Avoid These 3 Regrets Related To Retirement

By Amit Sethi

Can you imagine a retirement life in which you have to live with regrets? Well, you won’t like it, right? Do you know the big regrets that people often come across during the retirement period and how to avoid them? Let’s check out the 3 retirement-related regrets that most retirees may want to avoid.

Not Having Their Own Home

Having your own home may not be necessary, but it can give you comfort and security because you don’t have to change the abode in old age. If you live in your own home for a long time, it can build social connections and you can get friends with whom you can spend your retirement period. After retirement, being homeless can be a regret for many people.

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You can plan where you would like to live in your retirement period and buy a home accordingly. If you already have a home but want to live in a senior living property, you can do it before you retire. Buying a home after retirement can be financially challenging and choosing the right property can also become difficult. So, if you want to avoid the regret of not having your own home after retirement, try to plan it before you retire.

Missing The Necessary Insurance Cover

After retirement, it is important to mitigate all the risks and insurance is the best tool for this purpose. However, not having a health insurance policy can turn out to be a big regret in your retirement period. In the absence of a health insurance policy, hospitalisation expenses can easily ruin your retirement planning.

If you can’t take a health policy before your retirement, you can choose senior citizen retirement policies available in the market. Buying a new policy in retirement may come with several attached terms and conditions and they may cost you extra premiums, but still, they may serve the purpose of mitigating the risk.

Choosing The Wrong Investments At An Early Age To Build The Retirement Corpus

It’s important to plan your investments very well so that you can build an adequate corpus for your retirement. However, if you chose the wrong investment products when you were young, it can significantly impact your retirement corpus. For example, at a young age, you decided to invest all your money into FDs and didn’t invest in equity instruments due to which you got a smaller retirement corpus. It’s important to take an appropriate level of risk at various stages in your life to get a good return on investment so that you can build the desired size of retirement corpus.

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Reviewing the investment performance from time to time can also be helpful. If you failed to invest in the appropriate investment at an early age and you missed the retirement corpus target, you can squeeze your budget, take a part-time job or drop some of your low-priority financial goals so that you can optimally utilize the retirement corpus. Right planning, its timely execution and a regular review of your financial goals can help in avoiding big financial regrets in your retirement period.  

The author is an independent financial journalist.