Retirement Mistakes to Avoid: Retirement is a time when the tiredness of work ends and life reaches its most comfortable point. Everyone wants this to be a time of happiness, peace and financial security. But did you know that one small financial mistake can wipe out years of your savings in minutes? Just saving money is not enough. Without proper planning, mistakes like ignoring health expenses, carrying debts or locking investments in the wrong place can take away the happiness of your retirement. Today we will tell you the 7 most common retirement mistakes and their easy and smart solutions...

No clear exit plan

It is not enough to just save money, it is important to know how to spend it. Without a plan, many people spend too much in the initial years of retirement on things like travel, entertainment and later on, nothing is left for medical expenses or longevity. Therefore, withdraw only 3-4% of your total funds in the first year. Keep increasing it every year according to inflation. This will make your money useful for a long time and will also be left for your needs.

Locking all the money in an annuity

Annuity provides monthly fixed income, but there is no easy access to cash. You cannot withdraw money in emergency. Returns are often lower than inflation. Take annuity only for essential expenses like rent or ration, keep the rest in mutual funds or flexible investments.

Avoid stocks altogether

Many retirees fear the ups and downs of stocks. By not buying shares, inflation gradually eats away your savings. In such a situation, keep 10-15% of your money in good large-cap stocks or balanced funds. Reserve the remaining 5-7 years of expenses in FDs or bonds.

Relying only on cash for medical expenses

A serious hospitalization can cost lakhs. Medical inflation in India is up to 13-14%. Health insurance is no longer an option but has become a necessity. Maintain basic policy, super top-up and cash reserve. This will ensure that retirement savings remain safe even in emergencies.

no estate planning

In the absence of a will, nomination or financial records, the family may face legal trouble. So make a will, enroll in bank accounts, keep digital records. This will give mental peace to your family and avoid disputes.

excessive investment in property

Money gets stuck in real estate and costs like maintenance, taxes, repairs etc. increase. There may be shortage of cash when needed. After age 60, leave regular income with reverse mortgage and stay in your home. This method provides cash while keeping your assets safe.

Investing in Tax-Non-Efficient Products

FDs seem safe but returns after tax are low. For high income people, it can cost a huge amount. So invest in deep discount bonds, LTCG tax will be only 12.5%. Tax smart investing improves your retirement cash flow.

Disclaimer: This article has been written for general information and educational purposes. The advice or tips given here are not advice related to personal finance. Always consult your financial advisor before making any decisions related to retirement planning, investments, insurance or taxes.

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