Retirement Planning: Do not ignore these 7 mistakes while planning for retirement..

Retirement Planning: Planning for retirement is a big and important step in life. But sometimes people make such mistakes that can spoil all our hard work. To make retirement days peaceful, you must know what mistakes you should not make at all.

The first mistake is to start retirement planning late. Many people think that they are still young, but they will see later. But money grows with time, especially if you start investing early.

Avoid the mistake of not saving every month.

If you start saving a little every month at the age of 20, then with the power of interest and investment, you can accumulate a good amount of money by the time of retirement. By delaying, you miss this opportunity. The second mistake is not understanding how much money is needed in retirement. People guess, but do not calculate correctly.

Not keeping track of expenses.
You have to calculate your expenses, such as rent, food, electricity, and other needs. Also, you have to consider that inflation increases every year. If your expenditure today is Rs 30,000 per month, then after 20 years it can be double. Therefore, keep inflation in mind while planning.

Ignoring medical expenses
With increasing age, the cost of visiting the doctor, medicines, and hospital increases. If you have not saved money for this in advance, then there can be problems in retirement. It is very important to have health insurance and an emergency fund.

Not diversifying investments
Some people invest all their money in one place, such as the stock market or property. If there is a loss in it, then all the savings can be lost. Therefore, divide your money into different places like mutual funds, fixed deposits, and government schemes. This reduces the risk.

Withdrawal planning
After retirement, you will have to decide how much money to withdraw every month. If you withdraw more, then the money can end quickly. Make a proper plan for this, so that the money lasts for a long time.

Ignoring debt
If you do not repay the loan till retirement, it can become a burden. Try to repay all the debts before retirement.

Not taking care of taxes
The seventh mistake is not thinking about taxes. Even after retirement, you may have to pay tax on some investments or income. Therefore, invest in tax-saving schemes like PPF or ELSS. Apart from this, do not make the mistake of forgetting the needs of the family. While planning for retirement, keep in mind the needs of your spouse and children. Save for them too so that there is no shortage.

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