Outlook Money
Many people delay or ignore retirement planning because of common misconceptions. Believing these myths can impact your financial freedom later in life.
While EPF and PPF are low-risk schemes, they might not provide adequate returns to offset inflation over the long run. Options such as equities, mutual funds, or NPS can help fill the gap and accumulate a sizable retirement corpus.
Many believe they'll begin investing once their income increases. But delaying retirement planning means missing out on the benefits of compounding. Starting early and small is better than starting late and big.
In addition to financial planning, you should think about your lifestyle after retirement. Consider about your objectives, daily routines, mental health, and time management.
While work-related costs may decrease, healthcare, travel and leisure expenses usually rise. Without prior planning, maintaining your lifestyle could be challenging.
Some assume they don't need insurance in their senior years. However, with increasing medical needs and rising costs, having senior citizen health insurance becomes even more essential to protect your savings.
If you plan to save for retirement in your 50s, you will have to invest a significantly higher percentage of your income. The earlier you begin, the easier and less stressful your retirement path will be.