Top Retirement Planning Mistakes to Avoid

We all want a relaxed, dignified retirement but too often, the path there is littered with simple mistakes. Here’s a look at the most common pitfalls and real ways to avoid them :-

1. Starting Too Late

Most of us think, “Retirement is decades away, I’ll start later.” Unfortunately, delaying even a few years means losing out on compounding the single most powerful force in building a corpus.

Fix: Begin as soon as you start earning. Even small contributions grow over time.

2. Vague Goals, Weak Planning

Without clarity like when you want to retire, where you’ll live, or what lifestyle you envision it’s impossible to map a realistic corpus.

Fix: Sit down, envision your ideal retirement monthly expense, and back-calculate the required savings.

3. Depending Only on Safe Assets

Government schemes like EPF and PPF are reliable but they often lag inflation over the long haul.

Fix: Keep a balanced mix of EPF, PPF, NPS for safety; equity mutual funds and index funds for growth. Revisit this mix every few years.

4. Overloading on Real Estate

Property is a culturally trusted investment but it's costly, illiquid, and doesn’t generate monthly income unless rented.

Fix: Use real estate as part of a diversified portfolio, not the entire plan.

5. Ignoring Healthcare in Later Years

Healthcare costs often rise sharply with age and many people retire without a solid insurance backup.

Fix: Get lifetime or top-up health cover early, and review it periodically.

6. Carrying Excess Debt

High EMIs and credit card loans can sap your retirement savings ambition.

Fix: Clear high-interest debts ASAP and avoid new liabilities as you approach retirement.

7. Skipping Tax Planning

Many retirees forget that withdrawals from EPF, NPS, mutual funds, or annuities can attract taxes.

Fix: Plan your withdrawals strategically. Consult advisors to optimize tax efficiency.

8. Not Updating Your Plan

Life changes you change jobs, move cities, health alters and so should your retirement plan.

Fix: Review your plan every 2–3 years, especially after major life events.

✅ Why Personalized Financial Guidance Matters

Retirement and investment needs are deeply personal. That’s why seeking help from a trusted firm like JM Financial Services can make a difference. Their experts provide tailored retirement roadmaps, help choose smart investments, and adjust strategies as your life evolves.

Real planning is as much about emotional peace as it is about numbers. And having trustworthy professionals by your side helps you stay disciplined and on track.

🙋 Frequently Asked Questions

Q1. When should I start retirement planning?
✔️ As soon as you begin earning, even with modest savings.

Q2. How much should I save every month?
✔️ Aiming for 15–20% of your income is a good starting point, adjusted for age and goals.

Q3. Can EPF and PPF alone create a sufficient corpus?
✔️ Over decades, they help but usually aren’t enough due to inflation. Diversifying with equity helps grow faster.

Q4. Should retired people avoid equities entirely?
✔️ Not at all. A portion of your corpus (20–30%) in equities helps beat inflation and sustain longer lifetimes.

Q5. Is consulting an advisor necessary for retirement planning?
✔️ While optional, working with professionals like JM Financial adds structure, discipline, and quality insights that AI or DIY tools often miss.