6 Retirement Planning Myths That Could Derail Your Financial Future

Ask most Indians when they’ll start retirement planning, and the answer is usually “after 50” or “once the children’s education is sorted”. Retirement, however, is not a sudden event. It’s a slow transition that needs steady planning. And yet, many people fall for common myths that can jeopardise their financial future.

We often encounter these myths repeatedly, and that’s why they need to be busted.

Myth 1: I Will Continue Working As Long As I Want

It’s great to be active, but job markets, health and energy levels have their own plans. You may not have control over how long you can keep earning. Planning for retirement early gives you choices: whether you work, slow down, or take a break.

Myth 2: My Children Will Take Care Of Me

This belief, rooted in culture, may not hold in today’s world.

“Nuclear families, rising costs and migration mean adult children have their own struggles. Financial independence in retirement is not selfish; it’s being responsible. A strong retirement plan lets you live with dignity, without becoming a financial burden,” says Ram Medury, Founder & CEO, Maxiom Wealth.

Myth 3. Putting Money In EPF and PPF Is Enough

Provident funds help. So do putting money in many other safe but low-return generating investment avenues such as fixed deposits and post office schemes. But inflation is a silent killer. What looks like a large corpus today may fall short 15 years from now. Investing in high-return generating products like investing through PMS (Portfolio Management Services) or mutual funds becomes essential to beat inflation.

Myth 4. I’ll Invest More Once I Earn More

This is a delaying tactic dressed as logic. In truth, earning more doesn’t help anyone save more. However, the earlier you start, the less you need to invest each month. Compounding works best when it has time. Even Rs 5,000 a month started at 30 can grow larger than Rs 15,000 a month started at 45. Use SIPs or a disciplined investment plan under the guidance of a SEBI-registered investment advisor.

Myth 5. Retirement Is Just About Money

It’s not. Retirement also needs mental preparation, a routine, hobbies, and most importantly, peace of mind that your money will last. That confidence comes from thoughtful planning.

Myth 6. My Expenses Will Drop Sharply After Retirement

You may stop commuting, but medical costs, travel, gifting and lifestyle needs often rise. “Many retirees spend more in the early years of retirement, especially on experiences they had postponed. So, don’t under-budget. Plan your drawdowns and equity allocations with a reliable financial planner,” advises Medury.

To sum up: Retirement is too long and too important to base on assumptions. Bypass these myths by starting early, diversifying smartly, and investing wisely. This lets you retire with clarity, not confusion.