Top 9 Retirement Mistakes You must absolutely Avoid.
1. Failing to have a proper retirement planning and Depending on Pension only.
Life expectancy has increased. Retired life is almost equal to your work life these days. Make retirement planning and saving a financial priority. It is usually best to prioritize retirement savings over college savings. There are potential ways to pay for college, such as scholarships, loans, grants, and children working to help pay for their education. But options like these don’t exist for retirement. Footing lavish bills at the expense of your own retirement savings could come back to haunt you.
2. Depending on Kids for Financial & Physical help- The Younger generation doesn’t get pension. They don’t have secure jobs and the jobs are demanding. They keep moving with jobs. Their lifestyle is different and their kids’ education expensive. Their spouse might be working and hence both are busy. They have more ambitions and more aspirations. Is it fair to demand attention from them? Prepare yourself to get outside help (care assistant) if required.
3. Failing to plan for Health care costs– We all want to believe we'll stay healthy and live well into our retirement years. A good diet, plenty of exercise and regular medical check-ups help. But even the hardiest of retirees can fall ill, and even a single hospital admission might eat up your retirement fund. So better take a health insurance early in your life to avoid high premiums.
4. Failing to draft your will - Will planning isn't just for the wealthy. Even if your assets are modest — perhaps just a car, a home, and a bank account — you want to have a valid will to specify who gets what and who will oversee dispersing your money and possessions (a.k.a. the executor). Die without a will and your assets are subject to probate laws. Not only could your assets get tied up in court, possibly creating financial hardship for your heirs, but also create disharmony among your children
5. Spending retirement fund on buying a property - Failing to maintain liquidity by investing in a property expecting a good rental returns (please understand that rental returns less than 2% in India) and planning to earn by selling property at high cost (beware of market crash that might sweep away your hard-earned money).
6. Investing in stock market and other risk assets- Investing in risky stocks, borrowing against your property, improper asset allocation etc should be avoided in this age.
7. Choosing to live at isolated place- It might be your dream house, but medical help might not reach on time in case of emergency. You might not find caregivers when needed. It might be a socially isolated place. Your relatives & friends might find it hard to visit you. There might be security issues. Try to stay at a happening place at this age, where services are a call away.
8. Not expanding your social network- Your world is shrinking. You might outlive your friends. You might be losing your friends & relatives one by one. Unless you join a community and expand your social network, it will be quite lonely for you, with each day passing.
9. Not developing a hobby to kill time – Develop a hobby early -reading, knitting, painting, cooking, gardening, or volunteering to keep yourself engaged. Join a travel group and explore the world, if you can. You will get a lot of free time. You cannot watch TV the whole day. Grand kids might not live with you. So plan ahead.