It is often said that if you want a peaceful and comfortable life after retirement, proper planning and disciplined investing during your working years are essential. This is why most financial experts advise starting retirement planning from the very beginning of your career.

However, the reality is that many people do invest for retirement, but they make some major mistakes. These mistakes can wipe out years of hard-earned savings in a short time and fill your old age with stress. Let's look at 5 major mistakes to avoid in retirement planning.

1. Ignoring Inflation While Building Your Retirement Fund

If you are saving money for retirement and not considering inflation, this could be your biggest mistake. Inflation gradually erodes the value of your money. In India, the average long-term inflation rate is considered to be around 6%. At this rate, today's 1 crore rupees will be worth only about 17-18 lakh rupees in 30 years. Therefore, it is crucial to set an inflation-adjusted target for your retirement so that you can maintain the same lifestyle after retirement as you have today.

2. Not Planning How Money Will Be Spent After Retirement
Retirement planning is not limited to just accumulating money. Planning how to use that money after retirement is equally important. Many people spend excessively without planning in the initial years of retirement. As a result, they face a shortage of funds later on. Therefore, decide in advance how much you will spend each month. Determine which funds will remain secure and which will provide a regular income.

3. Investing All Your Money in an Annuity
Taking an annuity plan for regular income after retirement can be a good option, but investing all your money in it is a big mistake. Money invested in annuities is often locked in. If a sudden medical or family emergency arises, it can be difficult to access that money. Therefore, it is safer to diversify your retirement fund across different options.

4. Underestimating the need for medical expenses

Medical expenses can be the biggest expense after retirement. As you age, the cost of treatment and medication also increases. If you haven't already secured good health insurance and built up a cash reserve for emergencies, your savings could be under significant pressure after retirement. Therefore, make medical expenses an essential part of your retirement planning.

5. Over-investing in real estate
Investing too much of your savings solely in real estate can also be detrimental. Selling property takes time, and it's not easy to access funds quickly in an emergency. Additionally, maintenance costs can be high, and property values ​​can fall during market downturns. Therefore, a liquid and diversified investment portfolio is crucial for retirement.

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