6 Retirement Myths that may cause hurdles in your happy retirement

Retirement is one of the most misunderstood phenomena in India. It is not only a neglected phase of future, but it is also misinterpreted. There is a common tendency to carry some preconceived notions about this phase of life, most of which create hurdles making your golden years rather difficult than beautiful. Listed below are some such retirement myths that are commonly believed.

• “I will focus on my kids’ future and they will take care of my retirement.”

This has been one of the most common retirement related myth prevailing in India. While you may make most of your future plans based on your kids’ future and wellbeing, ensure that your retirement isn’t a part of the same. Your financial independence is extremely important for your happiness. And pushing that as a responsibility on your kids shoulder might not only stress their future but will also make things tough for you.

• “I will need lesser money once I retire.”

If you think that retirement is going to put a cap on your expenses just as it puts on your income, you are living in a dream bubble. Research says that people spend greater amount of money in their initial years of retirement than even when they were working. Holidays, hobbies, gifts and lifestyle maintenance take the greatest share in these expenses. And some of which including a self-sufficient lifestyle would be inevitable. Hence, considering that your expenses will go on a fall during your retirement years is a huge misconception.

• “I can always keep working, even after my retirement.”

While working even post retirement may be a good way to keep you active and going, it may not always be a viable solution. It is completely misguiding to believe that you are going to work eternally and that your sources of income, even after retirement will continue sufficing your needs at that stage. Hence, making prior preparations to build a healthy retirement corpus can keep you financially stable, irrespective of you working part time or full time post retirement.

• “I do not need to worry because with retirement I will have to pay lesser taxes.”

Numerous people generate this common misconception due lack of knowledge and awareness. It is a fact that once you reach the age group of senior citizens, you will indeed have some tax exemptions; however, this does not mean that all your income will necessarily fall in lower tax bracket only. You need to have a wise awareness about your pensions, rental  income, capital gains, interests and returns from other investments and how much do they count on  cumulating. If your investments are not wisely planned and monitored, there may be a chance that you end up being on the higher order of tax bracket.

• “My PPF will be enough for my retirement.”

Employer based PPFs and other saving modules may work excellent as your additional savings during working years. However, relying solely on them for your future and retirement years could simply turn out as impractical and rather irrational considering the rate of inflation now-a-days. It’s best to always have your retirement corpus built and saved through various calculative investments, started during the early years of your life.

• “My Medicare policies will cover all my future health expenses.”

Similar to your PPFs, your mediclaim policies too will prove beneficial as additional financial support systems, but they should not be considered as the sole ones. You must understand that Medicare policies do not cover all your health expenses. The numerous costs which may not be considered under your mediclaim might fall directly on you as a burden. Your healthcare insurance should be an essential part of your retirement plan; but you must also ensure that it doesn’t become the sole base of it.

If you too are a believer in any of these retirement related myths, it’s about time you face the reality and start planning for a brighter future. For better assistance in planning your retirement, do seek help from retirement financial advisors. They can always help you plan your retirement and enjoy it better. 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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