Retirement Planning Mistakes You Should Definitely Avoid â€“ HDFC Life
1. Underestimating the amount of money you will need
Quite often, people tend to underestimate how much money they require per month. While youâ€™re earning, it may not seem like such a big deal to dip into your savings every now and again. But once youâ€™re retired and you no longer have a steady source of income, itâ€™s incredibly important to stick to your budget. With this in mind, youâ€™ll need to take stock of your current lifestyle, understand the inflation trends, and then calculate how much money you will need to sustain your current standard of living once you are retired.
2. Ignoring medical expenses
As we all grow older, weâ€™re going to have to deal with various health issues. While youâ€™re saving for your retirement, you must not forget to factor in medical expenses. However, budgeting for these kind of unexpected expenses can be very difficult. This is why itâ€™s a good idea to get yourself a goodÂ health insurance plan. With your insurance in place, you can get the kind of treatment you need without having to worry about the growing medical bills that you may have to pay if you need medical attention.
3. Forgetting about taxes
Depending on the kind of retirement plan you choose to invest in, you should always be mindful of the kind of taxes you will have to pay on the returns you earn. You should always try and look for those investment avenues that allow you to enjoy tax rebates, so that you donâ€™t spend more money than necessary and get the most return on your investment.
4. Dipping into the funds before your retirement
No matter how early you start saving for your retirement, itâ€™s important to remember that the more you have saved up, the better it is for you. This is why you shouldnâ€™t think about dipping into these savings before you actually retire. Itâ€™s often seen that people pull money out from their retirement fund to help pay for their childrenâ€™s education, but this isnâ€™t ideal. Instead, you can think of purchasing a childâ€™s plan for your little ones, so that once they grow up, they have their own funds to use.
5. Thinking itâ€™s too early
You should always remember that itâ€™s never too early to start saving for your retirement. Ideally, you need to start building up a retirement fund right from the time you start working. The earlier you jump on the retirement planning bandwagon, the more time you have to build yourself a significant nest egg for your retirement.
So, whether youâ€™re just entering the corporate world, or youâ€™ve been working for a few years, now is the perfect time to start planning your pension. To find out more about how you can truly enjoy life after retirement, click here.
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"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
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