Outlook Money
Retirement planning is very important for an individual. As per the experts, one should start planning for retirement as soon as possible.
It is suggested that parents should also encourage kids to start Systematic Investment Plans (SIPs) in order to instill good and healthy financial habits.
1. Not Starting Early- It is always advised by financial experts to start retirement planning in 20s, as one gets better compounding benefits, more profit, better financial discipline and the ability to take more risks, if planning starts early.
Rising inflation can very significantly impact purchasing power. If one overlooks adjusting for inflation when estimating for retirement corpus, serious financial setbacks can take place. To avoid this, it’s crucial to factor in inflation while planning for retirement.
Failing to review the portfolios periodically can lead to a retirement corpus that's insufficient for actual needs. It is important as changes keep taking place in life like marriage, the birth of children, or other significant changes.
Compiled by Syed Muskan