Costly retirement mistakes that you should avoid
The top mistakes that retirees usually make include not paying off debts such as home loans before retiring and not have saved enough for retirement. Here are some of the top blunders that many retirees make and then regret.
Mistake 1: Assuming EPF, gratuity, etc. will be enough
This is one of the major mistakes that people make of assuming that their social security accumulations like Employee Provident Fund (EPF), gratuity, superannuation, Public Provident Fund (PPF), etc. would be enough for retirement. However, this assumption can prove to be a serious problem while managing cashflows in retirement. This usually happens due to lack of retirement planning. So, to avoid this, it is important to hire a professional and get your retirement planning done.
Mistake 2: Underestimating healthcare cost
In retirement apart from normal expenses, healthcare expenses are something which may create a dent in your overall cashflows. So, never underestimate the cost of retirement. If you are under an impression that you have a health insurance, then its time to rethink on that option as no matter how fit you are in your retirement stage the premiums tend to be higher. So, relying just on your health insurance in retirement would not be a good option, rather you must consider accumulating for building a health corpus which you may use in your retirement stage without compromising your cashflows and investments.
Mistake 3: Not having a retirement plan
This is one of the biggest mistakes done by many individuals. People tend to give more preference to other financial goals such as child’s education and marriage rather than their retirement. Here people tend to be more emotional with their child’s education and marriage, which is not at all a wrong thing. However, it is always prudent to give due attention to retirement. Even if you are saving for your child’s education and marriage, don’t neglect your retirement. Some part of your savings must go for retirement. As it is rightly said that, “your parents are not your emergency fund; your children are not your retirement fund; build your own wealth”.