounts and investments, help build wealth over time. Similarly, climbing Mount Kilimanjaro requires gradual acclimatization to the altitude, step-by-step progress, and unwavering determination. In both cases, small, consistent actions lead to significant long-term results. Each subsequent step builds on the steps before, and you really only appreciate the progress that has been made, when you stop and look back.

Section 4: Overcoming Challenges

Retirement savings and climbing Mount Kilimanjaro present challenges that require resilience and adaptability. In retirement savings, financial setbacks, market volatility, and unexpected expenses can test one's resolve. Likewise, climbing Mount Kilimanjaro poses physical challenges, including altitude sickness, fatigue, and unpredictable weather conditions. Overcoming these obstacles requires determination, flexibility, and the ability to stay focused on the end goal. It is important to focus on the controllable variables and to remain flexible in order to be able to respond to a changing environment. One needs to accept and become comfortable with the fact that there are things beyond our control. Making decisions with the long term objective in mind, helps us to steer through the uncertainty.

Section 5: Reaching the Summit and Enjoying the Rewards

The ultimate reward of retirement savings is financial security and the ability to enjoy a comfortable retirement. Similarly, reaching the summit of Mount Kilimanjaro is a remarkable achievement, offering breathtaking views and an incredible sense of accomplishment. Both experiences provide a deep sense of fulfilment and satisfaction after years of hard work and dedication.

Section 6: Returning Safely back home

Once you retire, you have fixed capital and you need to be disciplined in your financial decisions and ensure that you operate within your budgets to ensure your capital lasts you for the duration of your life, and even retain some capital for legacy. Similarly, it is amazing to reach the summit of Kilimanjaro, but you need to return safely to base camp and then leave the mountain safely and return home. Climbing downhill presents different challenges, including fatigue from having summited with a long 12-15 hour summit day/night session, utilising different muscle groups, and longer down-climbing days than the up-climbing days. You do not want to lose concentration, fall and injure yourself in the final stretch. You expressly want to avoid having to be airlifted off the mountain!

Conclusion:

Retirement savings and climbing Mount Kilimanjaro share many similarities, despite being seemingly unrelated. Both journeys require goal-setting, planning, preparation, persistence, and overcoming challenges. Whether it's securing your financial future or conquering a physical feat, the lessons learned from these endeavours can help shape a fulfilling and successful life. So, whether you're saving for retirement or dreaming of reaching the summit, remember that the path may be challenging, but the rewards are worth the effort.

Reflection:

I was asked what my greatest learning was, having returned from a successful summit of Kilimanjaro. I am sure all the climbers in our team would have their own learnings. In my case, the realization that struck me is, it is amazing what the body can do when the mind commits. A commitment to doing whatever it takes to get the job done, remaining committed to the task and persisting through challenges taking one small step at a time to achieve the objective. The formula for success is the same for climbing a mountain as it is for achieving long term retirement saving success in this regard. Happy climbing!