Most common retirement regrets we see in India

A survey carried amongst retirees stated that one of the biggest fears of around 36% retired people was facing financial hardships during golden years. The number of people who believed this was even greater than 24% of those who thought poor health was their cause of concern in the life posts the 60s. This evidently shows the intensity poor retirement planning in India and the remorseful life most of the people lead in their golden years. Some of the common regrets that people usually carry with them in their old age are as follows -

Miscalculated retirement corpus

We often tend to believe that we wouldn’t have as many expenses when we retire. This is one of the biggest mistakes we all make during our peak years. To highlight the intensity, a survey said that around 35% people in India are not adequately prepared for their retirement and eventually end up working post-retirement to cover their financial shortfall. And 4% of them agreed that this was consequential of miscalculation, with them having lesser money in hand than they had thought. 

Spending too much in the peak years of life

While mistaken predictions of future mark one situation, over spending in the peak years of life when one should rather save more than spend is another common retirement regret faced by Indians. Most people believe that retirement is a far-fetched phase of life and hence they indulge into greater expenses in their early years of life. However, due to this delayed thought of retirement and hence actioned investing, they lose the crucial time for compounding money by keeping it invested.

Binging in the retirement funds

There are always those times in life when we need lump sum finances to buy expensive things, even if it may be a primary investment like a house, property, vehicle, child’s education or any other luxury commodity. And during such times, it is a very common tendency to borrow money from that saved in the retirement plans. Allowing an emotionally driven decision to drive one to borrow funds from retirement savings can cost a lot in the long run. While it can binge into one’s retirement corpus it can also become a heavier regret in terms of the taxes, penalties and other fees that go out in the process.

Not prioritising the savings and investments

While saving for your child’s education, marriage and future is extremely important, so is it to save for your own retirement. It’s always better to understand this well in time than to regret later for having neglected your golden years in the pre-planning.

Not thinking enough about your financial plans

As important it is to invest in retirement plans, it is equally critical to understand and analyse those plans from time to time. If one isn’t able to do it himself, it is ideal to seek help and professional advice from a retirement planning advisor who can guide through to reap the maximum benefits from the investments. This can help ensuring that your future and retirement is rather secure than sorry.

The best way to avoid retirement regrets is to identify the potential mistakes and keep them away well in time.