Are you making any mistake in your retirement plan?

Retirement days are the golden moments of life that you wish to cherish in your hearts as each day passes by. During the dusking days of life you want to live to the fullest,especially when oneyou proudly look back at the journey of your life. But ever wondered how you will manage to live happily and proudly if you donothave sufficient corpus to live for. For exceptional cases there might be children who would take care of their parents, however, the world is slowly changing. Gone are the days of joint families. Kids, Siblings, other family members etc. used to take care of their elders till the dead end. With advance lifestyle pattern, people require more space and adopt nuclear families. There might be chances that in the event of crafting their own future, people forget that someone else is also dependent on them. So the best way to combat the problem is becoming self-dependent by adopting a suitable “Retirement Plan”

Although retirement may seem to be many years away, your action today will give you equal and opposite reaction in future. The rising health awareness, fitness level, advances lifestyle patterns have increased life expectancy after retirement. This makes it important to ensure that your finances are in good shape when you retire and therefore you should plan well in advance if you want to enjoy the true essence of your retired life.

We all know that retirement needs proper planning and most of the time we fail to arrive at the right conclusion for it. But if we are not organized with our thoughts it might lead to several mistakes. Here are a few such mistakes that people make while planning for their retirement.

Inflation cost

Inflation is like a termite. It will keep on eating all your perks and increments leaving very little to save. During your working days with increments, incentives and perks you can cope up the inflation costs. The actual problem starts when your professional income comes to a halt after retirement. These inflations literally rob you of your income. Price rise or inflation can gradually minimize the value of money. Future is expensive and the cost of living will increase due to inflation. Most people underestimate the impact inflation will have on their retirement plans. Even at relatively low rates, inflation eats into a good portion of your hard-earned money.

Stagnant asset

Many people have tendency of sitting relax on their chair once policy is purchased. However, this should not be the ideal thing to do. Infact, the actual mind game starts once you buy the policy. Understand that person’s financial needs change with time. Therefore, it becomes critical to change one’s asset allocation (equity to debt or vice versa) to make investments suitable to one’s changing needs. Shifting from equity investments to debt, while nearing retirement, is imperative. Secondly, diversification is needed to maximize returns. One has to keep in mind that the only way to counter inflation is getting right mix of investments that yield good returns in the long-term period.

Planning Delay

Another ground rule is donot push your planning at the end in the list of financial goals. Never wait for retirement planning when you near the end of their working live. Try and start as early as possible so you have ample time for your money to grow well. And as time passes, you can take the benefit of compounding, which can grow money exponentially over time.

Life expectancy

Life expectancy in India has increased dramatically. The rising health awareness, fitness freak people, advanced and lavish lifestyle, has increased the chances of living longer and healthier. This simply means that the number of post-retirement years without regular income is also increasing consequently. It, therefore, becomes more important to ensure regular income for life after retirement.

Accountancy

Life never moves in a straight line. There are always twist and turns in the journey of your life. No one can keep a proper account of what life is all about. But yes by taking a suitable retirement plans one can surely maintain the balance of happy and secured retired life so that at the end you tally the accountancy of life.

All those who save for retirement must develop a certain level of financial skill so that they make wise decisions with their assets. Choose a suitable plan, reshuffle your asset allocation, manage the savings to grow and then enjoy the true essence of happy retired life.

[Source: https://tackk.com/tsce9h]